Organizational change capability: toward a conceptual and empirical definition

PurposeWhile organizational dynamic capabilities (DCs) are understood as crucial to small- and medium-sized enterprises (SMEs)’ success, the configurations of individual-level capabilities and meta-capabilities, in the form of dynamic managerial capabilities (DMCs) and organizational change capacity (OCC), in which that outcome can be observed are not clear. We answer this research question while considering the firm’s internationalization as a moderator.Design/methodology/approachWe conduct a two-stage fsQCA analysis, with data obtained through a questionnaire.FindingsOur results indicate two equifinal main paths. Managerial cognition of DMCs and the change processes capacity of OCC are incredibly relevant conditions for determining the outcome of DCs in SMEs, with a peripheral role of the remaining OCC dimensions. Internationalization moderates this relationship. In internationalized firms, as the second path, organizational learning, the capability to change contexts and human capital gain prominence.Research limitations/implicationsWe offer important insights into the contingencies of the development of DCs in SMEs, highlighting the importance of configurational thinking. More than one or other related dimension, the conjunction of DMCs’ and OCC’s dimensions determines the presence of DCs. Furthermore, we highlight the importance of considering the internationalization of the firm.Originality/valueNo study has approached DMCs and OCC as capability antecedents of DCs in SMEs, disentangling interrelated antecedents and thus determining the sufficient conditions for their formation. The consideration of the moderation of internationalization further expands the contextual relevancy of these antecedents. Methodologically, we are one of the first studies to utilize newly improved procedures to study moderation in a configurational analysis.

Purpose – The main purpose of this study is examining the relationship between organizational change capacity (OCC) and organizational performance (OP). Design/methodology/approach – After extensive researches in organizational literature about change and performance, the OCC model from Judge and Douglas consists of eight dimensions (trustworthy leadership, involved mid-management, capable champions, innovative culture, trusting followers, systems thinking, accountable culture, and effective communication), and the OP model from Lee consists of six dimensions (stakeholders' satisfaction, organizational communication, organizational growth, strategic performance, knowledge management, and team collaboration); were considered. In order to test the hypothesis, a series of 130 qualified employees in a knowledge-based organization were questioned. The measurement tool was a two-part questionnaire (OCC and OP). Validity of questionnaire well approved based on face validity method by experts, specialists and professors of management. Using the results of pre-test, Cronbach's α was showed the very high reliability. Findings – Moreover, the results of regression analysis showed that regression line ascribes changes in dependent variable (OP) to independent variable (OCC). It means that high percentage of change in OP (77.3 percent) will be explainable and predictable with OCC. Then, with utilizing of parametric and non-parametric tests, the relationship between OCC and OP; and between components of OCC and OP was investigated. Finally, Pearson and Spearman correlation tests results confirmed the significant relationships. Overall, the results of this study show the significant, positive, strong relationship between OCC and OP. Originality/value – As not many studies have been done about the impact of organizational change on OP, the paper's findings will be useful to assess the adaptation ability of organization with changing environment and the impact of this adaptation on OP.

PurposeThe purpose of this paper is to systematically develop a reliable and valid construct that can facilitate and enhance the organizational change process by following Hinkin's suggestions for construct development. The “Organizational Capacity for Change” (OCC) construct provides a multi‐dimensional assessment tool to diagnose and guide organizational change.Design/methodology/approachIn the first empirical study, the paper provides details on the creation and refinement of the OCC instrument by reviewing the results of nearly 3,600 respondents in 161 organizational units in a wide variety of industries from 1999 to 2005. In the second empirical study, it tests the OCC instrument in a single industry to determine the validity of the measures.FindingsThe result is a reliable and valid multi‐dimensional, 32‐item instrument which describes a new construct in the organizational sciences that can be used by executives to prepare for and enhance their organizational change process, or for scholars to study the organizational change process.Practical implicationsTheoretically, this measure refines and extends the dynamic capabilities literature. Pragmatically, this measure provides a tool for assisting executives to lead organization change initiatives.Originality/valueThis measure provides a reliable and valid tool for assessing organizational change capacity, as well as provides a means for gauging improvement in organizational change capacity over time.

Change is an unavoidable phenomenon and organizations must develop their change capacity in order to survive in competition. The purpose of this study was to examine the determinants and impacts of organizational capacity for change (OCC). In addition, the moderating influence of empowerment on transformational leadership change is also examined in influencing the organization's capacity to change and remain empowered. The hypothesis is tested using the data obtained from the survey. A total of 200 questionnaires were filled in by management as respondents and used for data analysis in this research using the survey method. The results of the study show that the orientation of transformational leadership has a positive effect on OCC. Likewise, the influence of OCC on empowerment. To increase the capacity for change, administrators at Islamic boarding schools can increase the orientation of transformational leadership so that Islamic boarding schools can increase empowerment by not changing the existing culture at Islamic boarding schools and remain empowered according to applicable regulations. This research empirically examines OCC in the context of Islamic boarding schools which are shaped by leader orientation. Furthermore, OCC has a mediating role in the influence of leadership on the empowerment of Islamic boarding schools. In addition, OCC in this study was tested with 3 dimensions (learning, process, and context) which were previously proposed only conceptually. Transformational leadership has the organizational capacity to change. In the end, this research proposes and shows that the organizational context (culture) plays an important role in the organizational capacity for change (OCC) in developing empowerment.

Research Summary: We analyze the effect of offshored service task types on the development of capabilities in emerging market service provider firms. Using multiple case studies, we find that, dependent on task interdependent service types, implying different client interactions (firm‐external determinants), organizational capabilities are developed. More specifically, reciprocal task interdependent services generate human capital and management capabilities, while sequential task interdependent services generate organizational capital and management capabilities. Moreover, we find a relationship between the capabilities, where the deficient development of one capability can be mitigated by the development of another capability (firm‐internal determinants). Grounded in organization and service production theory, the article contributes to the thematic literature on service offshoring and the literature on organizational capabilities, with a particular focus on emerging market firms. Managerial Summary: Offshore outsourcing of advanced services is contributing to the development of capabilities for client firms, but is also expected to benefit service provider firms from emerging markets. Thus, we study how offshore outsourcing of services contributes to the development of these capabilities for service provider firms. We find that the characteristics of the services, which are causing different interactions with the client, help the firm develop a variety of capabilities. These capabilities affect the management, employees, and organization of service provider firms. Although the developed competencies are not a solution for all business development challenges of emerging market firms, the implications of this study could lead to competitive advantages for the firms if fully explored and exploited.

<p>Strong organizational capacity is necessary to ensure a sustainable or enhanced performance during any form of change. In this regard, changing for achieving a high performance is a must for an institution. This study, through a case study at National Research and Innovation Agency (BRIN), aims to investigate the effect of organizational capacity of a public research institution for changes to achieve high R&D performance. Eight dimensions in Organizational Capacity for Change (OCC) and five dimensions in High Performance Organization (HPO) were examined. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The results reveal that OCC significantly affected HPO at the 5% level, as the value of t-statistics > t-table (1.96). The influence of OCC was 0.875, meaning that an increase in the OCC resulted in a rise in HPO. Furthermore, the structural model of HPO produced an R-square value of 76.6%, reflecting the extent of the diversity of HPO that were able to be explained by the model used in this study, while the remaining (23.4%) were explained by factors outside the model. System Thinking (ST) was revealed as the most dominant dimension in OCC, indicating that BRIN’s capacity for change emphasizes the importance of aligning structures, processes, people, and policy to foster adaptability and resilience. Meanwhile, Management Quality (MQ) was revealed as the most dominant dimension in HPO, indicating that it facilitates smoother transitions in BRIN during the period of organizational change to achieve better R&D performance.</p>

Organizational capacity for change and environmental performance: an empirical assessment of Bulgarian firms

In conversations with our readers and authors, we have been noticing an increasing demand for Open Research for several years. This demand is further intensified by requests of funding organizations as well as politics. Open Research is a very broad term that covers various aspects of science becoming more open, accessible, efficient, democratic, and transparent, as defined by the European Commission. Certainly, publishers and journals play an essential role in this process. We do not only consider Advanced Science at the forefront of this development, but we are also committed to further boost this process. Manuscripts published in an Open Access-journal such as Advanced Science are accessible to everyone anywhere at any time. They are easy to find on our journal-website as well as in all important indexing services (e.g., PubMedCentral, Web of Knowledge etc.). Publishing under a CC-BY license accelerates and simplifies communication. Furthermore, we accept submission of papers published on preprint-servers in order to improve rapid research availability and transparency. The visibility of your results can be further enhanced by ordering a Video Abstract (https://onlinelibrary.wiley.com/page/journal/21983844/homepage/video-abstract-gallery.html) or promotion in various social networks. The exceptional quality of our publications is guaranteed by a fast, rigorous and strict peer-review process. Starting in 2020, our referees will have the option to receive ORCID-reviewer recognition. This is realized in a very convenient and automated way and represents an additional step towards Open Research. As a result, we are confident that our ongoing ambition to facilitate interdisciplinary collaborative science and efficient impactful research will continue to be prosperous. The key performance indicators for Advanced Science illustrate that our way towards Open Research is going in the right direction. Submissions increased by more than 60% and the number of published papers increased by more than 35% compared to the previous year (both values at the time of writing 2019). The impact factor raised to a record value of currently 15.804, which represents an increase of 27% compared to 2018. Overall the number of downloaded articles nearly doubled within the last 12 months. Figure 1 shows this continuing and lasting trend in a striking way. On the occasion of our 5th anniversary in 2019, we invited our executive advisory board members to contribute articles for a celebratory series to be published in a continuously expanding virtual issue (https://onlinelibrary.wiley.com/doi/toc/10.1002/(ISSN)2198-3844.AnniversaryVirtualIssue). These articles showcase outstanding achievements of leading international researchers in the field of materials science, physics and chemistry, medical and life sciences, as well as engineering. In case you are interested in getting to know our executive advisory board members on a more personal level, I would like to recommend our interview-based highlights on our website Advanced Science News (https://www.advancedsciencenews.com/tag/advanced-science-5th-anniversary/). Table 1 shows the papers with the strongest influence on the coming impact factor in 2020. These publications are mainly from energy related topics, like batteries, supercapacitors, and water splitting. Table 2, on the other hand represents those Advanced Science articles published in 2019 that received the highest Altmetric score. This number is an indication of the attention that a publication gained, with red color indicating mainstream media coverage on news platforms, yellow indicating blogs, and blue representing Twitter activities. The table nicely reflects the broad topical scope of our journal with research on 3D printed hearts, or bacterial resistance and new insights into Alzheimer's disease, to more material science-oriented topics on energy storage or the worlds' thinnest gold. With all this growth, more dedicated people are needed to run the journal. I am happy to announce that we have 2 new Deputy Editors (supporting Anne Pfisterer, Prisca Henheik, and me): Ulf Scheffler was promoted to a Deputy Editor position in Advanced Science already in summer 2019. Bo Weng from our Beijing office joins the team as a new Deputy Editor for the new year. This growing team is happy to receive feedback and suggestions, and of course looking forward to an interesting and successful new year full of exciting research submitted to Advanced Science. Within only a few years, Advanced Science has evolved into an impactful, well-known, and eminently respectable journal that publishes the best international research from all areas of natural science. This would certainly not have been possible without the tremendous support by our readers, executive board members, reviewers, and authors. We would like to thank you and we are looking forward to a great future. On behalf of the whole editorial team,

As change has become the norm in today’s turbulent age, developing organizational change capacity that helps to maintain daily operations while adopting (and adapting) change on a continual basis is vital to survival and long-term success. While organizations often hire external consultants to assist them with change initiatives, the use of internal consultants (ICs) offers many advantages and benefits to the organization in developing such capabilities. Although ICs have been characterized as the “poor cousin” of their external counterparts, they can be a vital organizational resource for developing change capacity through their ability to play multiple roles, which in turn, shape and impact different organizational dimensions and capabilities. In order to be effective in these roles, ICs must have an understanding of the different approaches to change and their strengths and inherent weaknesses, especially within the specific context of their organization. Drawing on experience as an IC and reflecting on the literature, the paper addresses the roles and responsibilities of ICs with respect to conceptualizing and implementing organizational change, and developing the organization’s capacity to change, as needed, on a continual basis. In doing so, it contributes to the literature on the organizational potential of ICs, drawing out their roles and responsibilities and how they can help organizations build their change capacity.

Pharmaceutical companies make payments to physicians such as compensations for lecturing or consulting. Of particular, financial relationships between pharmaceutical companies and leaders of professional medical societies are concern in medical community. However, little was known about them in Japan. This study aimed to evaluate the magnitude and prevalence of personal payments to executive board members (EBMs)of 15 medical associations representing different subspecialties within the Japanese Society of Internal Medicine. All EBMs of 15 medical associations representing internal medicine subspecialties were collected from each association webpage. Payments to the EBMs were extracted from the pharmaceutical companies belonging to the Japan Pharmaceutical Manufacturers Association between 2016 and 2020. We performed descriptive analysis on the payment data. Of the 353 different EBMs identified, 350 (99.2%) received one or more personal payments from the pharmaceutical companies over the 5 years. 99.2% (350) and 97.2% (343) of all EBMs received personal payments 3 years before and in the year of their board membership. A total of $70,796,014 were made to the EBMs over the 5 years. The median 5-year combined personal payments per EBM was $150,849 (interquartile range [IQR]:$73,412-$282,456). EBMs who were chairman or vice chairman of executive board received significantly larger median personal payments than those who were not ($225,685 vs. $143,885, p = 0.01 in the U test). Among the 15 societies, there were 12 (80.0%) societies with all (100%) EBMs receiving personal payments from the pharmaceutical companies. Although every society has their own conflicts of interest policy, none publicly discloses the financial relationships between pharmaceutical companies and their EBMs due to their privacy. This study demonstrated that nearly all EBMs of 15 medical associations representing internal medicine subspecialties had substantial financial relationships with the pharmaceutical companies in Japan over the past 5 years.

The infrastructures used for knowledge management in universities are important. Nowadays, higher education institutions must be innovative and have appropriate capacity to change as well as adapting with constantly changing external conditions. Therefore, the aim of the present study is to assess the relationship between infrastructures and Organizational Change Capacity (OCC) and study their status. The research has been done with survey method. The statistical population includes faculty members of University of Tehran. 167 members were selected as a sample. To collect data, a researcher-made questionnaire was used. Data analysis indicated that there is a significant and positive correlation between the knowledge management infrastructures and organizational change capacity which are totally appropriate. Based on the findings of this study if the University of Tehran has proper infrastructures, it can facilitate knowledge management. So, efficient management of knowledge can be effective on organizational change capacity.

Purpose: This research aims to study the effects of human capital orientation on employee creativity development, organizational innovation capabilities, and SME businesses' outstanding performance in Thailand. Design/Methodology/Approach: 400 SMEs businesses are the sample of this study from August to October 2020 by a mail survey procedure via the questionnaire; the database is derived from the Small and Medium Enterprise Promotion Office website in Thailand. Two hundred nineteen responses were received and usable. The structural equation model (SEM) investigated the effects of human capital orientation, employee creativity development, organizational innovation capabilities, and outstanding performance are investigated by structural equation model (SEM). Findings: The research results were found that the independent variable is human capital orientation has a direct positive influence on employee creativity development. Employee creativity development has a direct positive influence on organizational innovation capabilities, and organizational innovation capabilities have a direct positive influence on outstanding performance. Practical Implications: The results of this study point out that supporting the development of human capital orientation is an essential factor affecting creativity, organizational innovation capabilities, and outstanding firm performance which SMEs companies that are accelerating recovery, executives can apply information to benefit in the human capital development in the company. The company encourages employees to think joint initiative and create something new that is ready to cope with the organization's changes to relate with innovation and new information technology to lead the organization to survive and gain a competitive advantage. Originality/Value: This research integrates three concepts of the resource base theory, contingency theory, and dynamic capabilities that SMEs businesses use their resources to create values and competence in current situations facing threats from the external environment that severely impact their operations.

Objective: To explore the occurrence of organization capacity and to examine the relationships among the organization capacity and job satisfaction in nursing homes in China. Methods: A total of 577 participants in sixteen nursing homes in Hunan province of China were enrolled using a cluster randomized controlled trial. Staff job satisfaction was measured by Minnesota Satisfaction Questionnaire(MSQ) in short form, nursing homes’ organization capacity was assessed by Shortell’s Organization and Management Survey. One-way analysis of variance examined differences between variables. The relationship and correlation of organization capability, MSQ total score and scores in each dimension was analyzed. Results: Overall score of nursing homes’ organization capacity was 99.5±8.6(level ranking, 21–105), and MSQ score was 78.2±8.2 (level ranking, 20–100). Staff job satisfaction levels were significantly different among nursing staffs with different levels of organization capability (F=9.40, P＜0.001). Correlation analysis showed that organization capability level was positively correlated with staff job satisfaction (r=0.52, P< 0.001). And Correlation analysis showed that Working conditions (r = 0.46, P < 0.001), Leaders (r = 0.46, P < 0.001), Responsibility (r = 0.51, P < 0.001) and External reward (r= 0.42, P < 0.001) were positively associated with organization capability. Conclusion: The organization capability can be improved by active staff job satisfaction. But the job satisfaction of nursing staffs was at a moderate level. Thus effective measures such as creating a supportive work conditions, appointing suitable leaders, enhancing responsibilities and providing external reward should be considered by nursing managers to promote organization capability in nursing homes.

PurposeThis study investigates the mediating role of organizational change capacity (OCC) in the relationship between the perception of extreme contexts and firm product and process innovation, which was not empirically investigated in the literature. In addition, this study explores the moderating role of the perception of extreme contexts-related variables, which were not operationalized in ordinary firms, on the relationship between OCC and firm product and process innovation.Design/methodology/approachA questionnaire-based research was conducted to test the suggested hypotheses. The data were gathered from 90 firms during the peak period of COVID-19.FindingsThis study shows that OCC, which covers contexts, process and learning dimensions, fully mediates the relationship between the perception of extreme contexts and firm product and process innovation. Also, this study discovers that the perception of extreme contexts, including temporal ordering of extremity, the magnitude of consequences, proximity among people and operational deficiencies, positively moderate the relationship between OCC and firm product innovation.Research limitations/implicationsThis study has constraints inherited in survey design, primarily sampling and country context.Originality/valueThis study identifies, conceptualizes and operationalizes the term extreme context, conceptually argued for particular organizations/units in ordinary/mundane organization settings so far. In addition, this study extends the current understanding of how the perception of extreme contexts interacts with a firm's capability to increase innovation efforts. Further, this study shows how OCC mediates the relationship between extreme contexts and firm product and process innovation.

This article intends to examine the role of leadership styles (transformational, transactional, and laissez-faire) and employees’ trust toward organizational change capacity (OCC). Data were collected from a convenient sample of managers, coordinators, officers, community facilitators, social organizers, and activists through questionnaires. A total of 250 respondents were sent questionnaire, usable questionnaires were 204. Results revealed positive and significant relationship between transformational leadership and employees’ trust. Moreover, an insignificant relationship was found between transactional leadership and employees’ trust, whereas laissez-faire and employees’ trust were found to be negatively associated. Findings of the study also depicted a positive and significant relationship of transformational leadership and transactional leadership with OCC. However, laissez-faire was negatively associated with OCC. Results also revealed that employees’ trust mediates the relationship between leadership styles (transformational and laissez-faire) and OCC. However, employees’ trust did not mediate the relationship between transactional leadership and OCC. Finally, implications and suggestions for future research are provided.