Testing the Effect of Psychological Ownership and Organisational Justice on Employees’ Readiness to Change: Empirical Evidence from Indian IT Industry

Abstract

To survive in a volatile and uncertain business environment, organisations need to adjust, evolve and progress. The ability to quickly adapt to change gives a competitive advantage to the organisation. Therefore organisations should understand and improve various factors which predict employee readiness to change. The primary objective of this study was to assess the impact of organisational justice and psychological ownership on employee readiness to change in the Indian IT industry. A cross-sectional research design was adopted for the study, and the respondents include 211 full-time employees from different organisations in the Indian IT industry. Findings revealed that both organisational justice and psychological ownership has a positive relationship with employee readiness to change. The results of multiple linear regression also established that organisational justice and psychological ownership jointly predict employee readiness to change. The present study, grounded on the psychological theory of social exchange and social exchange theories, enriches the existing literature about employee readiness to change and offers important implications for practitioners.