Determinants of Employees’ Openness to Change: Insights from Service and Manufacturing Sectors of Pakistan

Abstract

Purpose: The volatile, uncertain, complex, and ambiguous (VUCA) world environment has forced organizational leaders more than ever to adopt new leadership styles in order to bring sustainable changes. This study tends to examine the impact of authentic leadership and symmetrical communication on employees' openness to change. In doing so, the study also illustrates the mediating character of organizational trust.  Design/Methodology/Approach: A self-administrated questionnaire based on a Five-point Likert scale was used to record the perceptions of top-level and middle-level managers from the services and manufacturing sectors of Pakistan. Data were analyzed through Partial least squares structural equation modelling (PLS-SEM) technique in SmartPLS version 3.2.9. Findings: Results of this study reveal that authentic leadership promotes organizational trust among the individuals at the workplace, which further strengthens openness to change. Similarly, symmetrical communication also promotes corporate trust among workers. Interestingly organizational trust has been found a mediating phenomenon in this case.  Implications/Originality/Value: The study adds important insights into the literature and practically provides guidelines to tackle the change management process in organizations. The study implies that in order to perpetuate employees' susceptibility to change, an organization needs to promote authentic leadership.