The effect of change leadership on employees’ readiness to change through self-efficacy and resilience

Abstract

The merging of two different corporate cultures has risk to decrease company’s performance due to major organization changes impacting employees’ readiness to embrace and implement changes. This study aims to reveal the interaction of constructs that predict employees’ readiness to change within the employees of termination block in Indonesia’s upstream oil and gas industry. This study uses a relational research method with a quantitative approach. The 353 samples from 5071 populations are given 59 questions to measure the change leadership, employee readiness to change, self-efficacy, resilience, and trust in leader. The results show that the effect of change leadership on individual readiness to change is fully mediated by self-efficacy and resilience and moderated by trust in leader. Change leadership will basically increase confidence level (self-efficacy) in individuals toward change and motivate them (resilience) to face obstacles and challenges in the change. This will increase the individual’s readiness to change and is reinforced by employees’ trust toward leader.