1. bookVolume 54 (2021): Issue 1 (March 2021)
Journal Details
License
Format
Journal
First Published
17 Oct 2008
Publication timeframe
4 times per year
Languages
English
access type Open Access

The Role of Transformational Entrepreneurship, Readiness to Change and Counterproductive Work Behavior in Enhancing Employee Performance

Published Online: 26 Mar 2021
Page range: 63 - 81
Received: 02 Oct 2020
Accepted: 12 Jan 2021
Journal Details
License
Format
Journal
First Published
17 Oct 2008
Publication timeframe
4 times per year
Languages
English
Abstract

Background and Purpose: The company sustainability balancing economic with social impact to coexist whilst the transformation entrepreneurship create the coexist. The purpose of this research is to better understand the consequences of transformational entrepreneurship, in terms of increasing organizational readiness for change, minimizing counterproductive work behavior and enhancing employee performance. In addition, this paper aims to comprehend the extent to which organizational readiness for change and counterproductive work behavior affect employee performance.

Methodology: The data were collected via a survey of 257 branches of a state-owned bank. The structural equation model (SEM) was used to test the proposed model.

Findings: Transformational entrepreneurship positively and significantly affect organizational readiness for change and employee performance, and negatively and significantly affect counterproductive work behavior. Moreover, the result demonstrated a significantly positive effect of organizational readiness for change on employee performance, and demonstrated a significantly negative effect of counterproductive work behavior on employee performance.

Conclusion: Point of this study is the effectiveness of transformational entrepreneurship in directly affecting employees’ performance. However, the effect transformational entrepreneurship has on readiness for change and counterproductive work behavior adds its impact on employees’ performance and based on the direct effect, readiness for comes up much more impactful than the other two. It implies how volatile and dynamics the work (internal and external) situations that having employees ready for change can help them cope with such volatility and dynamics to reach better performance.

Keywords

Anderson, J.C. & Gerbing, S.W. (1988). Structural equation modeling in practice: a review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423. https://doi.org/10.1037/0033-2909.103.3.411Search in Google Scholar

Armenakis, A, A., Harris, S.G., & Mossholder, K.W. (1993). Creating readiness for organizational change. Human Relations 1993, 46, 681-703. https://doi.org/10.1177/001872679304600601Search in Google Scholar

Baard, S. K., Rench, T. A., & Kozlowski, S. W. (2014). Performance adaptation: A theoretical integration and review. Journal of Management, 40, 48–99. http://dx.doi.org/10.1177/0149206313488210Search in Google Scholar

Bandalos, D.L. (2002). The Effects of item parceling on Goodness-of-Fit and Parameter Estimate bias in Structural Equation Modeling. Structural Equation Modeling, 9(1), 78-102. https://doi.org/10.1207/S15328007SEM0901_5Search in Google Scholar

Bateman, T.S., & Organ, D.W. (1983). Job satisfaction and the good soldier: The relationship between affect and employee “citizenship”. Academy of Management Journal, 26(1), 587–595. http://dx.doi.org/10.2307/255908Search in Google Scholar

Beer, M. (1980). Organization change and development, A systems view. Santa Monica, California: Goodyear Publishing Company, Inc. https://doi.org/10.2307/257315Search in Google Scholar

Bonini, S. & Swartz, S., (2014). Profits with purpose: How organizing for sustainability can benefit the bottom line. McKinsey on Sustainability & Resource Productivity. https://www.mckinsey.com/business-functions/sustainability/our-insights/profits-with-purpose-how-organizing-for-sustainability-can-benefit-the-bottom-lineSearch in Google Scholar

Brief, A. P., & Motowidlo,. S. J. (1986). Prosocial organizational behaviors. Academy of Management Review, 11,710-725. https://doi.org/10.5465/amr.1986.4283909Search in Google Scholar

Conway, J.M. (1999). Distinguishing contextual performance from task performance for managerial jobs. Journal of Applied Psychology, 84(3), 3–13. https://doi.org/10.1037/0021-9010.84.1.3Search in Google Scholar

Denison, D., Hooijberg, R., Lane, N., & Lief, C. (2012). Leading culture change in global organizations: Aligning culture and strategy. San Francisco: Jossey-Bass.Search in Google Scholar

Dess, G.G., & Beard, D.W. (1984). Dimensions of organizational task environments, Administrative Science Quarterly, 30, 336-349. https://doi.org/10.2307/2393080Search in Google Scholar

Environmental Performance Index (EPI) (2020). Global metrics for the environment: Ranking country performance on sustainability issues. https://epi.yale.edu/#:~:text=Welcome-,About%20the%20EPI,environmental%20health%20and%20ecosystem%20vitalitySearch in Google Scholar

Fornell, C. & Larcker, D.F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error, Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.2307/3151312Search in Google Scholar

Greenidge, D., Devonish, D., & Alleyne, P. (2014). The relationship between ability-based emotional intelligence and contextual performance and counterproductive work behaviors: A test of the mediating effects of job satisfaction. Human Performance, 27(3), 225-242. https://doi.org/10.1080/08959285.2014.913591Search in Google Scholar

Griffin, M. A., Parker, S. K., & Mason, C. (2010). Leader vision and the development of adaptive and proactive performance: A longitudinal study. Journal of Applied Psychology, 95, 174–182. https://doi.org/10.1037/a0017263Search in Google Scholar

Hair, J., Black,W., Babin, B.J., Anderson.R., & Tatham, R. (2014). Multivariate data analysis. A global perspective. India: Pearson Prentice Hall.Search in Google Scholar

Helmy, I, Adawiyah, W.R., & Setyawati, H. A. (2020). Fostering Frontline Employees’ Innovative Service Behavior: The Role of Workplace Friendship and Knowledge Sharing Process. Organizacija, 53(3), 185-197. https://doi.org/10.2478/orga-2020-0012Search in Google Scholar

Herrera, A.M. & Lora, E., (2005). Why so small? Explaining the size of firms in Latin America. World Economy, 28(7), 1005-1028. https://doi.org/10.1111/j.1467-9701.2005.00718.xSearch in Google Scholar

Hesketh, B., & Neal, A. (1999). Technology and performance. In D.R. Ilgen & E.D. Pulakos (Eds) The changing nature of performance: Implications for staffing, motivation, and development, (pp. 21–55). San Francisco, CA: Jossey-Bass.Search in Google Scholar

Holt, D.T., Armenakis, A., Harris, S.G., & Field H.S. (2007). Toward a comprehensive definition of readiness for change: A review of research and instrumentation. In W.A. Pasmore & R.M. Woodman (Eds,), Research in organizational change and development (pp.289-336). Oxford, England: Elsevier. https://doi.org/10.1016/S0897-3016(06)16009-7Search in Google Scholar

Hollenbeck, J. R., LePine, 3. A., & Ilgen, D. R. (1996). Adapting to roles in decision-making teams. In K. R. Murphy (Ed.), Individual differences and behavior in organizations (pp. 300-333). San Francisco: Jossey-Bass.Search in Google Scholar

Hunt, E. (1996). When should we shoot the messenger? Issues involving cognitive testing, public policy, and the law. Psychology, Public Policy and Law, 2, 486—505. https://doi.org/10.1037/1076-8971.2.3-4.486Search in Google Scholar

Jöreskog, K. G. (2000). Latent Variables Scores and Their Uses, available at http://www.ssicentral.com/lisrel/advancedtopics.htmlSearch in Google Scholar

Jöreskog, K. G., Dag Sörbom, D. & Walentin, F.Y. (2006), Latent Variables Scores and observational Residuals, Available at https://www.researchgate.net/publication/254378812_Latent_Variable_Scores_and_Observational_ResidualsSearch in Google Scholar

Kelloway, E. K., Francis, L., Prosser, M., & Camerson, J. E. (2010). Counterproductive work behavior as protest. Human Resource Management Review, 20, 18-25. https://doi.org/10.1016/j.hrmr.2009.03.014Search in Google Scholar

Klandermans, B. (1997). The social psychology of protest. Oxford: Blackwell.Search in Google Scholar

Klandermans, B. (2002). How group identification helps to overcome the dilemma of collective action. American Behavioral Scientist, 45, 887–900. https://doi.org/10.1177%2F0002764202045005009Search in Google Scholar

Koopmans L., Bernaards C.M., Hildebrandt V.H., van Buuren S., van der Beek A.J., de Vet H.C. (2014). Improving the individual work performance questionnaire using Rasch analysis. Journal of Applied Measurement, 15: 160–175.Search in Google Scholar

Lewin, K. (1947). Frontiers in group dynamics: Concept, method and reality in social science; social equilibria and social change. Human Relations, 1, 5–41. http://dx.doi.org/10.1177/001872674700100103Search in Google Scholar

Lewin, K. (1951). Field theory in social science; selected theoretical paper (1st ed.). New York: Harper. Marmer, 2012, p. 2. https://doi.org/10.1177%2F000271625127600135Search in Google Scholar

Maas, G., Lockyer, J., Jones, P. (2019). The journey of transformational entrepreneurship. @ The Author(s) 2019, G. Maas,P. Jones (eds), Transformational Entrepreneurship Practices, https://doi.org/10.1007/978-9-030-11524-1_1Search in Google Scholar

Mass, G. & Jones, P. (2019). Transformational Entrepreneurship Practices: Global Case Studies. Palgrave Macmillan. https://doi.org/10.1007/978-3-030-11524-1Search in Google Scholar

Marmer, M. (2012). Transformational entrepreneur-ship: Where technology meets societal impact. Harvard Business Review, 2012 (April. 23). https://hbr.org/2012/04/transformational-entrepreneursSearch in Google Scholar

McKinsey Global Survey Results. (2017). Available at https://www.mckinsey.com/business-functions/sustainability/our-insights/sustainabilitys-deepening-imprintSearch in Google Scholar

Pettigrew, A. (1987), Context and action in the transformation of the firm, Journal of Management Studies, 24 (6), 649-70. https://doi.org/10.1111/j.1467-6486.1987.tb00467.xSearch in Google Scholar

Pradhan, Rabindra. K. & Lalatendu K. Jena. (2017). Employee Performance at Workplace Conceptual Model and Empirical Validation. Business Perspectives and Research, 5(1) 1-17. https://doi.org/10.1177/2278533716671630Search in Google Scholar

Prochaska J.O., Velicer W.E., Rossi J.S., Goldstein MG, Marcus B.H., RaJiowski W., Eiore C., Harlow L.L., Redding C.A., Rosenbloom D., Rossi S.R. (1994). Stages of change and decisional balance for 12 problem behaviors. Health Psychology. 13:39–46. https://doi.apa.org/doi/10.1037/0278-6133.13.1.39Search in Google Scholar

Rhemtulla, M. (2016). Population performance of parceling strategies under measurement and Structural Model Misspecification. Psychological Methods, 21(1), 348 – 368. https://doi.apa.org/doi/10.1037/met0000072Search in Google Scholar

Rigdon, E., Sarsted M. & Ringle C. (2017). On Comparing Results from CB-SEM and PLS-SEM: Five Perspectives and Five Recommendation. Marketing-ZFP. 39(3), 4-16. http://dx.doi.org/10.15358/0344-1369-2017-3-4Search in Google Scholar

Sackett, P. R. (2002). The structure of counterproductive work behaviors: Dimensionality and relationships with facets of job performance. International Journal of Selection and Assessment, 10, 5–11. http://dx.doi.org/10.1111/1468-2389.00189Search in Google Scholar

Schoar, A. (2010). The divide between subsistence and transformational entrepreneurship. Innovation Policy and the Economy 10(1), 57-81. The University of Chicago Press. http://dx.doi.org/10.1086/605853Search in Google Scholar

Shane, S. & S. Venkataraman (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25, 217-226. https://doi.org/10.2307/259271Search in Google Scholar

Shaw, E., Carter, S. (2007). Social entrepreneurship: Theoretical antecedents and empirical analysis of entrepreneurial processes and outcomes. Journal of Small Business and Enterprise Development, 14(3), 418-34. http://dx.doi.org/10.1108/14626000710773529Search in Google Scholar

Starik, M., & Rands, G. P. (1995). The role of corporations in achieving ecological sustainability: Evaluating the Environmental Performance of Corporations. Academy of Management Review, 20(4), 908-935. http://dx.doi.org/10.1108/14626000710773529Search in Google Scholar

Spector, B.A. (1989), From bogged down to fired up: inspiring organizational change. Sloan Management Review, Summer, pp. 29-34, http://www.simpsonexecutivecoaching.com/pdf/orgchange/bogged-down-fired-up-inspiring-organizational-change-bert-spector.pdfSearch in Google Scholar

Virmani, A., Lepineux, F. (2016). Aravind eye care system as Transformational entrepreneurship: Spiritual roots, Multi-dimensional impact. Philosophy of Management, 15, 83-94. http://dx.doi.org/10.1007/s40926-016-0032-zSearch in Google Scholar

Viswesvaran, C., Schmidt, F. L., & Ones, D. S. (1999). The role of halo error in interdimensional ratings: The case of job performance ratings examined via meta-analysis. Unpublished manuscript. In N. Anderson, D. S. Ones, H. K. Sinangil, & C. Viswesvaran (Eds.), Handbook of Industrial, Work, & Organizational Psychology Volume 1: Personnel Psychology (pp. 145-164). London, UK: Sage Publications.Search in Google Scholar

Weiner, B.J. (2009). A theory of organization readiness for change. Implementation Science, 4, 67 https://doi.org/10.1186/1748-5908-4-67Search in Google Scholar

Weeks, W. A., Roberts, J., Chonko, L. B., & Jones, E. (2004). Organizational readiness for change, individual fear of change, and sales manager performance: An empirical investigation. Journal of Personal Selling & Sales Management, 24, 7–18. https://doi.org/10.1080/08853134.2004.10749012Search in Google Scholar

Weber, Olaf. (2017). Corporate sustainability and financial performance of Chinese banks. Sustainability Accounting, Management and Policy Journal, 8, (3), 358-385. https://doi.org/10.1108/SAMPJ-09-2016-0066Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo