Organizational change capacity and organizational performance: An empirical analysis on an innovative industry

Abstract

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.

Citation

ramezan, m., Sanjaghi, M.E. and Rahimian Kalateh baly, H. (2013), "Organizational change capacity and organizational performance: An empirical analysis on an innovative industry", Journal of Knowledge-based Innovation in China, Vol. 5 No. 3, pp. 188-212. https://doi.org/10.1108/JKIC-07-2013-0012