Moderating effect of environmental dynamism on leadership practices and employees’ response to change in South Africa

Abstract

PURPOSE : The environment has become increasingly dynamic, characterised by hyper turbulence and high-velocity. While research has confirmed the influence of leadership on the effectiveness of change, the author knows less about how increased environmental dynamism influences the relationship. This study aims to investigate how this relationship is impacted under highly uncertain and dynamic external conditions. DESIGN/METHODOLOGY/APPROACH : To investigate the moderating effect of environmental dynamism on leadership practices and employees’ response to change, 1,536 employees’ survey responses were analysed from various organisations in South Africa. Moderator regression models were used to examine relationships. FINDINGS : Environmental dynamism has a slight significant strengthening effect on the relationship between leadership practices and response to change, with regard to commitment to the change; efficacy, that is, the belief in whether the change will lead to the efficacy of the organisation; and valence or attractiveness of the change. However, no significant positive moderator effect on the impact of leadership practices on active support for change. Tenure as control variable also did not have a significant influence on the model. PRACTICAL IMPLICATIONS : Organisations must take note that under dynamic conditions: employees’ belief about the efficacy of change is influenced by leadership practices, but not the active support for the change. Leadership must, thus, check whether employees’ positive responses are indeed going over in action to implement change. ORIGINALITY/VALUE : This study contributes an important moderator effect: the more dynamic the environment, the greater the impact leadership practices have on employee response to change.