Organisational change and workers' performance
Description
Our measurement model included five key latent constructs (organisational change, technology, leadership, culture, and workers’ performance). The assessment of the reflective measurement model includes an evaluation of its reliability and validity in relation to the latent constructs. This includes assessing the associations between the latent constructs and their observed indicators, which are displayed by the measurement model. We assessed the internal consistency reliability and convergent validity of our model with composite reliability (CR) and average variance extracted (AVE). Results indicate that CR of all the latent constructs in our model was higher than 0.70. Similarly, Cronbach α’s were all within the acceptable threshold. These results indicate that our measurement model exhibits good internal consistency. Further, an assessment of convergent and discriminant validity was carried out to substantiate the validity of our results. To establish convergent validity, we evaluated the AVE of our constructs against the threshold of 0.50. Results show that the AVEs were all above 0.50, which means that the constructs could be deemed to have convergent validity. Assessment of the structural model was based on the magnitude and significance of the path coefficients. Results of the hypotheses testing indicate that organisational change was found to have a direct significant effect on workers’ performance (H1). However, the primary focus of this study was to examine the mediating effects of technology, leadership, and culture in the relationship between organisational change and workers’ performance. Results of the direct effects of organisational change on the three mediating variables (leadership, culture and technology) were all significant lending support to H2a, H3a, H4a. Equally important is the fact that the relationship between leadership and workers’ performance, and culture and workers’ performance were all significant lending support to H3b and H4b. However, the relationship between technology and workers’ performance was not significant. We further conducted a bias-corrected bootstrapping analysis at 95% CI to estimate the indirect effect of organisational change on workers’ performance via the three mediating variables. Results confirm the existence of positive and significant mediating effects (culture and leadership), and not significant mediating effect (technology). Thus, only H3a, H3b, H4a, and H4b were supported. Finally, the direct effect of organisational change on workers’ performance reveals that leadership and culture partially mediate the relationship between organisational change and workers’ performance.
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Respondents in this study were workers in two large insurance companies operating in the politically and commercially vibrant city in Ghana, Accra. These insurance companies were chosen because of the wide range of services (motor insurance, life insurance, properties insurance, transitions) they provide to the citizens. Given that organisations often change just by altering the outlook of leaders and workers in relations to how the business operates (Kwizera et al., 2019), we selected these insurance companies as the context for our study. We first contacted the insurance companies through their human resource managers, who granted approval for the commencement of the data collection. Further, we sought the consent of the workers before allowing them to voluntarily join the study. We assured participants of confidentiality and anonymity of responses before administering the questionnaires. Overall, 313 questionnaires were distributed to participants with 301 usable questionnaires returned, which represents 96.16 per cent of response rate. Organisation change as a construct was measured with 10 items from Bouckenooghe, Devos and Van den Broeck (2009). Technology was scaled with eight items from Borg, Hedlund and Grünberg (2020). Leadership was assessed with seven items scale of how leadership affects workers’ performance as stated in Leadership Behavior Description Questionnaire (LBDQ – form XII 1962) and Judge et al. (2004). Culture was measured with seven items from the Organisational Culture Assessment Questionnaire (OCAQ; Sashkin, M. & Rosenbach, W. E., 2013). Workers’ performance was assessed with eight items from Ramos-Villagrasa et al. (2019). The responses were scored on a Likert scale with the values ranging from 1 “very poor” and 5 “very good”. The coefficient α values were 0.742, 0.804, 0.780, 0.711, and 0.867 respectively. The Partial Least Square-Structural Equation Modelling (PLS-SEM) technique was used to estimate the measurement and structural models.