How External Environment and Internal Organization contribute in Commitment to Change? (Study at organizational change in state owned organizations in Indonesia)

Wustari Mangundjaya () and Budi Soetjipto ()
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Wustari Mangundjaya: Faculty of Psychology Universitas Indonesia
Budi Soetjipto: Faculty of Economics Universitas Indonesia

No 100006, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The success of organizational change was influenced by many factors, and some of them are the conditions of external environments and internal organization. This study is trying to identify the role and contribution of employee?s perception about external environment and internal organization in relations with commitment to change. The study was conducted at financial state owned organizations with 539 respondents, using Organizational Trust and Organizational Task Environment as data collection tools. The study revealed that both perceptions of employee?s about external environment and internal organization, (organizational trust), have positive and significant correlation and contributions in commitment to change. The results also showed that organizational trust have more contribution to commitment to change, compares to organizational task environment. The implications of the study can be used to strengthen the understanding about the process of organizational change, through increasing employee?s commitment by boosting the two variables, namely organizational trust, and positive perceptions about external environments, especially organizational trust. This study also important in change management, as it was understood from the previous research that leader and its leadership style is important in the success of organizational change, however in this study it showed that as organizational trust is the important variable.

Keywords: perceptions of external environment; internal organization; organizational trust; commitment to change. (search for similar items in EconPapers)
JEL-codes: L20 L29 (search for similar items in EconPapers)
Pages: 4 pages
Date: 2014-05
New Economics Papers: this item is included in nep-sea
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Published in Proceedings of the Proceedings of the 9th International Academic Conference, Istanbul, May 2014, pages 621-624

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:0100006

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