Organizational culture types and individual readiness for change: evidence from Indonesia

*Aktsar Hamdi Tsalits scopus  -  Universitas Diponegoro, Indonesia
Gugup Kismono  -  Universitas Gadjah Mada, Indonesia
Received: 15 Dec 2019; Published: 31 Dec 2019.
Open Access Copyright 2019 Diponegoro International Journal of Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Citation Format:
Article Info
Section: Articles
Language: EN
Full Text:
Statistics: 72 48

This study aims to examine the effect of organizational culture types on individual readiness for change in Indonesia as a country with high collectivism. Specifically, this study examines the effect of four types of culture namely clan, adhocracy, market, and hierarchy on individual readiness for change. The sample of this study was 264 employees of XYZ Company, a family company in Indonesia that made changes by releasing part of its shares into the stock market. Test results using simple regression support the hypothesis that clan culture and adhocracy have a positive effect on individual readiness for change. However, the influence of market culture and hierarchy on individual readiness for change was also found to be positive instead of negative as hypothesized. Discussions and suggestions for future research are presented.
organizational culture types; clan culture; adhocracy culture; market culture; hierarchy culture; individual readiness for change

Article Metrics:

  1. Aiken, M., & Hage, J. (1971). The organic organization and innovation. Sociology, 5(1), 63-82.
  2. Armenakis, A. A., Harris, S. G., & Mossholder, K. W. (1993). Creating readiness for organizational change. Human relations,46(6), 681-703.
  3. Bommer, W. H., Rich, G. A., & Rubin, R. S. (2005). Changing attitudes about change: Longitudinal effects of transformational leader behavior on employee cynicism about organizational change. Journal of Organizational Behavior, 26(7), 733-753.
  4. Cameron, K.S. & Quinn, R.E. (1999). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Reading, MA: Addison-Wesley.
  5. Cameron, K.S. & Quinn, R.E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. San Fransisco: Jossey-Bass.
  6. Cassidy, S., & Eachus, P. (2002). Developing the computer user self-efficacy (CUSE) scale: Investigating the relationship between computer self-efficacy, gender and experience with computers. Journal of Educational Computing Research, 26(2), 133-153.
  7. Choi, M., & Ruona, W. E. (2010). Individual readiness for organizational change and its implications for human resource and organization development. Human Resource Development Review, 10(1), 46-73.
  8. Choi, M. (2011). Employees' attitudes toward organizational change: A literature review. Human Resource Management,50(4), 479-500.
  9. Clegg, C., & Walsh, S. (2004). Change management: time for a change!. European Journal of Work and Organizational Psychology, 13(2), 217-239.
  10. Damanpour, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of management journal, 34(3), 555-590.
  11. Eby, L. T., Adams, D. M., Russell, J. E., & Gaby, S. H. (2000). Perceptions of organizational readiness for change: Factors related to employees' reactions to the implementation of team-based selling. Human relations, 53(3), 419-442.
  12. Gist, M. E., Schwoerer, C., & Rosen, B. (1989). Effects of alternative training methods on self-efficacy and performance in computer software training. Journal of applied psychology,74(6), 884.
  13. Haffar, M., Al-Karaghouli, W., & Ghoneim, A. (2014). An empirical investigation of the influence of organizational culture on individual readiness for change in Syrian manufacturing organizations. Journal of Organizational Change Management,27(1), 5-22.
  14. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E. (7th Eds.). 2010. Multivariate Data Analysis. New Jersey: Pearson Education.
  15. Hanpachern, C., Morgan, G. A., & Griego, O. V. (1998). An extension of the theory of margin: A framework for assessing readiness for change. Human Resource Development Quarterly, 9(4), 339.
  16. Hobfoll, S. E. (1989). Conservation of resources: A new attempt at conceptualizing stress. American psychologist, 44(3), 513.
  17. Hobfoll, S. E. (2001). The influence of culture, community, and the nested‐self in the stress process: advancing conservation of resources theory. Applied psychology, 50(3), 337-421.
  18. Hobfoll, S. E. (2011). Conservation of resource caravans and engaged settings. Journal of occupational and organizational psychology, 84(1), 116-122.
  19. Hofstede, G. (1983). National cultures in four dimensions: A research-based theory of cultural differences among nations.International Studies of Management & Organization, 13(1-2), 46-74.
  20. Holt, D. T., Armenakis, A. A., Feild, H. S., & Harris, S. G. (2007). Readiness for organizational change the systematic development of a scale. The Journal of applied behavioral science, 43(2), 232-255.
  21. Hofstede G., Hofstede G. J. & Minkov M. (2010). Cultures and organizations: software of the mind: intercultural cooperation and its importance for survival, 3rd ed., New York: McGraw Hill.
  22. Howard, L. W. (1998). Validating the competing values model as a representation of organizational cultures. The International Journal of Organizational Analysis, 6(3), 231-250.
  23. Jarvis, C. B., MacKenzie, S. B., & Podsakoff, P. M. (2003). A critical review of construct indicators and measurement model misspecification in marketing and consumer research. Journal of consumer research, 30(2), 199-218.
  24. Jones, R. A., Jimmieson, N. L., & Griffiths, A. (2005). The impact of organizational culture and reshaping capabilities on change implementation success: The mediating role of readiness for change. Journal of Management Studies, 42(2), 361-386.
  25. Jung, D. D., Wu, A., & Chow, C. W. (2008). Towards understanding the direct and indirect effects of CEOs' transformational leadership on firm innovation. The leadership quarterly, 19(5), 582-594.
  26. Kwan, P., & Walker, A. (2004). Validating the competing values model as a representation of organizational culture through inter-institutional comparisons. Organizational Analysis, 12(1), 21-37.
  27. Kwantes, C. T., & Boglarsky, C. A. (2007). Perceptions of organizational culture, leadership effectiveness and personal effectiveness across six countries. Journal of International management, 13(2), 204-230.
  28. Quinn, R. E., & Rohrbaugh, J. (1981). A competing values approach to organizational effectiveness. Public productivity review, 122-140.
  29. Quinn, R. E., & Rohrbaugh, J. (1983). A spatial model of effectiveness criteria: Towards a competing values approach to organizational analysis. Management science, 29(3), 363-377.
  30. Roldán, J. L., Leal-Rodríguez, A. L., & Leal, A. G. 2012. The influence of organisational culture on the Total Quality Management programme performance. Investigaciones Europeas de Dirección y Economía de la Empresa, 18(3), 183-189
  31. Schein, E. H. (2004). Organizational Culture and Leadership. San Fransisco: Jossey Bass.
  32. Thompson, V. A. (1965). Bureaucracy and innovation.Administrative science quarterly, 1-20.