Does Transformational Leadership Impact Individual Readiness for Change and Resilience with Psychological Empowerment as Mediator?

Abstract

This study explores the relationship between transformational leadership, individual readiness to change and resilience with psychological empowerment as a mediator. The data collection involves Indonesian Construction and Infrastructure companies' employees. The method used in this research was structural equation modelling (SEM). The finding showed that psychological empowerment has a significant and positive relationship to resilience and individual readiness for change and also mediated the relationship between transformational leadership to strength and personal enthusiasm for change. Transformational leadership had no direct effect on individual willingness to change and resilience significantly, but an indirect effect was gained from the role of psychological empowerment. These findings enable leaders, especially construction company leaders, to be more focused on psychological empowerment to achieve resilience and individual readiness to change. Leaders could embrace changes and reduce the rejection of evolution by subordinates by acting more as transformational leaders so the company may bounce back from crisis.