Middle manager capabilities and organisational performance: the mediating effect of organisational capacity for change

Abstract

PurposeThis study aims to investigate the mechanism that transforms middle manager capabilities (MMCs) into organisational performance (OP). This study proposes that organisational capacity for change (OCC) might mediate the relationship between MMCs and OP.Design/methodology/approachThe proposed hypotheses were tested using data derived from a survey distributed to 89 heads of department of 34 subjects from the 11 top universities in Indonesia.FindingsThe findings indicate that MMCs positively influence OCC and OP and that OCC positively influences the OP. Furthermore, the authors found that OCC mediates the positive effect of MMCs on OP.Originality/valueThe authors empirically investigated the hypothesis that MMCs, in the context of higher education, play a crucial role in determining OCC and OP. Furthermore, the capacity of organisations to adapt to the changing environment mediates the capabilities of the middle managers in relation to OP. In addition, the authors empirically investigated OCC in three dimensions (learning, process and context) that were previously only proposed and discussed conceptually.

Middle Managers’ Cognitive Styles, Capacity for Change, and Organizational Performance

“…Further, they described the knowing style as liking complex problems if they can find a clear and rational solution, and, thus, prefer to interact with others in a straightforward and rational way. The knowing style is preferably linked with all dimensions of the organizational capability for change, particularly learning the problems and solutions, communicating it in a transparent way as part of the change process, and incrementally developing the trust among leaders and members as part of the change context (Sukoco et al, 2021a; Zhao & Goodman, 2018). Further, Kor and Mesko (2013) developed a new model requiring beliefs that can validate the reality of the data and facts as a basis for confidence in the decision to change strategy.…”

“…Learning refers to the ability of an organization to acquire information and knowledge continuously on improving their capability (Zhao & Goodman, 2018). By learning, it enables the organizations to facilitate and accelerate the change initiatives (Klarner et al, 2008) and develop change strategies that allows the organization to sustain their competitive advantage (Calantone et al, 2002; Sukoco et al, 2021a).…”

“…Finally, the mediating role of OCC between cognitive styles of middle-level managers and public organizations’ performance is examined. While previous studies mostly been conducted in the context of profit-oriented organizations (Judge & Elenkov, 2005; Judge et al, 2009), service organizations (Heckmann et al, 2016; Judge & Douglas, 2009) and non-profit oriented organizations in the health sector (Klarner et al, 2008; Zhao & Goodman, 2018), or higher education organizations (Sukoco et al, 2021a, 2021b).…”

“…Third, we argue that OCC serves as a transforming mechanism for middle-level managers’ cognitive styles and organizational performance. Majority of existing studies have conducted in the profit organizations (e.g., Heckmann et al, 2016; Judge & Elenkov, 2005) and public organizations (Sukoco et al, 2021a; Zhao & Goodman, 2018).…”

“…Having dynamic capabilities is a prerequisite for successful organizational change (Teece et al, 1997) through the capacity for change—OCC (Meyer & Stensaker, 2006). Previous studies indicate that OCC enables organizations to change effective and efficiently (Čirjevskis, 2017) which improves their performance (Heckmann et al, 2016; Sukoco et al, 2021a). Further, OCC enables organizations to be proactive in responding to market opportunities (Judge & Elenkov, 2005).…”