What Are the Sources of Organizational Change Capability? The Role of Transformational Leadership and Organizational Justice

The paper aims to clarify the influences of transformational leadership (TL) and aspects of organizational justice on change capacity of organizations. Structural equation modelling is applied to test the relationship among the research factors based on the survey of 315 employees in 72 Vietnamese firms. The results show aspects of organizational justice act as mediating roles in the relationship between TL and organizational change capacity. TL has greater effects on innovative culture, while organizational justice has greater effects on capable champions. This study highlights the importance of building the environment of justice in an organization to link TL and organizational change capacity. This study has provided valuable initiatives and deeper insights on the new and effective pathways for firms to improve their change competence and response more successfully and rapidly towards the shift of competitive context and business environment.