Purpose ‐ The main purpose of this study is examining the relationship between organizational change capacity (OCC) and organizational performance (OP). Design/methodology/approach ‐ After extensive researches in organizational literature about change andperformance, the OCC model from Judge and Douglas consists of eight dimensions (trustworthy leadership, involved mid-management, capable champions, innovative culture, trusting followers, systems thinking, accountable culture, and effective communication), and the OP model from Lee consistsof six dimensions (stakeholders' satisfaction, organizational communication, organizational growth, strategic performance, knowledge management, and team collaboration); were considered. In order to test the hypothesis, a series of 130 qualified employees in a knowledge-based organizationwere questioned. The measurement tool was a two-part questionnaire (OCC and OP). Validity of questionnaire well approved based on face validity method by experts, specialists and professors of management. Using the results of pre-test, Cronbach's a was showed the very high reliability.Findings ‐ Moreover, the results of regression analysis showed that regression line ascribes changes in dependent variable (OP) to independent variable (OCC). It means that high percentage of change in OP (77.3 percent) will be explainable and predictable with OCC. Then, withutilizing of parametric and non-parametric tests, the relationship between OCC and OP; and between components of OCC and OP was investigated. Finally, Pearson and Spearman correlation tests results confirmed the significant relationships. Overall, the results of this study show the significant,positive, strong relationship between OCC and OP. Originality/value ‐ As not many studies have been done about the impact of organizational change on OP, the paper's findings will be useful to assess the adaptation ability of organization with changing environment and the impactof this adaptation on OP.
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FAQs
Innovation promotes changes within public-sector organizations. And organizational innovation implements unusual practices (Altshuler & Zegans 1997) and new ideas that recognizes a practical impact through new changes within the organization (Hartley 2005).
What is the concept of organizational change capacity? ›
Organizational capacity for change (OCC) is the overall capability of an organization, to prepare for, or to respond to, an increasingly volatile and changeable environment. Every person has a capacity for change; it does not matter if the change is positive or negative, personal, or professional.
How does innovation affect organizational change? ›
It is innovation that leads to exciting changes in the products and services that an organization provides, the processes it employs to provide them, and the experience of its customers. Innovation can have a dramatic impact on an organization.
What are the 8 dimensions of organizational capacity for change? ›
Design/methodology/approach – After extensive researches in organizational literature about change and performance, the OCC model from Judge and Douglas consists of eight dimensions (trustworthy leadership, involved mid-management, capable champions, innovative culture, trusting followers, systems thinking, accountable ...
What is the greatest effect of innovation in an organization? ›
Innovation can result in increased productivity as you find ways to improve existing processes, streamline operations, and implement new forms of technology. Better equipped to deal with changes.
What is the relationship between innovation and performance? ›
The traditional explanation for the positive relationship between firm level innovation and firm performance rests on argued that innovative new products when first introduced to the market face limited direct competition and, as a result, allow firms to enjoy relatively high profits.
What are the three ingredients of organizational capacity for change? ›
This overall capability is multidimensional, and it comprises three ingredients: (a) human skill sets and resources, (b) formal systems and procedures, and (c) organizational culture, values, and norms.
What are the five dimensions of organizational capacity? ›
The five dimensions are resources, infrastructure, knowledge and skills, culture and climate, and engagement and partnership.
What is an example of organizational capacity? ›
Examples of capacity building efforts could include training employees on new skills or technologies, establishing formal management systems and processes, developing communication plans or policies that support collaboration among staff members, investing in research and development activities etc.
What are the organizational factors influencing innovation? ›
Firstly, there are 9 important factors that impact on an organisation's ability to manage innovation, namely; management style and leadership, resources, organisational structure, technology, knowledge management, corporate strategy, employees, and the innovation process.
Innovation allows organizations to adopt agile practices, while change management ensures that the workforce can seamlessly adapt to new strategies and technologies. Cost Efficiency: Innovation often brings about cost-effective solutions.
What are the 7 C's of organizational change? ›
Figliuzzi identified the seven Cs as code, conservancy, clarity, consequences, compassion, credibility and consistency. Code means understanding how you and your team conduct yourselves — what you do and what you don't do, how you do it, and so on.
What is organizational change capacity? ›
organizational capacity for change (OCC), which is defined as a combination of managerial and organizational capabilities that allows an enterprise to adapt more quickly and effectively than its competition to changing situations.
How does innovation improve performance? ›
Innovation performance is innovation that improves the significance, usefulness, or performance of products or services. It is innovation with a clear purpose. Innovation that accomplishes an intentional goal. This is innovation that hits the bulls-eye for product, service, or company improvement.
How does innovation benefit an organization? ›
Advantages of innovation in business
increased competitiveness. improved brand recognition and value. new partnerships and relationships. increased turnover and improved profitability.
How innovation can affect an organization's activity? ›
Here are four concrete benefits innovation can bring to your company.
- Improve sales and customer relationships. Failing to improve your products and services can put you at risk of losing customers to more innovative competitors. ...
- Reduce waste and costs. ...
- Boost your market position. ...
- Improve employee relations.
Innovation in the workplace is important because it challenges employees to think differently, which can inherently promote growth. If your company continues to take the same approaches and avoids trying new things, they may miss important opportunities.
