AUTHENTIC LEADERSHIP, LTO, RESISTANCE TO CHANGE, POJ, TPB, BANKING SECTOR, PAKISTAN
Abstract
Objective – This paper targets to find a connection between validate Leadership and Employee's reluctant with change in the banking sector of Pakistan which is undergoing a speedy digitalization process. The paper, based on Theory of Planned Behavior (TPB), explores long term orientation (LTO) as a mediator and comprehend organizational justice (POJ) as a peer between validate leadership and employee reluctance to change. Design and approach – The population consisted of 256 employees from four national bank branches in Pakistan and a quantitative cross sectional survey was given. Two data waves were collected and this was one month apart. To test the proposed moderated mediation model, hierarchical regression analysis and bootstrapping (PROCESS macro, 5,000 resamples) were performed. Findings – Results of the study revealed that authentic leadership was strongly connected to reducing defiant to change from the perspective of the employees. Some of this is facilitated through LTO or long-term orientation, which are the mindsets of authentic leaders who have a forward-thinking approach that reduces resistance. Furthermore, the relationships between AL and LTO, and AL and resistance to change are moderated by the perceived organizational justice, with more intense relationship between AL and resistance to change at high POrJ levels. Originality/value – This study has three original and valuable contributions. Firstly, it applies the TPB model as a way of understanding the cognitive processes that decrease resistance to change when an authentic leader is present, instead of social exchange mechanisms. Secondly, it presents long-term orientation as a new mediation mechanism that is little explored in change management literature, which is a cognitive construct. Third, it highlights the boundary condition of perceived organizational justice in banking sector change contexts in the emerging economy, culturally sensitive inputs into the international leadership literature.
Keywords: Authentic leadership, LTO, Resistance to change, POJ, TPB, Banking Sector, Pakistan.
