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Managing change in transnational companies: does cultural distance matter?

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<mark>Journal publication date</mark>2/03/2020
<mark>Journal</mark>European Journal of International Management
Issue number3
Volume14
Number of pages30
Pages (from-to)494 - 523
Publication StatusPublished
<mark>Original language</mark>English

Abstract

Employees commitment to change is an important prerequisite for change management success. We test how direct managers transformational leadership and top management communication impact employees commitment to change and how, in a transnational organisation, these relationships are moderated by cultural distance. We measure cultural distance using GLOBE (Global Leadership and Organizational Behaviour Effectiveness Research) dimensions. The results of the study in a German technology company (939 employees, operating in 30 countries) show that transformational leadership and top management communication are positively related to affective and normative commitment to change. Cultural distance positively moderates the direct managers transformational leadershipaffective commitment relationship and reduces the influence of top management communication on normative commitment to change.