Organizational Change, Readiness, and Employee Performance: The Mediating Role of Employee Commitment in Microfinance Banks of Sindh, Pakistan

Abstract

Regulatory reform, digitalization and competition have all contributed to organisational change in the banking especially microfinance sector in Pakistan becoming a regular occurrence. The purpose of this study to investigate the relationship between organizational change, employee readiness for change, employee performance and employee commitment as a mediating process among the employee of the microfinance banks of Khairpur city of Sindh, Pakistan. The study adopts quantitative research design with a cross-sectional research approach due to the study's characteristics and the micro finance bank sample size of 173 employees drawn from a population of 310 employees through Krejcie and Morgan's (1970) procedure in Khairpur from the different branches of the micro finance bank. A structured questionnaire with previously validated scales was designed, and the proposed mediation model is tested by implementing Hayes's (2018) PROCESS macro logic (Model 4). A computer-simulated dataset of 173 cases was created and analyzed instead of data from the field, to demonstrate the intended analytical procedure and reporting format, and the findings indicate that organizational change, as well as readiness for change, are positively correlated with employee performance; employee commitment partly mediates both relationships. The following results are simulated and only conclusions based on the results of a real survey administration will be considered as empirical. Implications, Limitation and directions for future research are discussed.