Dynamic managerial capability, trust in leadership and performance: the role of cynicism toward change

ABSTRACT

The leader plays a crucial role in an organization, particularly during periods of change. Based on dynamic capability theory, this paper examined the relationship between dynamic managerial capabilities (DMC) and organizational performance, moderated by cynicism toward change and mediated by trust in leadership. The methodology used is a cross-sectional study with multisource data from the top 11 universities in Indonesia. In total, 2,047 respondents, either middle managers or lecturers, participated in this study. The research employed SPSS to test the hypotheses; the findings pointing to the moderated mediation effect of cynicism toward change, which affects the magnitude of the mediation relationship between trust in leadership and DMC as it relates to organizational performance. This study contributes to existing literature on leadership in relation to execution change strategy, particularly concerning how middle managers, with their dynamic managerial capabilities, build trust in leadership, particularly when there is cynicism, which affects organizational performance.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the Kementerian Riset Teknologi Dan Pendidikan Tinggi Republik Indonesia [Indonesian Research Collaboration 2019,Top Tier Journals Grant 2020].

Notes on contributors

Yetty Dwi Lestari

Yetty Dwi Lestari ([email protected]) is an Assistant Professor at Department of Management, Faculty of Economics and Business, Airlangga University. Her major research interest include Dynamic Capabilities and Supply Chain Management. She has several published papers, such as International Journal of Productivity and Performance Management and Journal of Organizational Effectiveness, among others.

Fiona Niska Dinda Nadia

Fiona Niska Dinda Nadia ([email protected]) is a Doctoral Student at Department of Management, Faculty of Economics and Business, Airlangga University. Her major research interest include Organizational Change, Qualitative Research and Strategic Management. She has several published papers, such as International Journal of Educational Management, among others.

Badri Munir Sukoco

Badri Munir Sukoco ([email protected]) is a Professor at Department of Management, Faculty of Economics and Business, Airlangga University. He received his PhD from National Cheng Kung University. His major research interests include Organizational Change Capabilities. He has published numerous papers, such as Higher Education, Computers in Human Behavior, International Journal of Human Resource Management, R&D Management, Expert Systems with Applications, among others.

David Ahlstrom

David Ahlstrom ([email protected]) is a Professor in Department of Management at The Chinese University of Hong Kong. He received a PhD in Management and International Business after working in government and the computer industry. His research includes managing in Asia, and innovation and entrepreneurship. He has published over 120 peer-reviewed articles in journals such as the Strategic Management Journal, Academy of Management Review, Journal of International Business Studies, Journal of Management Studies, Journal of Business Venturing, Entrepreneurship Theory and Practice, the Brown Journal of World Affairs and The Wall Street Journal.

Sunu Widianto

Sunu Widianto ([email protected]) is an Assistant Professor at Department of Management, Universitas Padjadjaran. He received his PhD from University of Twente, Netherland. His research interest is organizational behavior and multilevel modelling. He has published his work at the Journal of Organizational Effectiveness, Journal of Asia Business Studies, International Journal of Business and Globalisation, among others.

Ely Susanto

Ely Susanto ([email protected]) is a lecturer at Department of Public Policy and Management, Faculty of Social and Political Sciences, Universitas Gadjah Mada, Yogyakarta, Indonesia. He received his PhD from National Cheng Kung University, Taiwan. His current research interests include emotional intelligence, conflict management, innovative work behavior and bureaucratic reform. He has published his work at the International Journal of Conflict Management, Journal of Applied Psychology, International Journal of Human Resource Management, among others.

Reza Ashari Nasution

Reza Ashari Nasution ([email protected]) is an Associate Professor at the School of Business and Management, Institut Teknologi Bandung. He received his PhD from University of Twente, The Netherlands. His major research interests cover competitive strategy, digital transformation and customer experience. He has published numerous papers in strategy and marketing journals.

Anas Miftah Fauzi

Anas Miftah Fauzi ([email protected]) is a Professor at School of Postgraduate Studies, IPB (Bogor Agricultural Institute) University. He received his PhD from School of Biosciences, Kent University, UK. His major research interests sustainability management. He serves many years in managerial position, such as Vice Rector, at his institution.