Predictors and Impact of Openness to Change in Asset Management Contract (AMC) Implementation at the Electric Power Service Company

DOI

10.2991/978-94-6463-008-4_65How to use a DOI?

Keywords

Organizational change; Job satisfaction; Individual differences; Context-specific variables; Continuance commitment

Abstract

The change strategy in asset management implementation is an effort made by the company to deal with the changing business environment. Management decisions with the asset management contract (AMC) mechanism are feared to impact employee satisfaction and employee continuance commitment. This study aims to examine (1) the effect of individual differences (self-esteem, optimism, perceived control) on employee openness in accepting changes in the reorganization of AMC implementation; (2) the effect of context-specific variables (information, participation, self-confidence) on employee openness in accepting changes in the reorganization of AMC implementation; (3) the effect of openness to change to employee job satisfaction; and (4) the effect of openness to change to continuance commitment. Data collection was done through a survey by distributing questionnaires. The subjects of this study were 155 employees from 477 employees in 3 (three) generating units. Data analysis was performed using structural equation modeling-partial least squares (SEM-PLS). The analysis results show that openness to change is successfully predicted from individual differences and context-specific variables (R2 = 0.650), and the job satisfaction and continuance commitment variables are also successfully predicted (R2 = 0.498 and 0.449). It is also found that the self-esteem, information, participation, and self-efficacy variables have positive and significant relationships to the level of openness to change. However, the optimistic variable and perceived control are found to have no significant relationship (p < 0.05). Three context-specific variables and an individual difference variable predict higher levels of acceptance of change, and lower levels of acceptance are associated with lower job satisfaction and lower employee continuance commitment.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Satpaulina
AU  - Yeni Absah
AU  - Rulianda Purnomo Wibowo
PY  - 2022
DA  - 2022/12/05
TI  - Predictors and Impact of Openness to Change in Asset Management Contract (AMC) Implementation at the Electric Power Service Company
BT  - Proceedings of the 19th International Symposium on Management (INSYMA 2022)
PB  - Atlantis Press
SP  - 511
EP  - 519
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-008-4_65
DO  - 10.2991/978-94-6463-008-4_65
ID  - 2022
ER  -