Abstract
This study explores how transformational leadership and organisational culture shape
employee responses to change in Malawian state-owned enterprises (SOEs), with a
focus on the Electricity Supply Corporation of Malawi (ESCOM) and the Southern
Region Water Board (SRWB). Drawing on data from 543 employees, the research
uses confirmatory factor analysis (CFA), structural equation modelling (SEM), and
regression analysis to examine the impact of transformational leadership and culture
on four key change outcomes: readiness for change, commitment to change, attitude
toward change, and resistance to change.
The findings show that transformational leadership positively influences organisational
culture, reinforcing its role in shaping public sector environments. Organisational
culture, particularly market and hierarchical types, is strongly linked to greater
readiness and commitment. However, transformational leadership does not moderate
the relationship between culture and change outcomes, suggesting these factors
operate independently rather than synergistically in this context.
Importantly, cognitive appraisals of change were found to be more consistent
predictors of response than emotional reactions. Resistance to change showed weak
psychometric properties and minimal association with leadership or culture, pointing
not to individual opposition but to deeper systemic issues, such as bureaucratic inertia,
reform fatigue, and institutional distrust that characterise SOEs.
The study contributes theoretically by extending Social Exchange Theory and the
Competing Values Framework into an African public sector setting. Empirically, it offers
a validated model for assessing change dynamics in organisations based in resourceconstrained
countries. Practically, it calls for leadership development focused on
inspiration, deliberate cultural alignment, and structural reforms that rebuild trust and
address root causes of resistance.
By grounding theory in a historically overlooked context, this research fills a critical
gap in organisational change literature and provides a practical framework for
improving change effectiveness in SOEs across developing countries.