Change-oriented Leadership in the Context of Transitioning to Strategic Autonomy

Growing geopolitical tensions have transformed the business landscape , driving domestic firms toward an era of strategic independence (Yale School of Management, 2024). This research examines a well-known Eastern European consulting firm that, after transitioning to an independent entity, was confronted with a new personnel assessment system. This shift necessitates a comprehensive understanding of employee readiness and resistance — fundamental concepts in change management literature (Armenakis et al., 1993). Our study incorporated quantitative methods to divide employees according to their readiness for the new system (k-means clustering, factor analysis, and discriminant analysis). At the same time, it employed qualitative research methods to explore motives and attitudes behind employee resistance or readiness (Choi & Ruona, 2011). Based on their adaptability to the new system, we identified three distinct clusters of employees: “Active Supporters,” “Cautious Appraisers,” and “Conservative Skeptics,” allowing us to pinpoint specific non-readiness factors and formulate tailored strategies to address them. The findings suggest that emotional involvement, openness to change, and previous experiences with similar practices significantly influence employee readiness. To mitigate these issues, the paper proposes a strategy rooted in psychological safety and differentiated error management, as advocated by Edmondson (2023), to enhance the organization's learning capability and adaptability. Our results align with previous research indicating that stronger attitudes, often based on personal experience, significantly predict behavior (Eagly & Chaiken, 1993). We found that the initial uncertainty of organizational changes served as a major stressor, underscoring the importance of understanding and conceptualizing changes (Kramer, 2015). Unlike Schwartz (1994), the value orientation of “Tradition” did not exert significant influence, but values of “Autonomy,” “Stimulation,” “Achievement” (consistent with Sortheix & Lönnqvist, 2014), “Hedonism,” and “Power” positively impacted employee openness to changes. The implications of this study extend to other Eastern European companies undergoing similar transitions, providing guidance on how change can be managed effectively in the context of transitioning to strategic autonomy.