Illuminating the way: the role of organizational transparency in preparing employees for change under transformational leadership

Preparing employees for organizational change presents significant challenges, yet certain factors can facilitate this process. Our study explores the influence of transformational leadership (TL) on employees’ readiness for organizational change (ROC) through a multi-theoretical lens, incorporating social cognitive theory, contingency theory, and leadership substitute theory. We specifically investigate the mediating role of a perceived action plan (PAP) in this relationship, along with the moderating impact of organizational transparency (OT). The data, collected from 197 Saudi employees, was analyzed using hierarchical regression analysis and PROCESS Macro to test the hypothesized relationships. Our findings confirm that TL exerts a positive influence on ROC, with the PAP playing a mediating role. Additionally, we found that OT moderates both the positive relationship between TL and PAP, and the indirect link between TL and ROC. By elucidating the mediating role of PAP and establishing that OT can function as a substitute for TL, our study offers valuable insights into the mechanisms connecting TL with ROC. The study concludes with a discussion of the implications, limitations, and potential directions for future research.