The aim of this study is to analyze the role of organizational capacity for change as a mediator between managerial cognitive capabilities with organizational performance. Further, we investigate the moderating role of social capital on the influence of organizational capacity for change on organizational performance. We surveyed middle managers and their immediate followers (supervisor level) in the Directorate General of State Asset (DGSA), Ministry of Finance, Republic of Indonesia. Overall, 313 middle managers and their followers participated in this study. The results demonstrate that organizational capacity for change mediate the influence of managerial cognitive capabilities on organizational performance. In addition, there is no significant moderating effect of social capital on the influence of organizational capacity for change on organizational performance. Theoretical and managerial implications are further presented in this study

Figure 1. Research model and analysis results

Note: ⁺ refers to p < 0.10, * refers to p < 0.05, ** refers to p < 0.01, *** refers to p < 0.001, ꭓ²(df) = 29,699 (17),p= 0.029; GFI (RMR) = 0.923 (0.020).

    This research analyzes the relationship between managerial cognitive capabilities and organizational performance with organizational capacity for change as a mediator, and the relationship between organizational capacity for change with organizational performance with social cognitive mediators. The measurement scale meets validity standards and reliability analysis. The SmartPLS line model analysis confirms that the relationship between managerial cognitive capabilities and organizational performance is mediated by organizational capacity for change. Thus, current research and practices related to managerial cognitive capabilities demonstrate that organizational capacity for change should be considered as an important feature in dynamic capabilities for strategic change. The study further proposed that a middle manager who has skills in managerial cognitive capabilities would greatly encourage organizational capacity for change which would impact on organizational performance. In addition, social cognitive positively strengthens the achievement of strategic changes that affect organizational performance.

Cited from : Adna, Beta Embriyono (2020), Journal Cogent Business & Management, Volume 7, Issue 1