Shaping the Shift: Unpacking Uncertainties in Transformational Leadership for Organizational Change

Purpose: The literature states transformational leadership is “mature.” However, the impact of transformational leadership’s change is also unclear due to employee psychology. This study analyses transformational leadership’s effect on change and followers’ psychology. It emphasizes employee readiness to change. Design/methodology/approach: This research uses cross-sectional data collection techniques to obtain a usable sample of 274 employees in Indonesian startup companies. Data were analyzed using the macro Hayes’ PROCESS. Findings: Transformational leadership fosters commitment to change among organizational members through effec-tive communication and positive impact. They help overcome obstacles and uncertainty by providing clear direction and support. However, this research emphasizes that although psychological capital is believed to mediate the rela-tionship between transformational leadership and readiness for change, its influence is sometimes insignificant. Therefore, ILC can play a supporting role as a moderated mediator. Research limitations/implications: The managerial implication suggests that complex relationships and organiza-tional dynamics can create an inclusive and cooperative workplace. Originality/value: This study sheds light on how transformational leadership and employee psychology affect change readiness.