Empirically testing the impact of change management effectiveness on company performance

Abstract

The literature is abundant with articles extolling the importance of change as a necessity for business survival and growth. Specifically, business change means the redesigning of business processes, the improvement of the company’s products and/or services, and organizational changes to organizational structure and/or culture deemed necessary for better performance. Despite the importance of the topic, the existing literature contains little empirical evidence. Mostly superficial analyses and personal opinions have been published in this basic area. A field test of how effectively business organizations are implementing business changes, and use IS technology to do so, was undertaken to understand the important characteristics of the business change processes involved and to empirically test the relationships among these constructs. Despite the relatively small sample size, the results provide clear evidence about the importance of effectively managing business change for business success. The items used for measuring the main constructs provide further insights into how managers should go about managing necessary business changes, including IS department support for the change process to improve business performance.

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