The Role of Transformational Entrepreneurship, Readiness to Change and Counterproductive Work Behavior in Enhancing Employee Performance

Abstract Background and Purpose: The company sustainability balancing economic with social impact to coexist whilst the transformation entrepreneurship create the coexist. The purpose of this research is to better understand the consequences of transformational entrepreneurship, in terms of increasing organizational readiness for change, minimizing counterproductive work behavior and enhancing employee performance. In addition, this paper aims to comprehend the extent to which organizational readiness for change and counterproductive work behavior affect employee performance. Methodology: The data were collected via a survey of 257 branches of a state-owned bank. The structural equation model (SEM) was used to test the proposed model. Findings: Transformational entrepreneurship positively and significantly affect organizational readiness for change and employee performance, and negatively and significantly affect counterproductive work behavior. Moreover, the result demonstrated a significantly positive effect of organizational readiness for change on employee performance, and demonstrated a significantly negative effect of counterproductive work behavior on employee performance. Conclusion: Point of this study is the effectiveness of transformational entrepreneurship in directly affecting employees’ performance. However, the effect transformational entrepreneurship has on readiness for change and counterproductive work behavior adds its impact on employees’ performance and based on the direct effect, readiness for comes up much more impactful than the other two. It implies how volatile and dynamics the work (internal and external) situations that having employees ready for change can help them cope with such volatility and dynamics to reach better performance.