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Annals of Organizational Culture, Leadership and External Engagement Journal

2026 Volume 7 Issue 1

Linking Transformational Leadership to Organizational Change Capability through Trust-Based


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  1. Department of Organizational Leadership and Business Culture, College of Business Administration, Seoul National University, Seoul, South Korea.
  2. Department of Corporate Strategy and Stakeholder Relations, Faculty of Management Engineering, KAIST, Daejeon, South Korea.
Abstract

Given the growing importance of organizational change capability as a driver of development and sustained competitive advantage, this study investigates how transformational leadership (TL) shapes organizational change capability (OCC). It further examines this relationship through two distinct mediating dimensions of trust in leadership: disclosure-based trust and reliance-based trust. The study applies structural equation modeling to assess the influence of TL and employee trust on OCC. The analysis is based on survey data obtained from 376 respondents working in 115 small and medium-sized enterprises in China. Empirical results indicate that transformational leadership and both forms of employee trust in leadership significantly and positively contribute to organizational change capability. In addition, disclosure-based trust demonstrates a stronger effect on OCC than reliance-based trust. The findings also confirm that both trust dimensions operate as mediating mechanisms linking TL to OCC. This research advances understanding of the processes through which transformational leaders cultivate differentiated forms of trust in leadership and how these influence organizational change capability. The results extend existing knowledge in organizational behavior and change management and offer a useful framework for explaining the interrelationships among TL, employee trust in leadership, and OCC. The study highlights practical value by suggesting that organizations should adopt transformational leadership practices to strengthen employees’ trust in leaders, thereby enhancing organizational change capability.


How to cite this article
Vancouver
Park J, Kim M, Lee S. Linking Transformational Leadership to Organizational Change Capability through Trust-Based. Ann Organ Cult Leadersh Extern Engagem J. 2026;7(1):13-24. https://doi.org/10.51847/cWRFX5zEC9
APA
Park, J., Kim, M., & Lee, S. (2026). Linking Transformational Leadership to Organizational Change Capability through Trust-Based. Annals of Organizational Culture, Leadership and External Engagement Journal, 7(1), 13-24. https://doi.org/10.51847/cWRFX5zEC9
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