Change Credit: The Compensatory Effects of Leader Group Prototypicality and Organizational Identity Strength in Organizational Change

Abstract

This research empirically examined a central claim of the social identity approach to leadership in the context of organizational change, namely that group prototypical leaders possess a ‘special credit’ in leadership performance and consequent follower support. We investigated leader prototypicality in comparison to and combined with change leadership and explored its boundaries focusing on organizational identity strength. Furthermore, we situated our analysis in two countries, Austria and Germany, that differ along cultural dimensions known to influence the effectiveness of leader group prototypicality. In our study of 207 Austrian and 206 German employees, we found that leader prototypicality, change leadership, and organizational identity strength each uniquely predicted perceived leader support, both in the combined sample and within each country. Furthermore, we observed the hypothesized two-way interaction between leader prototypicality and change leadership across these samples, as well as a three-way interaction with organizational identity strength in the combined and Austrian samples. Change leadership was less predictive with increasing leader group prototypicality, particularly in organizations with strong organizational identity. We interpret this as evidence of a ‘change credit’ for prototypical leaders, allowing them to compensate for a deficit in change-specific leadership behaviours, especially in contexts where organizational and leader identities are salient.

MAD statement

Our study investigates how leaders who embody their group's identity can more effectively drive organizational change, requiring fewer change management efforts to secure follower support. By exploring the idea of ‘change credit’ among Austrian and German employees, we highlight the critical role of social identity leadership, alongside a strong team and organizational identity, in achieving successful organizational transformations. This research contributes to Sustainable Development Goals 8 (Decent Work and Economic Growth) and 9 (Industry, Innovation, and Infrastructure) by offering scientifically-backed insights into more effective leadership strategies during challenging transitions in companies and economies.