Main Article Content
Do downsizing and merger & acquisition significantly and positively affect a company performance? Previous studies on the case showed contradictory results. The result of this research supports that downsizing and merger & acquisition do not positively and significantly affect company performance.
Standardized regression weights coefficients on AMOS output for both variables of downsizing and merger & acquisition are -0.0787 and -0.0109, each. Thus, downsizing and merger & acquisition actually have negative impacts on company performance. Similar coefficient for the variable of transformational leadership is 0.7611; it has a positive and significant impact on company performance.
Research’s respondents are 327 employees of PT Holcim Indonesia Tbk. Test of Cronbach’s Alpha gives 0.886 indicating that the research data is reliable. Some tests of the research model yield good fit for CMIN/df (1.41), RMSEA (0.04), RMR (0.04), AGFI (0.92), and CFI (0.98), as well as acceptable fit for GFI (0.94) and NFI (0.94).
Transformational leadership needs to be applied continuously to improve company performance. Transformational leader shall not put downsizing and merger & acquisition from corporate agenda because they both have a negative impact on company performance.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors wishing to include figures, tables, or text passages that have already been published elsewhere are required to obtain permission from the copyright owner(s) for both the print and online format and to include evidence that such permission has been granted when submitting their papers. Any material received without such evidence will be assumed to originate from the authors.
Arbuckle, J. L. (2012). IBM® SPSS® Amos™ 21 User’s Guide. Amos Development Corporation.
Bass, B. M. (1997). Does the Transactional-Transformational Leadership Paradigm Transcend Organizational and National Boundaries? American Psychologist, Vol. 52, No. 2, 130-139. February 1997.
BCG (2015). The Art of Successful Acquisition. Corporate Development Product Series. The Boston Consulting Group.
Budros, A. (1999). A conceptual framework for analyzing why organizations downsize. Organization Science, 10: 69-82.
Correia, M. F., e Cunha, R. C., & Scholten, M. (2013). Impact of M&As on Organizational Performance: The Moderating Role of HRM Centrality. European Management Journal, 323-332.
David, F. R. (2011). Strategic Management: Concepts and Cases. New Jersey, United States. Pearson Education Inc.
Friebel, G., Heinz, M., & Zubanov, N. (2016). The Effect of Announced Downsizing on Workplace Performance: Evidence from a Retail Chain. Forschunginstitut zur Zukunft der Arbeit (IZA), 1-34.
Garcia-Morales, V. J., Jimenez-Barrionuevo, M. M., & Gutierrez-Gutierrez, L. (2012). Transformational Leadership Influence on Organizational Performance through Organizational Learning and Innovation. Journal of Business Research, Vol. 65, Issue 7, 1040-1050.
Hair Jr., J. F., Black, W. C., Babin, B. J., dan Anderson, R. E. (2014). Multivariate Data Analysis. Pearson New International Edition. Seventh Edition. ISBN 13: 978-1-292-02190-4.
Hogg, B. (2015). Ten Characteristics of Transformational Leaders. Bill Hogg & Associates. Retrieved from www.billhogg.ca
Joash, G. O., dan Njangiru, M. J. (2015). The Effect of Mergers and Acquisitions on Financial Performance of Banks (a Survey of Commercial Banks in Kenya. International Journal of Innovative Research and Development, 101-113.
Kayombo, K. M. Critical Assessment of Performance of Mergers and Acquisitions. The International Journal of Business Management and Technology, Volume 3, Issue 1, January – February 2019, ISSN: 2581-3889.
Koech, P. M., & Namusonge, G. S. (2012). The Effect of Leadership Styles on Organizational Performance at State Corporations in Kenya. International Journal of Business and Commerce, 1-12.
Mitchell, R., O’Donnell, A., dan Ramsay, I. (2005). Shareholder Value and Employee Interests: Intersections between Corporate Governance, Corporate Law and Labor Law. Economic Globalization and Corporate Governance Conference, March 2005, 436.
Navalino, R. D. A., Nimran, U., Astuti, E. S., dan Hamid, D. (2014). The Effect of Downsizing on Transformational Leadership, Organizational Climate, Organizational Commitment, and Employee Performance. IOSR Journal of Business and Management (IOSR-JBM), 32-39.
Ojokuku, R. M., Odetayo, T. A., dan Sajuyigbe, A. S. (2012). Impact of Leadership Style on Organizational Performance: a Case Study of Nigerian Banks. American Journal of Business and Management, 202-207.
Project Management Office (2015). OE: HR Change Agent Consolidation. Holcim Indonesia.
Robbins, S. P., and Coulter, M. (2012). Management: Global Edition. Pearson Education Limited, 490, 497-499.
Robbins, S. P., and Judge, T. A. (2013). Organizational Behavior. Pearson Education, Inc., 484-485.
Santoso, S. (2018). Konsep Dasar dan Aplikasi SEM dengan AMOS 24. Penerbit PT Elex Media Komputindo. Kompas Gramedia. ISBN 978-602-04-6131-1 (Printed).
Strukan, E., Nikolic, M., and Sefic, S. (2017). Impact of Transformational Leadership on Business Performance. Technical Gazette 24, Suppl. 2(2017), 435-444. ISSN 1330-3651 (Print), ISSN 1848-6339 (Online). https://doi.org/10.17559/TV-20150624082830.
Taber, K. S. (2016). The Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Science Education Centre, Faculty of Education, University of Cambridge. UK.
Wilkinson, A. (2004). Downsizing, Rightsizing or Dumbsizing? Quality and Human Resources, in the Management of Sustainability. TQM Journal, October 2004.