THE ANALYSIS OF PARTIAL EFFECT AND ORGANIZATIONAL CULTURE MODERATION, TRANSFORMATIONAL LEADERSHIP, AND LOCAL CULTURE, TOWARD PRIVATE HIGHER EDUCATION ORGANIZATION CHANGES

Abstract

Purpose: This paper aims to analyse the partial effect and moderation between variables of organizational culture, transformational leadership, and local culture; toward organizational changes.   Theorical framework: The process of higher education in Indonesia cannot be separated from government intervention as the highest stakeholder, including in educational institutions. Some policies related to the curriculum, teaching staff, education staff, facilities, administration, and so on. Thus, higher education providers must fulfil administrative elements predominantly, rather than developing knowledge and skills. By looking at this phenomenon, there has to be a link between political interests, policies, and higher education (Zhai and Yuan, 2019).   Design/methodology/approach: This study uses descriptive qualitative analysis. Data analysis used in this study is using SmartPLS 3.0 with 315 samples of higher education institution leaders in Jakarta. The research questions of this study are: a. the Effects of organizational culture on organizational change; b. the impact of transformational leadership on organizational change; c. impact of local culture on organizational change; d. the impact of transformational leadership facilitation on organizational change; e. effects of local culture moderation on the relationship between organizational culture and organizational change.   Findings: The results of this study are: 1) organizational culture has positive and significant impact toward organization changes (relatively low, only 7.1%); 2) transformational leadership has positive and significant impact toward organization changes (relatively high, 88.9%); 3) local culture has positive and significant impact toward organization changes (relatively low, only 5.3%); 4) transformational leadership has no moderation relationship between organizational culture and organization changes; 5) local culture has no moderation relationship between organizational culture and organization changes, hence those two moderation variables are not getting stronger nor weaken. They are independently has partial effect to the organization and need no moderation toward organizational culture to achieve organization changes.   Research, Practical & Social Implications: This study has come up with empiric and scientific findings that transformational leadership has the highest effect toward organizational changes in private owned higher education organizations in Jakarta, Indonesia.   Originality/value: The novelty of this study has shown that shows that transformational leadership has the greatest impact on organizational change in a private university in Jakarta, Indonesia.