Beyond structural change: Servant leadership as a mediating mechanism linking change management and organizational performance

Abstract

This study examines how change management translates into organizational performance by proposing servant leadership as a relational mediating mechanism in Peruvian manufacturing firms. Drawing on dynamic capabilities theory, social exchange theory, and organizational readiness for change, the research develops a process-oriented framework that challenges the traditional assumption that organizational change automatically improves performance outcomes. A cross-sectional quantitative design was employed using structural equation modeling (SEM) with data collected from 312 managers and administrators in manufacturing companies located in Lima, Peru. The findings reveal that change management does not exert a significant direct effect on organizational performance (β = .091, p > .05). However, change management positively influences servant leadership (β = .294, p < .001), while servant leadership significantly enhances organizational performance (β = .359, p < .001). In addition, the indirect effect is significant (β = .105, p < .001), indicating that servant leadership acts as a critical relational mechanism through which organizational change is effectively translated into performance outcomes. These results suggest that the value of organizational change depends not only on structural transformation but also on the organization's capacity to foster trust, alignment, and employee commitment during periods of transition. The study contributes to the organizational change and leadership literature by advancing a process-based explanation of change effectiveness and providing empirical evidence from an underexplored emerging economy context.