Empowering leadership and team change capability: the mediating effect of team PsyCap

Purpose: Based on Resource Conservation (COR) theory, this study explores the antecedent of team change capability, which consists of the dimensions of learning, process and context and examines how, under the empowering leadership (EL) of middle managers, team change capability (TCC) may be built through team psychological capital (TPSyCap). Design/methodology/approach: The study was conducted with 853 respondents and 55 teams from 11 leading autonomous higher education institutions (AHEIs) in Indonesia. Findings: The results show that EL is positively related to TPsyCap, which mediates the relationship between EL and TCC, particularly for TCC learning capability. However, TPsyCap does not mediate the effect of EL on TCC process capability and TCC- context capability. Originality/value: This study enriches existing leadership literature, which is considered relevant in building organizational change capabilities, particularly on a team level. Furthermore, the findings reveal TPsyCap is an important intervention mechanism in catalyzing the relationship between EL and TCC. © 2024, Emerald Publishing Limited.