Financial Implications of Resistance To Change (RTC)

Globalization era has imposed a way more uncertain and complex market environment for organizations to compete on. Change has been, is, and will be occurring, since this is the only way organizations can remain competitive and/or battle for a higher market share, maximum resource utilization, and improved capacity to generate revenue. Simultaneously, Resistance To Change (RTC) will follow the change as its shadow. This study undertook and integrated before and after the Merger and/or Acquisition (M&A, which is considered radical change): 1) financial evaluation face-to-face interviews, 2) financial analysis, and 3) RTC survey, of two Kosovar organizations in order to establish financial performance RTC link. Triangulation was used to analyze the data and enable multifaceted and as precise as possible interpretation. The findings suggest that poor/lack of: 1) proper strategic management approach, 2) effective communication throughout the organization, 3) relevant employee participation, 4) managerial/leadership support, and 5) measurements and accordingly rewarded change acceptance, during the transition can result to high RTC and consequently to lower financial performance