Title:
ANALYSIS OF INSTITUTIONAL TRANSFORMATION WITH ORGANIZATIONAL READINESS AS A MEDIATING VARIABLE AT THE INSTITUTO DE DEFESA NACIONAL TIMOR-LESTE

Authors:
Tonilo da Silva Santos, Yuniningsih Yuniningsih and Ika Korika Swasti

Abstract:
Institutional transformation is a strategic organizational change process that involves structural, cultural, and managerial adjustments to ensure organizational adaptability and sustainability in a dynamic environment. This study aims to analyze institutional transformation with organizational readiness as a mediating variable at the Instituto de Defesa Nacional Timor-Leste, which is currently undergoing an institutional transformation toward becoming a defense higher education institution. This study employed a quantitative explanatory research design using a census method, in which all employees involved in the transformation process were included as respondents. Data were collected through a structured questionnaire and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results indicate that transformational leadership has a positive and significant effect on institutional transformation and organizational readiness. Organizational culture has a significant effect on organizational readiness but does not directly influence institutional transformation. Organizational communication has a positive and significant effect on institutional transformation but does not significantly affect organizational readiness. Furthermore, organizational readiness does not mediate the relationship between transformational leadership, organizational culture, organizational communication, and institutional transformation. These findings suggest that institutional transformation in defense-related public organizations is primarily driven by direct leadership actions and effective communication, while organizational culture and readiness function as supporting factors. This study contributes to the literature on organizational change by highlighting the contextual role of organizational readiness in institutional transformation processes.

Keywords:
Institutional Transformation, Organizational Readiness, Defense Higher Education Institution, Timor-Leste.

DOI:
https://doi.org/10.37500/IJESSR.2025.8618

Date of Publication: 31-12-2025