Psychological Ownership and Openness to Change: The Mediating Effects of Work Engagement, and Knowledge Creation

Abstract

This study examines the effects of psychological ownership on engagement, knowledge creation, and openness to change in a Korean public-organization context. This study also examined the mediation effects of engagement and knowledge creation to explain the relation between employees' psychological ownership and their openness to change. Structural equation modeling was conducted, using a total of 202 employees working in a Korean public-sector organization. Psychological ownership impacts engagement, knowledge creation, and openness to change, and engagement positively influence employees' knowledge creation, which also positively influences their openness to change. The mediation effect of engagement between psychological ownership and knowledge-creation practice was also found. From a strategic public-management perspective, psychological ownership should be a greater focus in the dynamic and complex structure and system of present and future workplaces in public-sector organizations. Public-sector organizations should invest more to enhance the level of employees' psychological ownership.