THE EMPLOYEES’ ORGANIZATIONAL COMMITMENT TOWARDS ORGANIZATIONAL CHANGE: A QUANTITATIVE STUDY APPROACH ON THE MALAYSIAN GOODS AND SERVICES TAX (GST) IMPLEMENTATION

ABSTRACT: During the past decade, a number of developing countries have introduced radical reforms in theircollection of tax. Malaysia as one of the developing countries has as well introduced the Goods and ServicesTax (GST) in April 20151. One of the objectives is to improvise its tax system. Within this context, it is arguedthat the employees’ organizational commitment is an imperative and vital element in boosting the productivityand service delivery quality of the organization. This research is about the study on the issues pertaining to theinfluential effect of the employees’ organizational commitment towards the success implementation of the GSTin Malaysia. In doing so, this research involved the data primarily gathered from the survey questionnairesadministered to the Royal Malaysian Customs Departments (RMCD) employees from all level of positionsthroughout Malaysia. It is found that the factors such as change initiatives and the nature of the relationshipbetween the subordinates and their head of departments are significantly affect the success of the GSTimplementation in Malaysia. At the same time, the employees’ organizational commitment is also found to havea mediating effect on this relationship. Future research should take into considerations other influential elementssuch as the employees’ motivation, performance measurement systems and leadership style in the study tofurther enrich the related body of knowledge.

Keywords: Employees’ Commitment, GST, Organizational Change, Public Sector Reform, Quantitative.