Objective - Organizations nowadays have to change and adjust themselves with the changing external environment in order to survive in the globalization era. This change requires a high affective commitment to change from its employees. The purpose of this study is to examine the impact of psychological capital and psychological empowerment on employee's affective commitment to change.

Methodology/Technique - Respondents were 242 employees of Indonesian financial institutions which have undergone organizational changes. Data collection tools were Commitment to Change Inventory, Psychological Empowerment, and Psychological Capital, and was analysed using regression analysis.

Findings - Findings indicated that a positive and significant impact of psychological capital and psychological empowerment on affective commitment to change. This study also found that psychological capital has a more significant influence on affective commitment to change than psychological empowerment.

Research limitations/implications - The implications of the study can be used for managing change better, such as developing confidence in people by developing both psychological empowerment and psychological capital.

Originality/value - Results are essential for managing change better, such as developing confidence in people by promoting both psychological empowerment and psychological capital.

Type of Paper - Empirical

Keywords: Affective Commitment to Change; Psychological Capital; Psychological Empowerment; Organizational Change; Financial Institutions.

JEL Classification: G23.