The Effect of Contextual Factors on Resistance to Change in Lean Transformation

Abstract

The purpose of this paper is to uncover whether and how contextual factors (information exchange, participation, trust in management, and training), relate to resistance to change. It also explores the mediating effect of perceived impact of change on the relations between contextual factors and resistance to change. This study is conducted in several manufacturing plants in food processing industry in Vietnam, which is implementing a top-down large-scale change – Lean transformation, adopting Total Productive Maintenance (TPM) program, to be specific. The findings suggest that all four contextual factors are negatively associated with resistance to change, in which training had the strongest impact. Also, the perceived change impact partially mediates the relationships between the four contextual factors and resistance to change. The practical implications of this paper are that employees who receive adequate, timely and useful information relating to change are less likely to show opposing behaviors towards change. Fostering trust in management among employees, and employee involvement in decision-making, also have a significant influence when addressing employee resistance to change. Employees who are well-trained, well-equipped with tools and knowledge about the change, are less likely to resist as they view the benefits of changes more significant than the risks.