INFLUENCE OF SOCIAL AND ECONOMIC EXCHANGE PERCEPTIONS ON ORGANIZATIONAL COMMITMENT: EVIDENCE FROM LEAN MANUFACTURING ENVIRONMENT

Abstract

The purpose of this research is to investigate the relationship between social and economic exchange processes and employee affective and continuance commitment in the lean implemented Sri Lankan textile and apparel firms. Although numerous empirical studies pertaining to the textile and apparel industry have been published, relatively little is known about behavioral management concepts such as exchange process and employee commitment in textile and apparel firms in Sri Lanka. Many elements of the present consensus developed from studies of West may not be directly applicable to developing countries. It is likely that differences in macro environmental factors, such as national culture, may render the commonly accepted Western notions of behavioral management philosophy less appropriate in Asian developing nations such as Sri Lanka. A sample of twelve firms that have implemented lean manufacturing systems was selected for the study. A random sample of 346 shop-floor employees from the above eight firms responded. The self-administrated survey questionnaire was used for data collection. The data analysis was conducted by using SPSS. The findings showed a significant positive relationship between social exchange process and affective commitment. Further, contrary to the previous research, there is no significant relationship between economic exchange process and continuance commitment. In addition, the study found that demographics characteristics of respondents do not have significant relationships with both exchange processes and commitment. Overall, this study demonstrates empirical support for the link between exchange process and employee commitment.

Key Words: Lean Manufacturing, Social Exchange, Economic Exchange, Affective Commitment, Continuance Commitment

For full paper: fmscresearch@sjp.ac.lk