Analysis on the influential factors of transformation resistance of small and medium enterprise managers

Abstract

The majority of small and medium-sized enterprises (SMEs) in Taiwan are original equipment manufacturers (OEMs) or original design manufacturers (ODMs). Given the growing intensity of global competition, transformation from OEM or ODM to a branded enterprise is a key concern for SMEs. SMEs’ branding processes are subject to numerous problems and among them, resistance by organization members is considered the most critical. Previous studies have largely focused on factors contributing to branding success or resistance by an organization’s employees, and few have addressed the implications of SMEs managers’ resistance to branding. To address the research gap, this study constructs a cognitive model for managers’ resistant behavior while drawing on the theory of planned behavior. Then, applying structural equation modeling, this study confirms that four exogenous variables, perceived belief, changes in job characteristics, organizational inertia, and social factors, directly influence two endogenous variables, managers’ attitude toward resistant behavior and the subjective norms of resistant behavior. Using demographic variables as independent variables, this study conducts a logistic regression analysis to predict companies resistant to branding on the basis of their background characteristics. The results highlight that the three factors with the highest predictive powers are organizational inertia, job position, and capitalization.