THE INDIRECT EFFECT OF CUSTOMER RELATIONS ON LEAN SOCIAL FACTORS AND ORGANIZATIONAL READINESS FOR CHANGE AMONGST MANUFACTURING SMES IN NIGERIA: PLS-SEM APPROACH

Abstract

The paper aims to assess lean readiness within manufacturing SMEs in Nigeria by examining the role of lean social factors, i.e., leadership, organizational culture, and employee relations, on organizational readiness for change (change efficacy and change commitment) through the indirect effect of customer relations. Data was collected from Managers of manufacturing SMEs through questionnaire administration. Three hundred questionnaires were analyzed using Partial Least Square – Structural Equation Modelling 3.3 (PLS-SEM). The study's findings reveal that all social dimensions (organizational culture, leadership, and employee relations) positively and significantly affect customer relations. Also, a significant, positive relationship was found between social dimensions and organizational readiness for change dimensions (change efficacy and change commitment), except for leadership and employee relations on change efficacy. The indirect effect on customer relations was positive and significant in the relationship between social factors and organizational readiness for change dimensions.