Two-Factor Theory of Culture Change Management: Distinguishing between Critical Success and Critical Failure Factors

Abstract

This paper presents the findings from a comprehensive questionnaire survey of critical success factors and critical failure factors in culture change management. Data from 89 South Korean organizations are analyzed to study the effect of 10 independent variables on the performance of attempts to manage culture change. Six turned out to be significant factors. When the performance continuum was divided into two (success and failure), three of the six variables loaded significantly on the success scale, whereas the other three loaded significantly on the failure scale. Based on these results, a two-factor theory of culture change management is proposed. The study concludes that companies undertaking culture change should focus on critical failure factors to prevent failure and on critical success factors to succeed.