This paper examines the communication approach and exits support implemented during a factory closure in a foreign-based manufacturing firm. A total of 200 employees were selected as respondents for the study. The research applied a quantitative approach using a questionnaire survey with a five-point Likert scale to evaluate employee agreement and perceptions regarding communication effectiveness and exit support during the closure process. The findings revealed that 14 out of 18 communication items were positively rated and generally satisfied by the respondents. However, two communication items received strong disagreement from employees, particularly regarding the closure announcement involving media presence and employee riots. The media were not directly involved during the announcement process due to the limited timeframe and controlled communication strategy adopted by the company. Only top management representatives communicated with the media, while published news articles were later displayed on notice boards as general information for employees. For exit support, most respondents selected “not sure,” mainly because they had never previously experienced a factory closure situation. In addition, many employees had spent most of their careers in their first manufacturing company, resulting in limited exposure to employment transition or career relocation support. The study provides valuable insights for organizations that may face factory closure situations in the future, particularly in improving preparedness strategies, communication management, and the effectiveness of HR interventions to reduce employee anxiety and uncertainty during organizational shutdowns.
Agrawal, A. (2026). Organizational healing: Development and validation of a scale for workplace recovery after crises. Acta Psychologica. https://www.sciencedirect.com/science/article/pii/S0001691825013964
Abdul Rahman, M., Hassan, R., & Ismail, N. (2023). Managing workforce morale during industrial transitions in Malaysia. Journal of HR Strategies, 18(2), 115–128.
Alsaawi, A. (2024). Qualitative interview design in organizational change studies. Journal of Organizational Psychology, 12(2), 66–78.
Armstrong, M., & Taylor, S. (2020). Armstrong's handbook of human resource management practice (15th ed.). Kogan Page.
Barkat, W., Subramaniam, G., & Manickiam, M. (2024). Green HRM and sustainability performance in Malaysian manufacturing. Journal of Sustainable HRM, 10(1), 22–37.
Bennett-Alexander, D. D., & Hartman, L. P. (2021). Employment law for business (10th ed.). McGraw-Hill Education.
Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). Sage Publications.
Gilley, A., Gilley, J. W., & McMillan, H. S. (2022). Organizational transition strategies. Journal of Applied Behavioral Science, 58(3), 249–270.
Gohar, B., Adhikari, S., & Meraj, S. (2022). Coping strategies and stress during organizational change. Journal of Mental Health in the Workplace, 6(1), 55–72.
Griep, Y. (2025). Sustainable human resource management and employee well-being during organizational restructuring. Human Resource Development Review, 24(1), 11–29. https://www.sciencedirect.com/science/article/pii/S0090261624000871
Griep, Y., Vantilborgh, T., & Jones, S. K. (2025). Sustainable human resource management: The good, the bad and the paradoxical. Organizational Dynamics, 54(1), Article 101063. https://www.sciencedirect.com/science/article/pii/S0090261624000871
Irving, T., Lee, S., & Smith, B. (2022). Lessons from automotive sector closures in Australia. Journal of Industrial Relations, 64(2), 189–205.
Kim, J., Hon, A. H. Y., & Crant, J. M. (2019). Effects of human resource management systems on employee proactivity and group innovation. Journal of Management, 45(2), 561–580.
Lindquist, S. (2022). Emotional responses to social media experiences measure. APA PsycNet, 22(2), 312–325.
Lotich, P. (2023). 9 duties of a human resource assistant. The Thriving Small Business. https://thethrivingsmallbusiness.com/what-does-a-human-resource-assistant-do
Lundmark, R., et al. (2024). Organizational change from a leader’s perspective: Change characteristics as antecedents to leaders’ role clarity and leadership behaviours. Leadership & Organization Development Journal, 45(9), 31–43. https://www.sciencedirect.com/org/science/article/pii/S0048348624000062
McGrath, T. (2024). Integrated HR interventions during workforce restructuring. International Journal of Human Resource Studies, 16(4), 122–139.
Pandey, A., Maheshwari, M., & Malik, N. (2025). A systematic literature review on employee well-being: Mapping multi-level antecedents, moderators, mediators and future research agenda. Acta Psychologica, 250, Article 105080. https://www.sciencedirect.com/science/article/pii/S0001691825003932
Sabri, A., & Saraih, U. (2021). Human resource management practices and innovation work behaviour. International Journal of Business & Technology, 11(2), 13–28.
Thomas, G., Nelson, J., & Silverman, S. (2016). Research methods in physical activity (7th ed.). Human Kinetics.
Williams, D. R., Hauret, L., Martin, L., & Omrani, N. (2020). How do HRM practices improve employee satisfaction? Economic and Industrial Democracy, 43(2), 972–996.
World Bank. (2017). Malaysia productivity and performance report. https://www.worldbank.org
Razak, M., Sultan, A. A. M., Mahmood, W. H. W., & Himawan, A. F. I. (2026). Effective Communication and Exit Support During Factory Closure: A Case Study in a Foreign Based Manufacturing Firm. International Journal of Academic Research in Business and Social Sciences, 16(6), 195–210.
Copyright: © 2026 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
