When Yes Is a No: Navigating the Façade of Conformity in Continuous Improvement

ABSTRACT Continuous Improvement (CI) initiatives are central to operational excellence, emphasizing bottom‐up, team‐based problem‐solving. In practice, however, they are embedded within hierarchical systems that require managerial oversight. This duality introduces a structural tension between empowerment and control, giving rise to a behavioral dynamic that we conceptualize as the façade of conformity (FC) in CI, a defensive impression‐management behavior where team members outwardly express agreement with CI decisions while privately withholding dissent. We argue that FC in CI affects operational performance. We further theorize that collective team identification (CTI), a shared sense of belonging and commitment to goals, moderates this negative relationship. We test our theory in two complementary studies: a laboratory experiment involving 71 teams (284 participants) simulating ad‐hoc CI, and a field study of 330 structured CI projects within a large financial services firm. Across both settings, we find that FC has a negative impact on operational performance, while a strong CTI mitigates this effect. We conduct extensive robustness and supplementary analyses to validate our results. This research contributes to behavioral operations and continuous improvement bodies of knowledge by introducing FC in CI as a distinct behavioral failure mode and identifying CTI as a boundary condition, providing managers with guidance on recognizing and addressing FC to safeguard CI efforts and investments.