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The purpose of this paper is to explain the rationale for designing and implementing an action learning and research process to significantly transform the work behaviour of tradition‐bound bakers to embrace leading ideas of a new workplace culture in order to diversify the product range of the moon cake and generally improve the competitive performance of the company.

Emphasis was placed on action learning and action research as the main vehicles for managing the organizational change process.

The project demonstrates how an action learning and change management strategy was designed and implemented with a Chinese workforce that had no prior experience of modern ideas on production technology and other aspects of the new workplace culture.

The project was confined to a single case study approach in the bakery department of a major food company in Hong Kong.

The project demonstrates a close correspondence between organizational learning and change management theory and the actual process and outcomes of a practical change agenda.

The special value of the paper lies in its insights into the work behaviour of Chinese factory workers.