In this paper, we study leadership style and organizational culture, elements that, we argue, are conducive for Chinese shop-floor employees to participate in problem solving in 'lean' manufacturing. Power distance and the concern for saving face potentially hinder employees' willingness to participate in such problem solving, but our findings support the notion that transformational leadership helps to overcome these barriers. The relationships are not straightforward, however, and by examining the complexities, this research may provide insights into this dilemma.