Six sigma management activities and their influence on corporate competitiveness

Abstract

Six sigma has long been used as an effective way to restructure a company's management process. A number of successful cases have been reported of six-sigma-based management activities dramatically enhancing a company's strategic performance over study periods of several years. However, while there are abundant case studies in the literature regarding six sigma, there is a lack of empirical studies that adopt statistical approaches. To fill this void, this study proposes a research model to test whether six-sigma-based management activities improve corporate competitiveness. We applied a structural equation model to 161 valid questionnaires collected from managers in a number of Samsung companies that have introduced six sigma and have been actively applying its activities for several years. Empirical results showed that six sigma activities do indeed contribute to process management refreshment, quality improvement, and finally corporate competitiveness. We hope that this study enables further rigorous studies investigating six sigma as a major strategic activity.

Six sigma, absorptive capacity and organisational learning orientation

“…Our results allow us to explain Six Sigma's success from a perspective of teamwork and process management used. We do not see the direct relation of the Six Sigma practices to variables of performance such as improvement in competitiveness (Lee et al, 2006), profitability or market share (Antony et al, 2005;. However, the results show a positive effect on an intermediate variable, absorptive capacity, which, as we will discuss next, affects another variable fundamental to obtaining competitive advantage, organizational learning.…”

“…Our study has shown empirically the positive effect on an intermediate variable, absorptive capacity. This study thus adds to the small number of empirical studies that observe the positive effects of Six Sigma on organizations (Antony et al, 2005;Lee et al, 2006;Gutiérrez et al, 2009). Our results allow us to explain Six Sigma's success from a perspective of teamwork and process management used.…”

“…Six Sigma practitioners "identify and clarify the core processes whose improvement will yield the most dramatic changes and benefits for customers and the organization" (Lloréns et al, 2006, p.487). Process management orientation to continuous improvement requires that Six Sigma members are trained intensely in abilities, group dynamics and statistical methods and tools (Gitlow, 2005;Lee et al, 2006;Ravichandran, 2006;Zu et al, 2008). For example, the DMAIC cycle (define, measure, analyze, improve and control) is also present in Six Sigma, as a tool for process improvement (Kanji, 2008;Kaushik and Khanduja, 2009;Schroeder et al, 2008).…”

“…The positive effects of Six Sigma implementation are well known due to experiences like Motorola's, General Electric's, and Allied Signal's, but the literature contains little empirical research that tests Six Sigma's influence on organizational performance. Lee and Choi (2006) observed Six Sigma's positive effects on quality improvement, process innovation, and corporate competitiveness. Antony et al (2007) and Antony et al (2005) studied Six Sigma implementation in UK service and manufacturing SMEs, respectively.…”

Six Sigma and the Malaysian Hotel Industry

“…These groups of employees in the organization have different task and roles. Thus, teamwork is seen to be pivotal to Six Sigma implementation [43].…”