Lean, Six Sigma and its influence on potential and realized absorptive capacity

2020 ◽  
Vol 11 (1) ◽  
pp. 84-124 ◽  
Author(s):  
J. Muraliraj ◽  
S. Kuppusamy ◽  
Suhaiza Zailani ◽  
C. Santha
Keyword(s):  
Absorptive Capacity ◽  
Six Sigma ◽  
Lean Six Sigma ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Future Research ◽  
Mediation Effects ◽  
Content Type ◽  
Differential Outcomes ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to explore how Lean and Six Sigma’s distinctive practices relate to potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP). The paper seeks to understand which of the practices in Lean Six Sigma are needed to manage absorptive capacity systematically. Design/methodology/approach Partial least square based structural equation modeling (PLS-SEM) was used to test the theoretical model drawing on a sample of 125 manufacturing organizations in Malaysia. In addition to examining direct effects, the study also examines indirect effects using bootstrapping method to identify possible mediation effects proposed in the model. Findings The results explain that Lean’s social practices (LSP), Six Sigma’s roles structure (RS) and structured improvement procedure (SIP) positively influence potential absorptive capacity (PACAP). Meanwhile LSP, RS and focus on metrics (FOM) positively influence realized absorptive capacity (RACAP). SIP was found to influence RACAP through PACAP. The analysis reveals the combination of Lean Six Sigma practices that are required in managing PACAP and RACAP differentially. Research limitations/implications The study is only confined to manufacturing industries in Peninsular Malaysia. Data collected were cross-sectional in nature. The application of Lean Six Sigma and how it influences absorptive capacity may get sturdier across time, and this may change the effect toward sustainability of firm’s competitive advantage. A longitudinal study may be useful in that context. The study also makes specific recommendations for future research. Practical implications The results of this study can be used by Lean Six Sigma practitioners to prioritize the implementation of Lean Six Sigma practices to develop absorptive capacity of the organization through PACAP and RACAP, which needs to be managed differentially as they exert differential outcomes. This would enable organizations to tactfully navigate and balance between PACAP and RACAP in accordance to business strategies and market conditions. Originality/value Absorptive capacity in Lean and Six Sigma context has largely been studied as a unidimensional construct or used as a grounding theoretical support. Therefore, understanding the multidimensionality through PACAP and RACAP provide insights on how to enhance and maneuver absorptive capacity through Lean Six Sigma systematically. The findings may pave the way for future research in enhancing the current knowledge threshold in Lean Six Sigma.

Intellectual capital and business performance: the role of dimensions of absorptive capacity

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan
Keyword(s):  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Business Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

Implementation of Lean Six Sigma in Saudi Arabian organisations

2017 ◽  
Vol 34 (4) ◽  
pp. 508-529 ◽  
Author(s):  
Saja Ahmed Albliwi ◽  
Jiju Antony ◽  
Norin Arshed ◽  
Abhijeet Ghadge
Keyword(s):  
Saudi Arabia ◽  
Six Sigma ◽  
Best Practice ◽  
Online Survey ◽  
Saudi Arabian ◽  
Lean Six Sigma ◽  
Current Status ◽  
Future Research ◽  
Structured Interviews ◽  
Content Type

Purpose Although the popularity of the Lean Six Sigma (LSS) methodology has illustrated many benefits over the years for those organisations who have implemented it, this strategy has received less attention in developing countries. The purpose of this paper is to critically assess the current status of LSS implementation in Saudi Arabian organisations. Design/methodology/approach This research is based on a descriptive survey questionnaire which has been derived from two systematic literature reviews. The survey was distributed to 400 organisations in Saudi Arabia using Qualtrics online software. In total, 146 responses were received where 102 responses were completed and analysed. Findings The findings of the survey highlighted that the implementation of LSS is still in the early stages in organisations within Saudi Arabia. This was clearly shown by many factors such as years of deploying LSS, LSS infrastructure, level of awareness of LSS, impact of LSS on business functions and so on. Research limitations/implications The primary limitation of this study is that data has been collected from an online survey and therefore no deeper insights could have been captured from the survey. This calls for future research to be undertaken by executing semi-structured interviews in selective organisations within Saudi Arabia. Originality/value This paper contributes to the current status of LSS in Saudi Arabian organisations. It also gives recommendations to guide the future of LSS in Saudi organisations by comparing LSS literature with best practice.

Role of market orientation in sustainable performance

Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 352-375 ◽  
Author(s):  
Soheil Kazemian ◽  
Rashidah Abdul Rahman ◽  
Zuraidah Mohd Sanusi ◽  
Abideen A. Adewale
Keyword(s):  
Market Orientation ◽  
Structural Equation ◽  
Customer Orientation ◽  
Partial Least Square ◽  
Least Square ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
Competitor Orientation

Purpose Without prejudice to the efficacy of other poverty alleviation mechanisms, micro-financing arguably enjoys relative prominence. However, notwithstanding the remarkable loan repayment rate that the microfinance firms report, they still face the challenge of sustainability. The paper aims to provide insights into how three dimensions of market orientation, namely, customer orientation, competitor orientation and inter-function coordination, affect the two aspects of the sustainability of microfinance institutions (MFIs; management and financial). Design/methodology/approach To achieve this goal, this study focuses on Amanah Ikhtiar Malaysia (AIM), a leading microfinance provider which is also the largest MFI in South East Asia. Data elicited via a survey questionnaire administered on 190 management staff of AIM across Malaysia are subjected to statistical analysis via the partial least square-structural equation modeling using SmartPLS 2.0. Findings The results provide empirical evidences that indicate that management sustainability is significantly influenced by customer orientation and inter-function coordination. However, only customer orientation affects the financial sustainability of AIM. Nevertheless, competitor orientation has non-significant effects on both aspects of sustainability of AIM. Research limitations/implications The result of the paper contributes to the literature in understanding the long-term sustainable financial and social performance-based market orientation. Originality/value Findings are useful for policy makers, management of MFIs, practitioners and academics to enhance microfinance system. Managerial implications, limitation of the study and suggestions for future research are also included.

A systematic literature review of lean six sigma adoption in European organizations

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikolaos A. Panayiotou ◽  
Konstantinos E. Stergiou
Keyword(s):  
Six Sigma ◽  
Lean Six Sigma ◽  
Complete Analysis ◽  
Future Research ◽  
Analysis Framework ◽  
Inclusion Criteria ◽  
European Organization ◽  
Content Type ◽  
European Institutions ◽  
Practical Implications

Purpose The purpose of this paper is to review of the literature about lean six sigma (LSS) implementation in European organizations written by academics or practitioners from European institutions to extract useful conclusions about LSS adoption in European companies and to suggest direction for future research concerning the broader LSS application in them. Design/methodology/approach This study has been conducted by reviewing 58 papers, found in top journals, coming from European institutions that present studies of European companies and fulfill the selected inclusion criteria. Findings The analysis of the literature revealed the level of penetration of the LSS methodology in organizations of each European country. The study of the papers revealed the sectors and the size of companies that are more active in LSS application, the method used in each project, the tools which are deployed and the interconnection between LSS and other topics through the project implementation. Research limitations/implications The limited access provided by the authors’ institution only to three major publishers (Emerald, Elsevier, Taylor and Francis) and the focus of the search only in European organizations were the main limitations of this review. Practical implications This paper provides both academics and practitioners with valuable insights about LSS implementation in European organizations, presenting a complete analysis framework of the literature and highlighting gaps for further research. Originality/value An extended and detailed analysis of LSS adoption in Europe has not been conducted before. This review presents a clear view about how LSS projects in European organization have been applied so far and suggests ways of how the literature could be enriched to facilitate the LSS implementation.

Determinants of personal factors in influencing the buying behavior of consumers in sales promotion: a case of fashion industry

2017 ◽  
Vol 18 (4) ◽  
pp. 408-424 ◽  
Author(s):  
Fazal ur Rehman ◽  
Rosman Bin Md Yusoff ◽  
Shafie Bin Mohamed Zabri ◽  
Fadillah Binti Ismail
Keyword(s):  
Personal Characteristics ◽  
Partial Least Square ◽  
Sales Promotion ◽  
Equation Modeling ◽  
Future Research ◽  
Fashion Industry ◽  
Personal Factors ◽  
Buying Behavior ◽  
Content Type ◽  
Market Maven

Purpose This study aims to investigate the influence of personal factors on the buying behavior of consumers with the intentions of sales promotion in the fashion industry. Precisely, it focuses on the marketing techniques and practices in sales promotion activities to influence the buying intentions of consumers in personal ways. Design/methodology/approach Based on a comprehensive literature review of personal factors, sales promotion and buying behavior, this study has applied a positivist approach to collect data in quantitative way through questionnaires-based survey. The study has analyzed the collected data using structural equation modeling through smart partial least square. Findings Personal factors and its sub-dimensions such as market maven, stability and open minded have demonstrated a positive relationship in the conceptual construct. In the same manner, sales promotion and its sub-dimensions like social factors and physical layout have also positive effects. Research limitations/implications This study is only limited to the fashion industry of Pakistan and future research may be conducted in other services and manufacturing industries. Future research may assess the role of moderating variables like gender. Practical implications This study clarifies the influence of personal characteristics on consumers buying behavior in sales promotion activities in the fashion industry to achieve business objectives. Originality/value By integrating personal factors and sales promotion literature, the main contribution of this paper is the analysis of personal characteristics and promotional practices in the fashion industry of Pakistan, during Eid-ul-Fitter holidays to enhance the consumers buying behavior. Precisely, this study has assessed the effect some unique characteristics of consumers like market maven, stable, open minded and agreeable on their buying behavior in sales promotion activities. This study has apprised marketing professionals to apply the conception of personal characteristics in sales promotion activities to boost up the buying behavior of consumers in enthusiastic way.

The dynamic role of rapport on satisfaction–commitment relationship

2020 ◽  
Vol 38 (4) ◽  
pp. 917-932
Author(s):  
Johra Kayeser Fatima ◽  
Rita Di Mascio ◽  
Ali Quazi ◽  
Raechel Johns
Keyword(s):  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Future Research ◽  
Normative Commitment ◽  
Content Type ◽  
Moderation Effect ◽  
Long Run

PurposeThis study aims to capture the mediation role of customer–frontline employee rapport on customer satisfaction and affective, calculative and normative commitment by using three alternative models. It also verifies the moderation effect of relationship age on the rapport-satisfaction link in each alternative model.Design/methodology/approachThe survey data collected from bank customers were analyzed using structural equation modeling (SEM) with the partial least square (PLS) method.FindingsResults confirmed rapport as a significant mediator between satisfaction and each of the three types of commitment. Relationship age significantly moderates the links between rapport to affective and normative commitment but not to calculative commitment.Research limitations/implicationsAdditional findings from “importance–performance analysis” suggest that satisfaction is more import to customers than rapport for developing commitment, so further investigations can reveal the underlying reasons. Also, complementary mediation shows one or more missing mediators, which calls for future research.Practical implicationsManagers need to use rapport strategically with customers in different relationship ages to build different types of commitment. Specific tactics to build rapport and possible long run implications for developing affective, calculative and normative commitment have been discussed in the “note to practitioner” section.Originality/valueUsing “broaden-and-build” theory, the study extends the literature by confirming the mediation influence of rapport on satisfaction and three types of commitment relationships.

Lean Six Sigma for small- and medium-sized manufacturing enterprises: a systematic review

2019 ◽  
Vol 36 (3) ◽  
pp. 378-397 ◽  
Author(s):  
Paul Alexander ◽  
Jiju Antony ◽  
Bryan Rodgers
Keyword(s):  
Systematic Review ◽  
Six Sigma ◽  
Lean Six Sigma ◽  
Future Research ◽  
Research Gaps ◽  
Systematic Review Methodology ◽  
Content Type ◽  
Manufacturing Enterprises ◽  
Three Stages ◽  
Practical Implications

Purpose The purpose of this paper is to explore the most common themes within Lean Six Sigma (LSS) relating to small- and medium-sized enterprises (SMEs) within manufacturing organisations and to identify the research gaps in the existing literature. Design/methodology/approach Tranfield et al.’s (2003) systematic review methodology was utilised encompassing three stages: planning, conducting and reporting/dissemination. Findings The literature revealed that there are many areas in which LSS has been utilised with varying successes. In total, 52 journals have been reviewed and it has been concluded that although LSS is a powerful methodology, there are many gaps that exist in the literature and further research is needed to address these in the field of LSS. Research limitations/implications The papers included in the systematic review were peer-reviewed papers available in English. Due to these limitations, relevant papers may have been excluded. Moreover, the authors have excluded all conference and white papers for their inclusion in this study. Practical implications It is vital that LSS practitioners are fully aware of the benefits, limitations and impeding factors when implementing a LSS initiative. Therefore, this paper could provide valuable insights to ensuring maximum value, is obtained from LSS implementation in SMEs. Originality/value This systematic review identifies research gaps in the current literature and highlighting areas of future research which will be beneficial to many SMEs in their pursuit of value optimisation.

Requirements, challenges and impacts of Lean Six Sigma applications – a narrative synthesis of qualitative research

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Alblooshi ◽  
Mohammad Shamsuzzaman ◽  
Michael Boon Chong Khoo ◽  
Abdur Rahim ◽  
Salah Haridy
Keyword(s):  
Six Sigma ◽  
Resistance To Change ◽  
Impact Category ◽  
Lean Six Sigma ◽  
Process Efficiency ◽  
Future Research ◽  
Narrative Synthesis ◽  
Qualitative Synthesis ◽  
Content Type ◽  
Research Studies

Purpose The purpose of this paper is to identify, present and categorise the main requirements, challenges and impacts of Lean Six Sigma (LSS) applications. Emphasis is given to the soft impacts of LSS applications, which are intangible in nature and difficult to quantify and measure, highlighting the most frequently cited ones. Design/methodology/approach A qualitative synthesis of the studies using the narrative synthesis approach is adopted to descriptively summarise and categorise the requirements, challenges and impacts of LSS applications. The studies were searched by using the following keywords: “LSS applications,” “LSS requirements,” “LSS challenges” and “LSS impacts” in almost all major electronic databases such as Emerald, Taylor and Francis, ScienceDirect and Wiley. A total of 116 articles published between 2007 and 2017 in 41 academic journals were collected and reviewed. Consideration was also given to a number of substantial publications in 2006, 2018 and 2019. Findings In addition to its process efficiency and financial impacts, LSS was found to have another impact category related to individual and organisational behaviours. Management commitment, training and organisational culture were concluded to be amongst the most important and required categories for successful LSS applications. It was also found that the lack of awareness of LSS tools and benefits and the lack of change management and resistance to change were amongst the most cited categories of implementation challenges. Research limitations/implications The studies published between 2007 and 2017 are mainly considered in this paper. It is believed that 10-year publication period considered in this research is sufficient to study the evolution, benefits, limitations and future trends of a particular research topic. However, the exclusion criteria used in the search process with respect to the articles’ year of publication and search terms and keywords may limit the generalisation of the research findings. In addition, the qualitative nature of this research study and the lack of empirical data to support its findings is another limitation that future research should consider. Practical implications This research paper may serve as a valuable source of information for LSS researchers as it will provide them with useful and new insights and directions for further research in LSS. It will also increase the awareness of LSS practitioners about the kind of impact LSS has, and therefore, achieve a better utilisation of its tools by ensuring availability of application requirements and overcoming application challenges. Originality/value This study differs from previous research studies as it focusses attention on the soft impacts of LSS applications and highlights them. The study identifies and prioritises LSS application impacts, requirements and challenges. The study on these aspects was found to be limited and lacking in previous research studies.

Celebrating a decade of International Journal of Lean Six Sigma – a bibliometric analysis to uncover the “as is” and “to be” states

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Praveen Puram ◽  
Anand Gurumurthy
Keyword(s):  
Bibliometric Analysis ◽  
Six Sigma ◽  
Lean Six Sigma ◽  
Future Research ◽  
Content Type ◽  
The Usa ◽  
Number Of Publications ◽  
The Uk ◽  
The Impact

Purpose International Journal of Lean Six Sigma (IJLSS) has completed a decade. To celebrate the same, this study aims to review the articles published in IJLSS from its inception to the year 2020. The journal’s trends and professional impact over the years are investigated and potential future research directions are proposed. Design/methodology/approach A bibliometric analysis comprising of citation, co-citation and keyword co-occurrence methods is used on all the articles published in IJLSS till the year 2020. Content analysis is further done to analyse the type of research, type of industry studied and the articles’ target audience. Findings The journal has improved its reputation, productivity and impact over the years. Currently, studies published in IJLSS have been cited more than 5,000 times, with the most prominent themes being Six Sigma, Lean Six Sigma (LSS) and Lean in manufacturing and services. Researchers from India, the USA and the UK have contributed a significant number of publications. Most of the work published is case-based. There is a need for more empirical or survey-based research having high generalizability. Future studies should also focus on integrating LSS with emerging topics such as sustainability, Industry 4.0 and the like. Research limitations/implications The study provides evidence of the impact of IJLSS and highlights the trend in the domain of LSS. It can be of use for the editorial board members to identify potential areas to focus on in the future. Researchers can use it to further their research by working on the research gaps identified. Originality/value This paper is the first to trace the progress of IJLSS from its inception till the year 2020.

Investigation and modeling of lean six sigma barriers in small and medium-sized industries using hybrid ISM-SEM approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahipal Singh ◽  
Rajeev Rathi
Keyword(s):  
Six Sigma ◽  
Structural Equation ◽  
Research Work ◽  
Lean Six Sigma ◽  
Equation Modeling ◽  
Original Research ◽  
Extensive Literature ◽  
Implementation Barriers ◽  
Interpretive Structural Modeling ◽  
Content Type

Purpose Lean six sigma (LSS) has attained a prominent position in mature organizations but small- and medium-sized enterprises (SMEs) are struggling in the proper implementation of LSS in their core business. This study aims to make a comprehensive analysis of LSS implementation barriers in SMEs so that LSS execution can be much fluent in SMEs. Design/methodology/approach This research work is carried out based on investigation of LSS barriers through extensive literature review. For validating the identified barriers, a questionnaire survey was conducted, and out of 400 samples, 260 responses received back. The collected responses are analyzed statistically and found 16 significant barriers. The finalized barriers are modeled using interpretive structural modeling (ISM) and clustered them through matrice d’impacts croisés-multiplication appliquée a un classement (MICMAC) analysis. Furthermore, to check the consistency of results, ISM-MICMAC outcomes are validated through structural equation modeling (SEM). Findings The result reveals that 16 LSS implementation barriers are finalized through expert’s opinion and validated through statistical reliability test with Cronbach’s alpha value of 0.820. The ISM model reveals that the management relevant barriers are exhibiting the leading role to influence the implementation of LSS in SMEs. Moreover, the obtained results validated through SEM are found in good agreement. Research limitations/implications During pairwise comparisons, there may be some prejudice and subjectivity as human judgments are engaged. Practical implications This study provides impetus to practitioners and consultant for the initiation of LSS in the business organization through tackling the LSS barriers as per their driving and dependence power. Originality/value In the past, limited studies had explored the LSS barriers, but a few studies analyzed the mutual relationship between barriers. No such study is reported in literature that validates the mutual interaction model of LSS barriers. Hence, this paper presents the original research work of identification and modeling of barriers associated with LSS implementation in SMEs through hybrid ISM-SEM approach.

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