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Structural equation modelling on knowledge creation in Six Sigma DMAIC project and its impact on organizational performance

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  • Boon Sin, Ang
  • Zailani, Suhaiza
  • Iranmanesh, Mohammad
  • Ramayah, T.

Abstract

Six Sigma is a business strategy that helps organizations to improve organizational efficiencies and customer satisfaction; it decreases operating costs and increases profits. Numerous practitioner studies claim that Six Sigma improves organizational performance. However, empirical research in this area is limited. No detailed investigation exists on how Six Sigma leads to improvement of organizational performance. This study suggests that the link between Six Sigma and organizational performance can be explained and developed by integrating organizational knowledge creation processes. A theoretical research model is developed based on the literature. This study investigates the existence of a relationship among organizational knowledge creation processes (socialization, externalization, combination, and internalization) in Six Sigma DMAIC project, knowledge, Six Sigma project success, and organizational performance by using structural equation modeling. The survey study results show general support for the theoretical research model. Findings reveal that organizational knowledge creation processes positively affect knowledge. In turn, knowledge positively affects Six Sigma project success, and Six Sigma project success leads to improved organizational performance.

Suggested Citation

  • Boon Sin, Ang & Zailani, Suhaiza & Iranmanesh, Mohammad & Ramayah, T., 2015. "Structural equation modelling on knowledge creation in Six Sigma DMAIC project and its impact on organizational performance," International Journal of Production Economics, Elsevier, vol. 168(C), pages 105-117.
    • Handle: RePEc:eee:proeco:v:168:y:2015:i:c:p:105-117
    DOI: 10.1016/j.ijpe.2015.06.007
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    Cited by:

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    2. José Roberto Mendoza-Fong & Jorge Luis García-Alcaraz & Emilio Jiménez Macías & Nancy Liliana Ibarra Hernández & José Roberto Díaz-Reza & Julio Blanco Fernández, 2018. "Role of Information and Communication Technology in Green Supply Chain Implementation and Companies’ Performance," Sustainability, MDPI, vol. 10(6), pages 1-16, May.
    3. Fabiane Letícia Lizarelli & Jiju Antony & José Carlos Toledo, 2020. "Statistical thinking and its impact on operational performance in manufacturing companies: an empirical study," Annals of Operations Research, Springer, vol. 295(2), pages 923-950, December.
    4. Jorge L. García-Alcaraz & Liliana Avelar-Sosa & Juan I. Latorre-Biel & Emilio Jiménez-Macías & Giner Alor-Hernández, 2017. "Role of Human Knowledge and Communication on Operational Benefits Gained from Six Sigma," Sustainability, MDPI, vol. 9(10), pages 1-19, September.
    5. Yee, Rachel W.Y. & Guo, Yujuan & Yeung, Andy C.L., 2015. "Being close or being happy? The relative impact of work relationship and job satisfaction on service quality," International Journal of Production Economics, Elsevier, vol. 169(C), pages 391-400.
    6. Hamed Gholami & Norhazrina Jamil & Muhamad Zameri Mat Saman & Dalia Streimikiene & Safian Sharif & Norhayati Zakuan, 2021. "The application of Green Lean Six Sigma," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1913-1931, May.
    7. Jorge Luis García-Alcaraz & Arturo Realyvasquez-Vargas & Pedro García-Alcaraz & Mercedes Pérez de la Parte & Julio Blanco Fernández & Emilio Jiménez Macias, 2019. "Effects of Human Factors and Lean Techniques on Just in Time Benefits," Sustainability, MDPI, vol. 11(7), pages 1-20, March.
    8. Jorge Luis García-Alcaraz & Giner Alor-Hernández & Cuauhtémoc Sánchez-Ramírez & Emilio Jiménez-Macías & Julio Blanco-Fernández & Juan I. Latorre-Biel, 2018. "Mediating Role of the Six Sigma Implementation Strategy and Investment in Human Resources in Economic Success and Sustainability," Sustainability, MDPI, vol. 10(6), pages 1-21, June.
    9. Andrea Sujova & Lubica Simanova & Katarina Marcinekova, 2016. "Sustainable Process Performance by Application of Six Sigma Concepts: The Research Study of Two Industrial Cases," Sustainability, MDPI, vol. 8(3), pages 1-21, March.

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