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

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

International Journal of Production Economics, 2015, vol. 168, issue C, 105-117

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.

Keywords: Six Sigma; Knowledge creation; Organizational performance (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:168:y:2015:i:c:p:105-117

DOI: 10.1016/j.ijpe.2015.06.007

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