An absorptive capacity interpretation of Six Sigma

Abstract

Purpose -The Six Sigma approach to business improvement has emerged as a phenomenon in both the practitioner and academic literature with potential for achieving increased competitiveness and contributing. However, there is a lack of critical reviews covering both theory and practice. Therefore, the purpose of this paper is to critically review the literature of Six Sigma using a consistent theoretical perspective, namely absorptive capacity. Design/methodology/approach -The literature from peer-reviewed journals has been critically reviewed using the absorptive capacity framework and dimensions of acquisition, assimilation, transformation, and exploitation. Findings -There is evidence of emerging theoretical underpinning in relation to Six Sigma borrowing from an eclectic range of organisational theories. However, this theoretical development lags behind practice in the area. The development of Six Sigma in practice is expanding mainly through more rigorous studies and applications in service-based environments (profit and not for profit). The absorptive capacity framework is found to be a useful overarching framework within which to situate existing theoretical and practice studies. Research limitations/implications -Agendas for further research from the critical review, in relation to both theory and practice, have been established in relation to each dimension of the absorptive capacity framework. Practical implications -The paper shows that Six Sigma is both a strategic and operational issue and that focussing solely on define, measure, analyse, improve control-based projects can limit the strategic effectiveness of the approach within organisations. Originality/value -Despite the increasing volume of Six Sigma literature and organisational applications, there is a paucity of critical reviews which cover both theory and practice and which suggest research agendas derived from such reviews.

Evaluating Six Sigma methodology to improve logistical measures of food distribution SMEs

“…The increase of the scope of the Six Sigma literature is reflected in studies covering service sectors (Delgado et al, 2010;McAdam and Hazlett, 2010), business functions and SMEs (McAdam and Hazlett, 2010). Six Sigma is recognised as a means of managing global competitiveness to pursue continuous improvement and is described by Johannsen…”

“…The Six Sigma methodology can also reduce the complexity of other supply chain performance measurement systems such as Supply Chain Operation Reference Model, which was recommended by the literature (Barber, 2008). As a top-down approach (Klefsjo et al, 2001) and its acquisition and transformation perspectives (McAdam and Hazlett, 2010), business transformation may be required to promote Six Sigma (Al-Mishari and Sulimans, 2008) and the approach is also heavily dependent on the collation and availability of factual and disciplined benchmarking and performance measurement information, training and education, top management commitment and leadership (Suresh et al, 2012;Kumar et al, 2011;Hilton and Sohal, 2012) but the rewards are as developed learning capabilities within managers and employees (Manville et al, 2012), increased customer satisfaction, reduced operation cost, increased revenue and improved processes (Kumar et al, 2006Andersson et al, 2006;Miguel and Anderietta, 2009;Antony and Desai, 2009;Thomas, 2006) although it is recognised as being potentially time consuming and complex (Chakrabarty and Chuan, 2009;Bendell, 2006) and the cost of training and infrastructure can create limitations (Antony, 2006). It was indicated that effective application of Six Sigma can help firms choose their competitive positioning such as focusing on internal efficiencies or differentiation strategies (Malik and Blumenfeld, 2012).…”

The knowledge transfer process in Six Sigma subsidiary firms

“…Despite the positive relationship often found in research (e.g., Braunscheidel et al, 2011;Choi et al, 2012;Shafer and Moeller, 2012;Swink and Jacobs, 2012), a significant controversy about the real benefits Current research efforts are thus devoted to analyzing the relationship between Six Sigma and knowledge management. Results show positive relationships between Six Sigma and variables such as organizational learning (e.g., Choo et al, 2007;Llorens and Molina, 2006;Malik and Blumenfeld, 2012;Wiklund and Wiklund, 2002), knowledge creation (e.g., Anand et al, 2010;Choo et al, 2007), absorptive capacity (e.g., Gutierrez Bustinza and Barrales- Molina, 2012;McAdam and Hazlett, 2010), and shared vision (Gutierrez, Llorens-Montes and Bustinza, 2009;Malik and Blumenfeld, 2012). The variable knowledge transfer has received no attention in the Six Sigma literature but is a promising focus for research due to the important benefits associated with this process.…”

Systems of Systems: Pure, and Applied to Lean Six Sigma

“…Currently there is little rigorous academic examination of the effective implementation of key factors governing the initial and ongoing success of the LSS strategy, and as yet there is no definitive model for its deployment or unified theory with general applicability (Furterer & Elshennawy, 2005;McAdam, & Hallet, 2010;Thomas et al, 2009;Tjahjono 2010;Naslund, 2008;Nonthaleerak and Hendry, 2008;Pepper and Spedding, 2010;Proudlove et al, 2008). Given that many desirable traits and methodological insights have been identified, there is a need to identify how they can be more effectively integrated and deployed.…”