Publisher : The Korean Society for Quality Management
DOI : 10.7469/JKSQM.2015.43.4.559
Title & Authors
The Impact of Six Sigma, Exploitation and Exploration on Performance Hwang, Gee-Hyun;
Purpose: Many firms have implemented Six Sigma in order to improve employee's creativity and performance. However, few researchers have studied the effect of Six Sigma on performance through creativity process. This study aims to investigate the impact of Six Sigma, exploitation, and exploration on performance. Methods: Based on literature review, this paper develops hypotheses and tests them by employing a structural equations model. Using survey data of 209 Six Sigma experts who have conducted Six Sigma projects from different companies, this study empirically shows that the activities for Six Sigma enhance exploitation, exploration, and performance. Results: Six Sigma affects exploration and exploitation, each of which in turn enhances performance. It is noted that Six Sigma has an indirect influence on performance through exploitation and exploration. Conclusion: Apart from Parast(2011) who insists that Six Sigma is effective in improving exploitation rather than exploration, this study suggest that Six Sigma can affect both in order to enhance corporate performance.
Six Sigma;Structured Methods;Exploration;Exploitation;Performance;
Al-Refaie, A., and Hanayneh, B. 2014. "Influences of TPM, TQM, Six Sigma practices on firms performance in Jordan."International Journal of Productivity and Quality Management 13(2):219-234.
Antony, J., and Banuelas, R. 2002. "Key Ingredients for the Effective Implementation of Six Sigma Program."Measuring Business Excellence 6(4):20-27.
Audia, P. G., and Goncalo, J. A. 2007. "Past Success and Creativity over Time: A Study of Inventors in the Hard Disk Drive Industry."Management Science 53(1):1-15.
Benner, M. J., and Tushman, M. 2002. "Process Management and Technological Innovation: A Longitudinal Study of the Photography and Paint Industries."Administrative Science Quarterly 47(4):676-706.
Braunscheidel, M. J., Hamister, J. W., Suresh, N. C., and Star, H. 2011. "An institutional theory perspective on Six Sigma adoption."International Journal of Operations & Production Management 31(4):423-451.
Choo, A. S., Linderman, K. W., and Schroeder, R. G. 2007. "Method and Psychological Effects on Learning Behaviors and Knowledge Creation in Quality Improvement Projects."Management Science 53(3):437-450.
Desai T. N., and Shrivastava R. L. 2010. "Six Sigma - A Breakthrough Improvement Strategy for Business Improvement - An Overview."International Journal of Research in Commerce and Management 1(5):88-99.
Fornell, C., and Larcker, D. F. 1981. "Evaluating Structural Equation Models with Unobservable Variables and Measurement Error."Journal of Marketing Research 39-50.
Hair, J. F., Black, B., Babin, B., and Anderson, R. E. 2010. Multivariate Data Analysis. Up. Saddle River NJ : 7th Pearson Prentice Hall.
Harry, M. J., and Schroeder, R. R. 2000. Six Sigma: The Breakthrough Management Strategy Revolutionising the World's Top Corporations. NewYork: Doubleday Currency.
He, Z. L., and Wong, P. K. 2004. "Exploration vs Exploitation: An Empirical Test of the Ambidexterity Hypothesis."Organization Science 15(4):481-494.
Hill, S. A., and Birkinshaw, J. 2014. "Ambidexterity and survival in corporate venture units."Journal of management 40(7):1899-1931.
Hindo, B. 2007. "At 3M, a Struggle between Efficiency and Creativity."Business Week 11:8-14.
Hoerl, R. W. 1998. "Six Sigma and the Future of the Quality Profession."Quality Progress 31(6):35-42.
Kwak, Y. H., and Anbari, F. T. 2006. "Benefits, obstacles, and future of Six Sigma approach." Technovation 26(5):708-715.
Lee, K. C., and Choi, B. 2006. "Six Sigma Management Activities and Their Influence on Corporate Competitiveness." Total Quality Management and Business Excellence 17(7):893-911.
Lee, W. L., Chiang, J. C., Wu, Y. H., and Liu, C. H. 2012. "How knowledge exploration distance influences the quality of innovation." Total Quality Management & Business Excellence 23(9-10):1045-1059.
Levinthal, D. A., and March, J. G. 1993. "The Myopia of Learning."Strategic Management Journal 14(S2):95-112.
Linderman, K., Schroeder, R. G., Zaheer, S., and Choo, A. S. 2003. "Six Sigma: A Goal-Theoretic Perspective."Journal of Operation Management 21:193-203.
March, J. G. 1991. "Exploration and exploitation in organizational learning."Organization Science 2(1):71-87.
Parast, M. M. 2011. "The effect of Six Sigma Projects on Innovation and Firm Performance." International Journal of Project Management 29(1):45-55.
Prieto, I. M., Revilla, E., and Rodriguez-Prado, B. 2009. "Managing the Knowledge Paradox in Product Development."Journal of Knowledge Management 13(3):157-170.
Rungtusanatham, M., Forza, C., Koka, B. R., Salvadora, F., and Nie, W. 2005. "TQM across Multiple Countries:Convergence Hypothesis versus National Specificity Arguments." Journal of Operations Management 23(1):43-63.
Seo, Y. W., Chae, S. W., and Lee, K. C. 2015. "The impact of absorptive capacity, exploration, and exploitation on individual creativity: Moderating effect of subjective well-being." Computers in Human Behavior 42:68-82.
Schroeder, R. G., Linderman, K., Leidtke, C., and Choo, A. S. 2008. "Six Sigma: Definition and Underlying Theory."Journal of Operations Management 26(4):536-554.
Stettner, U., and Lavie, D. 2014. "Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions."Strategic management journal 35(13):1903-1929.
Sutton, R. I., and Hargadon, A. 1996. "Brainstorming Groups in Context: Effectiveness in a Product Design Firm."Administrative Science Quarterly 41:685-718.
Yang, J. G., and Kim, J. K. 2011. "A Study of the Effects of Champion's Transformational Leadership on Belts' Creativity: Based on Mediate Effects of Belts' Intrinsic Motivation and Project's Learning and Growth."Journal of the Korean society for quality management 39(2):256-270.
Yi, R. Y., and Shin, I. J. 2009. "The effects of employee's success experience on business performance in six sigma activities."Journal of the Korean society for quality management 37(3):10-17.
Yoo, S. D. 1999. "Effect of Transformational and Transactional Leadership on Follower's Empowerment and Creativity."Journal of the Korean society for quality management 27(2):57-80.
Zu, X., Robbins, T. L., and Fredendall, L. D. 2010. "Mapping the critical links between organizational culture and TQM/Six Sigma practices."International Journal of Production Economics 123(1):86-106.