Six sigma, absorptive capacity and organisational learning orientation

Abstract

The importance of the Six Sigma methodology in industry is growing constantly. However, there are few empirical studies that analyze the advantages of this methodology and its positive effects on organizational performance. The purpose of this paper is to extend understanding of the success of Six Sigma quality management initiatives by investigating the effects of Six Sigma teamwork and process management on absorptive capacity. It also seeks to understand the relation between absorptive capacity and organizational learning as two sources of sustainable competitive advantage. The information used comes from a larger study, the data for which were collected from a random sample of 237 European firms. Of these 237 organizations, 58 are Six Sigma organizations. Structural Equation Modelling (SEM) was used to test the hypotheses. The main findings show that Six Sigma teamwork and process management positively affect the development of absorptive capacity. A positive and significant relationship is also observed between absorptive capacity and organizational learning orientation. The findings of this study justify Six Sigma implementation in firms. This study provides us with an in-depth understanding of some structural elements that characterize the Six Sigma methodology, enabling us to provide an explanation for its success.