Correlation between lean six sigma implementation, adoption readiness and SME performance in Malaysian manufacturing firms

Lean Six Sigma (LSS) is considered as the current trend method of Quality Management in large enterprises. Yet, its implementation in small and medium sized enterprises is still at an early stage. Small and medium companies have not received sufficient attention regarding the critical success fac...

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Main Author:	Raidah, Rami Abdulhakeem Hasan Ba
Format:	Thesis
Language:	English
Published:	2021
Subjects:	Six sigma (Quality control standard) - Case studies Manufacturing industries - Malaysia Service industries - Malaysia
Online Access:	http://psasir.upm.edu.my/id/eprint/92993/1/FK%202021%2084%20-%20IR.1.pdf
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id	my-upm-ir.92993
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spelling	my-upm-ir.929932022-10-18T04:04:58Z Correlation between lean six sigma implementation, adoption readiness and SME performance in Malaysian manufacturing firms 2021-02 Raidah, Rami Abdulhakeem Hasan Ba Lean Six Sigma (LSS) is considered as the current trend method of Quality Management in large enterprises. Yet, its implementation in small and medium sized enterprises is still at an early stage. Small and medium companies have not received sufficient attention regarding the critical success factors (CSFs) to LSS implementation, however 98.5% business establishments in Malaysia are SMEs. Literature review supported that there is an agreement about the importance of CSFs to LSS implementation, yet there is no agreement about what constitutes these CSFs. Further, just few studies are considering the outcome of LSS in manufacturing SMEs performance. Moreover, very few publications to date have scientifically measured the readiness for LSS deployment in manufacturing SMEs context. Accordingly, a standard model for CSFs of LSS implementation is still lacking in the current literature related to SMEs. Recognizing the severe global competition encountering Malaysian market and the influential role of SMEs in enhancing Malaysian economy, there is a need to emphasize the ability of manufacturing SMEs in achieving perfection and excellence in all operational dimension including Quality Management. This study investigated the direct relationship between CSFs to LSS implementation and manufacturing SMEs performance. Furthermore, this study investigated the moderation role of adoption readiness on the direct relationship between CSFs to LSS implementation and manufacturing SMEs performance. The present study limited its scope within the context of Malaysian manufacturing SMEs. Survey-based method has used to collect data. As current literature lack of using an advance analysis method such as structural equation modeling, Variancebased SEM, which is known as SmartPLS method is applied in this study. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) have used to assess convergent validity, discriminate validity, unidimensionality, and to test the goodness of model fit and to test the hypotheses. This study found that top management commitment, supplier quality management, training and education, reward and recognition system, process audit are positively influence on manufacturing SMEs performance. However, linking LSS to SME strategy was found not effective on manufacturing SMEs performance. Moreover, the study found that the adoption readiness only moderates the direct relationship between top management commitment and manufacturing SMEs performance. Further, this research ended by developing a model for implementing LSS successfully in Malaysian manufacturing SMEs. The recommendations and implication also have provided in this research. Six sigma (Quality control standard) - Case studies Manufacturing industries - Malaysia Service industries - Malaysia 2021-02 Thesis http://psasir.upm.edu.my/id/eprint/92993/ http://psasir.upm.edu.my/id/eprint/92993/1/FK%202021%2084%20-%20IR.1.pdf text en public doctoral Universiti Putra Malaysia Six sigma (Quality control standard) - Case studies Manufacturing industries - Malaysia Service industries - Malaysia Sulaiman, Shamsuddin
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
advisor	Sulaiman, Shamsuddin
topic	Six sigma (Quality control standard) - Case studies Manufacturing industries - Malaysia Service industries - Malaysia
spellingShingle	Six sigma (Quality control standard) - Case studies Manufacturing industries - Malaysia Service industries - Malaysia Raidah, Rami Abdulhakeem Hasan Ba Correlation between lean six sigma implementation, adoption readiness and SME performance in Malaysian manufacturing firms
description	Lean Six Sigma (LSS) is considered as the current trend method of Quality Management in large enterprises. Yet, its implementation in small and medium sized enterprises is still at an early stage. Small and medium companies have not received sufficient attention regarding the critical success factors (CSFs) to LSS implementation, however 98.5% business establishments in Malaysia are SMEs. Literature review supported that there is an agreement about the importance of CSFs to LSS implementation, yet there is no agreement about what constitutes these CSFs. Further, just few studies are considering the outcome of LSS in manufacturing SMEs performance. Moreover, very few publications to date have scientifically measured the readiness for LSS deployment in manufacturing SMEs context. Accordingly, a standard model for CSFs of LSS implementation is still lacking in the current literature related to SMEs. Recognizing the severe global competition encountering Malaysian market and the influential role of SMEs in enhancing Malaysian economy, there is a need to emphasize the ability of manufacturing SMEs in achieving perfection and excellence in all operational dimension including Quality Management. This study investigated the direct relationship between CSFs to LSS implementation and manufacturing SMEs performance. Furthermore, this study investigated the moderation role of adoption readiness on the direct relationship between CSFs to LSS implementation and manufacturing SMEs performance. The present study limited its scope within the context of Malaysian manufacturing SMEs. Survey-based method has used to collect data. As current literature lack of using an advance analysis method such as structural equation modeling, Variancebased SEM, which is known as SmartPLS method is applied in this study. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) have used to assess convergent validity, discriminate validity, unidimensionality, and to test the goodness of model fit and to test the hypotheses. This study found that top management commitment, supplier quality management, training and education, reward and recognition system, process audit are positively influence on manufacturing SMEs performance. However, linking LSS to SME strategy was found not effective on manufacturing SMEs performance. Moreover, the study found that the adoption readiness only moderates the direct relationship between top management commitment and manufacturing SMEs performance. Further, this research ended by developing a model for implementing LSS successfully in Malaysian manufacturing SMEs. The recommendations and implication also have provided in this research.
format	Thesis
qualification_level	Doctorate
author	Raidah, Rami Abdulhakeem Hasan Ba
author_facet	Raidah, Rami Abdulhakeem Hasan Ba
author_sort	Raidah, Rami Abdulhakeem Hasan Ba
title	Correlation between lean six sigma implementation, adoption readiness and SME performance in Malaysian manufacturing firms
title_short	Correlation between lean six sigma implementation, adoption readiness and SME performance in Malaysian manufacturing firms
title_full	Correlation between lean six sigma implementation, adoption readiness and SME performance in Malaysian manufacturing firms
title_fullStr	Correlation between lean six sigma implementation, adoption readiness and SME performance in Malaysian manufacturing firms
title_full_unstemmed	Correlation between lean six sigma implementation, adoption readiness and SME performance in Malaysian manufacturing firms
title_sort	correlation between lean six sigma implementation, adoption readiness and sme performance in malaysian manufacturing firms
granting_institution	Universiti Putra Malaysia
publishDate	2021
url	http://psasir.upm.edu.my/id/eprint/92993/1/FK%202021%2084%20-%20IR.1.pdf
_version_	1776100265947037696

Correlation between lean six sigma implementation, adoption readiness and SME performance in Malaysian manufacturing firms

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