Implementing Lean Six Sigma in financial services: the effect of motivations, selected methods and challenges on LSS program- and organizational performance

Abhishek Vashishth, Bart Alex Lameijer*, Ayon Chakraborty, Jiju Antony, Jürgen Moormann

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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Abstract

Purpose: The purpose of this paper is to contribute to the limited body of empirical knowledge on the impact of Lean Six Sigma (LSS) program implementations on organizational performance in financial services by investigating how antecedents of Lean Six Sigma program success (motivations, selected LSS methods and challenges) affect organizational performance enhancement via LSS program performance. Design/methodology/approach: A sample of 198 LSS professionals from 7 countries are surveyed. Structural equation modeling (SEM) is performed to test the questioned relations. Findings: This study’s findings comprise: (1) LSS program performance partially mediates the relationship between motivations for LSS implementation and organizational performance, (2) selected LSS method applications has a fully (mediated) indirect impact on organizational performance, (3) LSS implementation challenges also have an indirect (mediated) impact on organizational performance and (4) LSS program performance has a positive impact on organizational performance. Originality/value: The findings of this research predominantly provide nuances and details about LSS implementation antecedents and effects, useful for managers in advising their business leaders about the prerequisites and potential operational and financial benefits of LSS implementation. Furthermore, the paper provides evidence and details about the relationship between important antecedents for LSS implementation identified in existing literature and their impact on organizational performance in services. Thereby, this research is the first in providing empirical, cross-sectional, evidence for the antecedents and effects of LSS program implementations in financial services.

Original languageEnglish
Pages (from-to)509-531
Number of pages23
JournalInternational Journal of Quality and Reliability Management
Volume41
Issue number2
Early online date17 Jul 2023
DOIs
Publication statusPublished - 22 Jan 2024

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