Lean Six Sigma Institutionalization And Knowledge Creation: Towards Developing Theory

A review of Lean Six Sigma (LSS) literature highlights two main issues: first, failures are extensively reported in LSS implementation; second, LSS, which is a knowledge-intensive performance improvement methodology building upon the use of data and scientific methods, is itself disconnected from knowledge management models. Building on a systematic review of literature, this paper develops a model for both the institutionalisation of LSS and how LSS practices can be orchestrated to trigger knowledge creation. The paper categorises LSS practices into 'core' and 'behavioral' and shows that these practices are supplementary to each other and together they enable institutionalisation of LSS in daily organisational routines. This point contrasts to earlier studies presenting LSS as a cache of tools and techniques and, thus, embodying a mechanistic approach. Findings show how LSS practices are capable of triggering knowledge creation. The paper concludes by asserting that rather than merely adding new practices, managers should also focus on aligning the existing ones. It follows that managers should view LSS as a strategic resource for sustainable competitive advantage.