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1 Forum Marketing Herausgegeben von K. Gelbrich, Ingolstadt, Deutschland R. Hünerberg, Kassel, Deutschland A. Mann, Kassel, Deutschland A. Töpfer, Dresden, Deutschland
2 Die zunehmende Globalisierung führt zu einem verschärften Wettbewerb, vor allem in den Bereichen Qualität, Zeit und Kosten. Vor diesem Hintergrund werden in der Schriftenreihe aktuelle Forschungsergebnisse sowohl zu strategischen Fragen der marktorientierten Unternehmensführung als auch zur operativen Unsetzung durch konsequente Kundenorientierung präsentiert. Dazu werden innovative Konzeptionen entwickelt, theoretische Ursache-Wirkungs-Beziehungen analysiert und pragmatische Gestaltungsempfehlungen gegeben. Herausgegeben von Professor Dr. Katja Gelbrich Katholische Universität Eichstätt-Ingolstadt Professor Dr. Reinhard Hünerberg Universität Kassel Professor Dr. Andreas Mann Universität Kassel Professor Dr. Armin Töpfer Technische Universität Dresden
3 Miriam Jacobs Cultural Impact on Lean Six Sigma and Corporate Success Causal Analyses Considering the Effects of National Culture and Leadership Foreword by Prof. Dr. Armin Töpfer
4 Miriam Jacobs Dresden, Germany Dissertation Technische Universität Dresden, 2014 ISBN DOI / ISBN (ebook) Library of Congress Control Number: Springer Gabler Springer Fachmedien Wiesbaden 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, speci cally the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on micro lms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a speci c statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper Springer Gabler is a brand of Springer Fachmedien Wiesbaden Springer Fachmedien Wiesbaden is part of Springer Science+Business Media (
5 To Jonna Lil
6 Foreword The management concept Lean Six Sigma claims to improve company performance by creating zero-defect and lean processes. Its enormous popularity is based on success stories from major multinational companies which have recognized early, that Lean Management and Six Sigma do not present competing philosophies but should be combined to one single concept in order to maximize the benefits of both approaches. Many companies have attempted to copy these success stories by investing heavily in the underlying methodology for structured process management to reach a rational and disciplined organization enabling processes, products and services with a zero-defect-quality. However not all companies have been successful, as they have underestimated the possible strong impact of human attitudes and behaviors embodied by concepts like the phenomena of National Culture and the concepts of Corporate Culture and Leadership Style. Miriam Jacobs performed an innovative scientific analysis on an advanced methodological level related to cultural and leadership aspects of Lean Six Sigma as she analyzed this area of conflicts in her research. She offers one of the first scientific approaches to understand the importance, to analyze cause-and-effects relations and to derive deeper insights into the functioning of such a comprehensive pattern of soft factors. Miriam Jacobs examines the relationships and impacts between the five variables Lean Six Sigma, Corporate Culture, National Culture, Leadership Style and Corporate Success. Conducting profound theoretical and methodological investigations lead to a consistent hypothesized model, which is tested with original data of a panel of Lean Six Sigma professionals around the globe. The results reveal that the concepts Corporate Culture and Leadership Style have the biggest impact on successful Lean Six Sigma implementation and Corporate Success while the phenomena of National Culture turns out to
7 have a minor influence. The analysis is complemented by a cluster analysis, disclosing that the underlying value dimensions in the variables Corporate Culture and Leadership need to be equally balanced in order to increase competitiveness of a company. To account for the complexity and interdependencies between the analyzed variables this research uses structural equation modeling focusing on Partial-Least-Squares (PLS) as the more advanced and innovative technique of this methodology. This is even more convincing as the hypothesized model owns characteristics which are not suitable for the more traditional covariance based approaches. This excellent PhD thesis with a wide range of advanced recognitions related to this field of research legitimates the inclusion into our series of outstanding scientific research. We hope that this publication in English will spread the recognitions worldwide and will advertise the results to a broad audience of professionals in the field of Lean Six Sigma. Practical insights of behavior and management approaches can be derived from the scientific concept and findings on this high level of management. The assessment of opportunities and risks of actions for managers in certain situations give hands-on guidance and inseminate further research about the cultural impacts in quality management. Prof. Dr. Armin Töpfer
8 Acknowledgements The idea for this thesis was born during my international assignment in a multinational pharmaceutical company, when I witnessed the implementation of Lean Six Sigma on a global level in affiliates around the world. I was involved in the first projects implemented in Germany in 2005, with tremendous effects on productivity and a huge engagement of the majority of employees. Later on, as a certified Green Belt and Black Belt, I had the chance to lead several projects in a phase, where the decreased popularity of the Lean Six Sigma concept had lost many promoters in the company, and people tried to escape from being involved in any project work around it. Exchanging the experience with colleagues in other countries my first impression was that Lean Six Sigma adoption and implementation success depended on the country or the leadership involved. Having the chance to dive deeper into the dynamics of Corporate Culture and Lean Six Sigma through my Master thesis in 2007, my interest in further research around Lean Six Sigma grew, sharpening the topic of this research. I would like to thank Prof. Dr. Armin Töpfer, who has supported me since my MBA in Health Care Management at the Dresden International University and has encouraged me for my research from the beginning on. Without his confidence in me managing such a complex topic, without his guidance, motivation and the insightful discussions the results of this research would have not been possible. I would also like to thank the whole Research Group of Corporate Management and Marketing, including Martina Voß, Anne Maertins, Patricia Leffler and Silke Schäfer for their addressability and advice in many formal aspects around my dissertation project. Special thanks go to my research fellow Steffen Silbermann for his good advice, encouragement and the profitable discussions.
9 I also thank Prof. Dr. Udo Broll for being the second reviewer of my thesis, Prof. Dr. Bernhard Schipp for taking the chair of examination board, and Prof. Dr. Marcel Thum for taking the role as second examiner. Many more persons have supported me during my thesis work. First, I would like to thank my little four year old daughter Jonna Lil, who was not even born when I started. The literature review would have not been possible without her natural favor for sleeping and the finalization not without her understanding and happiness discovering the world on her own. I thank Jonna s father Frank Stache for his support and for taking care of Jonna all the time when I spent long hours on this research. I also thank my friend Mareike Paul for her flexibility and dedication in being the second mom for Jonna. Special thanks go to my husband Mario for being my solid rock in turbulent waters and for standing behind me in the end-phase of my project. His enthusiasm, patience and understanding gave my research the final touch. Last but not least I thank my family, my mom and dad, my sister Anne and my brother Momme and all my friends and great colleagues for their constant belief in me and their support. This work has given me the chance to get to know many bright people and research fellows and I have learned many new methods and approaches. But overall, I have grown personally in a way which I would have never expected before. It has increased my self-confidence that my passion and ambition will help to reach many more milestones in life. I dedicate this work to my daughter and to all other ambitious women, who face the same challenges and expect the same rewards. Miriam Jacobs
10 Overview List of Figures List of Tables Glossary xix xxiii xxvii 1 Introduction 1 2 Theoretical Foundations 13 3 Literature Review 67 4 Methodological Foundations Empirical Study and Results Summary and Conclusion 233 A Survey Questionnaire 249 B Letters for Survey Distribution 259 C Operationalization of Measurement Models 263 D Clusters 269 E Details of Research Analysis 275 References 281
11 Contents List of Figures List of Tables Glossary xix xxiii xxvii 1 Introduction Overview and Problem Statement Purpose and Research Questions Conceptual Framework and Methodology Theoretical Foundations The Concept of Lean Six Sigma Roots and Definition of Lean Management Roots and Definition of Six Sigma The Character of Lean Six Sigma Definition of Organization and Corporation The Concept of Corporate Success Definition of Corporate Success Measurement of Corporate Success The Concept of Corporate Culture Definitions of the Underlying Concept Organizational Culture Definition of Corporate Culture The Concept of National Culture Definition and Values of National Culture Value Based Frameworks Exploring National Culture... 42
12 xiv Contents Hofstede s Cultural Dimensions Schwartz s Cultural Values The World Values Survey The GLOBE Study Other National Culture Frameworks Evaluation of the National Culture Frameworks The Role and Concept of Leadership Style Definition and Behaviors of Leadership Style Charismatic and Transformational Leadership Summary of Definitions and Research Framework Literature Review Structure and Methodology of the Literature Review The Relationship between Lean Six Sigma and Corporate Success Six Sigma Benefits Lean Management and Performance Outcomes TQM and Performance Outcomes Hypothesized Relationship between Lean Six Sigma and Corporate Success The Relationship between Corporate Culture and Corporate Success Bivariate Analyses of Corporate Culture and Corporate Success Multivariate Analyses of Corporate Culture and Corporate Success Hypothesized Relationship between Corporate Culture and Corporate Success The Relationship between Corporate Culture and Lean Six Sigma Six Sigma and Corporate Culture Lean Six Sigma and Corporate Culture TQM and Corporate Culture Hypothesized Relationship between Lean Six Sigma and Corporate Culture The Impact of National Culture National Culture and Quality Management Six Sigma and National Culture
13 Contents xv Lean Management and National Culture (T)QM and National Culture National Culture and Corporate Culture National Culture and Leadership Style Hypothesized Impact of National Culture The Impact of Leadership Style Leadership Style and Quality Management Leadership Style and Corporate Culture Leadership Style and Corporate Success Hypothesized Impact of Leadership Style Summary of the Literature Review and Hypothesized Model Methodological Foundations Structural Equation Modeling Overview of SEM SEM and Causal Modeling Reflective and Formative Measurement Models Partial Least Squares Path Modeling (PLS) Assessment of the Measurement Models with PLS Assessment of the Structural Model with PLS Assessment of the Overall Modell with PLS Level of Analysis Operationalization of the Concepts Operationalization of Lean Six Sigma Operationalization of Corporate Success Operationalization of Corporate Culture Operationalization of National Culture Operationalization of Leadership Style Statistical Survey Questions Design of the Structural Equation Model
14 xvi Contents 5 Empirical Study and Results Data Collection Procedure Target Population and Sample Survey Distribution Analysis Descriptive Sample Statistics Assessment of the Reflective Measurement Models Reflective Measurement Models for Lean Six Sigma Reflective Measurement Models for Corporate Success Reflective Measurement Models for Corporate Culture Reflective Measurement Models for Leadership Style Reflective Measurement Models for National Culture Assessment of the Formative Measurement Models Assessment of the Structural Model Lean Six Sigma and Corporate Success Corporate Culture and Corporate Success Corporate Culture and Lean Six Sigma The Impact of National Culture The Impact of Leadership Style Cluster Analysis Results Summary Summary and Conclusion Summary of Key Findings Limitations and Directions for Future Research Practical Implications and Final Conclusions A Survey Questionnaire 249 A.1 Introduction A.2 Lean Six Sigma A.3 Corporate Success A.4 Corporate Culture A.5 Leadership Style A.6 National Culture
15 Contents xvii A.7 Statistics B Letters for Survey Distribution 259 B.1 Discussion Thread in LinkedIn groups B.2 Individual Invite to LinkedIn Members B.3 Reminder of October 23rd, B.4 Reminder of December 11th, C Operationalization of Measurement Models 263 C.1 Measurement Model Lean Six Sigma (A1) C.2 Measurement Model Corporate Success (C) C.3 Measurement Model Corporate Culture (A2) C.4 Measurement Model National Culture (B1) C.5 Measurement Model Leadership Style (B2) D Clusters 269 D.1 Cluster D.2 Cluster D.3 Cluster D.4 Cluster E Details of Research Analysis 275 E.1 Levels of Research Analysis E.2 Current Literature on (Lean) Six Sigma References 281
16 List of Figures 1.1 Relevant Research Fields Research Question R Research Question R Research Question R Research Question R Flow of the Research Dramaturgy of the Research Levels of Research Design Chronological Flow of the Research Focus of Six Sigma vs. TQM Six Sigma Framework Expanded Six Sigma Framework Strategic Intent of Lean Six Sigma Formula of Successful Lean Six Sigma Implementation The Social Landscape of Organizations The Chain to Corporate Success Performance Evaluation of Human Resources The Three Levels of Culture Levels of Culture Orientation in Leadership Studies A Framework of Personnel Leadership Interaction between Transformational and Transactional Leadership Overview of Research Questions... 65
17 xx List of Figures 3.1 Flow of the Literature Review Flow of Section Extract of Hypothesized Model (A1-C) Flow of Section Four Cultural Traits Model of Yilmaz et al. [2005] Model of Zheng et al. [2009] Extract of Hypothesized Model (A2-C) Flow of Section Results of Stache [2007] Model of McNabb and Sepic [1995] Extract of Hypothesized Model (A1-A2) Flow of Section Model of Kanji and Yui [1997] Hypothesized Model of Kyoon Yoo et al. [2006] Self-Construals According to Markus and Kitayama [1991] Model of Offermann and Hellmann [1997] Model of Hofstede et al. [1990] Extract of Hypothesized Model (Impact B1) Flow of Section Model of Juhl et al. [2000] Model of Waldman [1993] Model of Young [2000] Model of Tsui et al. [2006] Extract of Hypothesized Model (Impact B2) Hypothesized Model SEM Overview SEM Process Multidimensional Construct for National Culture Evaluation of SEM-Models with PLS Hypothesized SEM Sampling Overview
18 List of Figures xxi 5.2 Flow of Data Analysis Path Model in SmartPLS (Bootstrap 5000) Path Model (Version 2) in SmartPLS (PLS Algorithm) Revised Path Model (Version 3) in SmartPLS (PLS Algorithm) Suggested Modifications of Revised Path Model (Version 3) Summary of Key Recommendations C.1 Measurement Model Lean Six Sigma (A1) C.2 Measurement Model Corporate Success (C) C.3 Measurement Model Corporate Culture (A2) C.4 Measurement Model Leadership Style (B2) C.5 Measurement Model National Culture (B1) D.1 Cluster D.2 Cluster D.3 Cluster D.4 Cluster
19 List of Tables 2.1 The Dynamic Multi-dimensional Performance Model (DMP) Cultural Definitions Cultural Typologies National Culture Frameworks GLOBE s Nine Cultural Dimensions Assessment of National Culture Frameworks Far-from-action Leadership Concepts Close-to-action Leadership Concepts The Multifactor Leadership Questionnaire (MLQ) The Conger-Kanungo Scales (CKS) Summary of Research Concept Definitions Databases used for the Literature Review Search Terms used for the Literature Review Research on Six Sigma and Corporate Success Key Findings of Zu et al. [2008] Research on Lean Management and Corporate Success Research on TQM and Performance Research on TQM and Corporate Success Hypothesized Relationship between Lean Six Sigma and Corporate Success Research on Corporate Culture and Corporate Success Bivariate Analyses Corporate Culture and Corporate Success Multivariate Analyses Corporate Culture and Corporate Success Hypothesized Relationship between Corporate Culture and Corporate Success
20 xxiv List of Tables 3.13 Research on Lean Six Sigma and Corporate Culture Key Findings of Irani et al. [2004] Key Findings of Dahlgaard and Dahlgaard-Park [2006] Hypothesized Relationship between Lean Six Sigma and Corporate Culture Research on Quality Management and National Culture Characteristics of National Culture in UK and Japan QM Matrix of Lagrosen [2002] QM Matrix of Lagrosen [2003] Related research to QM and National Culture Research on Corporate Culture and National Culture Research on Leadership and National Culture National Culture and Management Activities National Culture and Managerial Competency Hypothesized Impact of National Culture Research on Leadership Style and Corporate Culture Hypothesized Impact of Leadership Style Summary of Hypotheses Formative and Reflective Indicators Advantages of PLS Assessment of Reflective Measurement Models Assessment of Formative Measurement Models Measurement Model Assessment Structural Model Assessment Complete PLS Model Assessment Items for Lean Six Sigma Items for Corporate Success Items for Corporate Culture Items for National Culture Items for Leadership Style LinkedIn Target Groups Field Report Nationality Region
21 List of Tables xxv 5.4 Age Groups Number of Projects Groups Company Size Sector Sector and Functional Area Factor Analysis Lean Six Sigma Assessment of Reflective Measurement Models A1-1 to A Factor Analysis Corporate Success Assessment of Reflective Measurement Models C-1 to C Factor Analysis Corporate Culture Assessment of Reflective Measurement Models A2-1 to A Factor Analysis Leadership Style Assessment of Reflective Measurement Models B2-1 to B Preliminary Factor Analysis National Culture Factor Analysis National Culture Assessment of Reflective Measurement Models B1-1 to B Significance of Weights Structural Model Assessment Effect Size of A2 and B Predictive Relevance Evaluation of the Hypothesized Relationship between Lean Six Sigma and Corporate Success Evaluation of the Hypothesized Relationship between Corporate Culture and Corporate Success Evaluation of the Hypothesized Relationship between Lean Six Sigma and Corporate Culture Evaluation of the Hypothesized Impact of National Culture Evaluation of the Hypothesized Impact of Leadership Style Cluster Analysis Confirmed Hypotheses Cluster Profiles Research Limitations
22 xxvi List of Tables 6.2 Cluster Challenges Practical Guidance E.1 Levels of Research Analysis E.2 Research on Lean Six Sigma and Corporate Success E.3 Recent Research on Six Sigma and Corporate Success
23 Glossary 6S B2B BB CBSEM CEO CFM CI CorpCult CSF CTQ CVF Six Sigma Business to business Black Belt Covariance-Based Structural Equation Modeling Chief Executive Officer Cross-functional management Continuous improvement Corporate Culture Critical success factor Critical to customer requirements Competing values framework DMAICR Process steps of Six Sigma: Define, Measure, Analyze, Improve, Control and Reporting DMP DPMO EBIT EMEA GE GLOBE HLM HR Dynamic multi-dimensional performance framework Defects per million opportunities Earnings before interest and taxes Europe/Middle East/Africa General Electric Company Global Leadership and Organizational Behavior Effectiveness Research Program Hierarchical Linear Model Human Resources
24 xxviii Glossary JIT L6S MBB MBNQA MCS MIT MNC NatCult NPD OLC OrgCult PDCA PDM PLS QM ROA ROI ROS SCP SEM SOO TPS TQM WVS Just In Time Lean Six Sigma Master Black Belt Malcolm Baldrige National Quality Award Management control system Massachusetts Institute of Technology Multinational Company National Culture New product development Organizational Learning Culture Organizational Culture Process steps of the Deming cycle: Plan, Do, Check, Act Participation in decision-making Partial Least Squares Quality Management Return on assets Return on investment Return on sales Structure-conduct-performance paradigm Structural Equation Model Survey of Organizations Toyota Production System Total Quality Management World Values Survey
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