Empirical examination of critical failure factors of continuous improvement deployments: stage-wise results and a contingency theory perspective

Abstract

Organisations implement various Continuous Improvement (CI) practices such as Total Quality Management, Lean, Six Sigma and Lean Six Sigma (LSS) for improving their processes. Drawing from the success and failure stories of these structured CI practices, scholars enumerated Critical Success Factors and Critical Failure Factors (CFFs). This study empirically examines the occurrence of various CFFs across different stages of CI deployment. Further, from a contingency theoretic perspective, this study investigates their associations with contextual variables by collecting survey data from 213 business units from the USA, the UK, China, and India. Principal Component Analysis is used to group CFFs across five CI deployment stages leading to an empirically refined framework for CI. Crosstab analysis using the chi-square likelihood ratio presented associations of CFFs with contextual variables. Findings reveal significant differences in the occurrence of CFFs across countries. There is evidence that LSS is less prone to failures when compared with TQM, Lean and Six Sigma. The occurrence of CFFs has been relatively lower in smaller and medium-sized enterprises operating in the service sector. Findings also reveal that lessons learned from each CI deployment cycle, contribute to organisational learning, and thence, leading to success at the strategic CI level of maturity.