Exploring the Effect of Six Sigma Quality (SSQ) on Innovation and Organisational Ambidexterity

Abstract

Despite the huge success of Six Sigma Quality (SSQ) implementation by Motorola, General Electric and many others, the emphasis on efficiency through SSQ has left some leading innovative organizations such as 3M in a state of confusion. A controversial 2007 Business Week article claims that creativity can be affected as a result of SSQ being ingrained in a company’s culture. Therefore, this paper explores the effect of SSQ on innovation and organizational ambidexterity. A case study protocol was developed from the literature to gather qualitative data from four large Australian organizations: Securency, Qantas, Rio Tinto and Caterpillar Underground Mining. Multiple-cross case analysis revealed that SSQ seems to align very well with process innovation, where the organization has a well-defined process output to control. However, some tension exists between SSQ and product innovation, particularly in terms of the time expectation for SSQ to deliver results. Furthermore, our study shows that SSQ could have a positive impact on organizational ambidexterity as long as management recognizes that each innovation approach requires its own formula for success, and establishes a team that could manage the tension between the two cultures. Based on our findings we conclude that management must apply SSQ with judgment.