Linking Six Sigma to business strategy: an empirical study in Taiwan

Abstract

PurposeThe purpose of this paper is to examine the relationship between Six Sigma and business strategy. The Six Sigma approach requires managers to examine processes from the customers' perspective, thus ensuring long‐term success.Design/methodology/approachThis study reviews the literature on the relationship between Six Sigma and business strategy, and examines how integrating business strategy with Six Sigma improvement action planning can produce competitive advantages. Moreover, a preliminary exploratory framework for linking Six Sigma to business strategy is presented, based on an empirical study of a Taiwan firm.FindingsSix Sigma implementations must be integrated with a company's business strategy. Six Sigma is a structured and disciplined way of solving critical business problems that cannot be addressed using other methods.Research limitations/implicationsThe linking of Six Sigma and business strategy framework is an advanced and coherent form of strategic thinking, which extends a strategic vision throughout all units of an organization and to meet core customer requirements.Originality/valueThe paper shows that, as a strategic‐oriented initiative, the context of Six Sigma activities must be adapted and modified to fit a firm's organizational strategy, Consequently, Six Sigma is central to the strategic drive of a company.