Abstract
This study aims to build a model of critical success factors in the application of Six Sigma for Indonesian small and medium industries and their relation to the industry performance. The critical success factors, successful Six Sigma implementation and the impact on industry performance are validated and analyzed. The method used in this study is Structural Equation Modeling (SEM) based on Partial Least Square (PLS) by using SmartPLS software. This study uses 54 data from Indonesian small and medium industries that have implemented Six Sigma. The results of this study indicate that a critical success factors that has a positive impact on the successful Six Sigma implementation is the involvement and commitment top management, training and education, cultural change and industrial infrastructure. It is surprising that teamwork has a negative impact on the successful Six Sigma implementation. In addition, the successful Six Sigma implementation has a positive impact on the performance of Indonesian small and medium industries. Then, the model is valid to shows the relationship between critical success factors in the successful Six Sigma implementation on the performance of small and medium industries in Indonesia.
Highlights
In Southeast Asia (ASEAN), Indonesia becomes the country with the highest Gross Domestic Product
The results show that the path for TW Six Sigma (SS), training and education (TRA) cultural change (CUL), and TRA TW have negative magnitude so that according to the path coefficient test, it is considered no effect on the model
The purpose of this research is to build a model of Six Sigma implementation based on critical success factors, to study the relationship between critical success factors for successful implementation of Six Sigma in small and medium industries in Indonesia, to study the relationship between successful implementation of Six Sigma on the performance of small and medium industries in Indonesia, confirmed the model developed for small and medium industries in Indonesia
Summary
In Southeast Asia (ASEAN), Indonesia becomes the country with the highest Gross Domestic Product. Gross Domestic Product is a summary of the number of products produced in a country within a year [2] and is an important variable in analyzing a country's economic growth [3]. As much as 20.51% of Gross Domestic Product in Indonesia is produced by manufacturing industry [4]. A study shows that the success of small and medium industries has a direct impact on economic development in developed and developing countries [6]. They have the ability to produce products with minimum cost, pioneers in the field of innovation and have a high flexibility that enables them to meet customer needs [7]. In Indonesia the definition of industrial scale is regulated in the regulation of the Minister of Industry number 64 of 2016 [9]
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