Lean Six Sigma Implementation Framework Using Resource-Based Theory Approach

Abstract

Resource-based theory (RBT) is one of the most popular paradigms in operations management. Lean Six Sigma (LSS) is the most widely used business improvement initiative for the last two decades. The previous LSS frameworks were concentrated on the LSS processes, and none of them proposed a link between organizational strategy, organizational resources and capabilities for gaining competitive advantage. The purpose of this chapter is to construct an RBT-based LSS framework. By reviewing the previous literature on RBT, LSS and organizational strategy, this chapter builds an implementation framework. This framework considers the firm resources, firm capability, competitive advantage, and LSS integration as the foundation of a firm's strategy. The research suggests that application of RBT can add richness to LSS implementation within an organization, which will bring practical implications for forming the resource-based strategy in the organizations leading to competitive advantage. This is the first chapter to suggest an integration framework of RBT with LSS for strategy implications.