Six Sigma is a management philosophy that is widely accepted among global industries. This study reviews literature on the definitions of Six Sigma and business strategy. Also, the study constructs a preliminarily exploration model of integrating Six Sigma program with business strategy. The exploration model for business excellence includes independent dimensions of business strategy, Six Sigma implementation and the dependent dimension of quality performance. The dimensions of business strategy include the variables for organizational culture, organizational assessment, strategy formulation and improvement methodology. Meanwhile, the dimension of Six Sigma implementation includes steering organization of Six Sigma, skills of quality improvement, integrating orientation of quality improvement and performance bottom-line. The dependent dimension of quality performance is based on employees’ motivation, customer satisfactory, increasing profit and deceasing cost.
1. For an exploration model integrating Six Sigma activities with business strategy, the organizational culture variable is the most important factor. The top management must have commitment towards the Six Sigma activities, involvement in the Six Sigma training and emphasis on customer satisfaction to enhance the integration of Six Sigma with business strategy.
2. The more integrated the dimension of business strategy, and then the variable of steering organization is more confirmed. The variable of skills of quality improvement will produce efficiently, performance bottom-line will be good outcome and integrating orientation of quality improvement is positively.
3. The 8 variables with the model of integrating Six Sigma activities with business strategy are positively related with the index of quality performance. The variable of strategy formulation within the dimension of business strategy and the variable of integrating orientation of quality improvement within the dimension of Six Sigma implementation are most highly related with the index of quality performance. It means that Six Sigma strategy must be confirmed and the business resource must be integrated to reach quality performance.
4. The key factors in the predicted model of quality performance by multiple regression methodology are as follows in sequential order: integrating orientation of quality improvement, performance bottom-line, organizational assessment, improvement methodology, organizational culture, skills of quality improvement, and steering organization. The best predictor is the variable of integrating orientation of quality improvement. It implies that the quality activities must be combined with management by objective, quality skills training must be implemented continuously and quality plans by executed by project for reach best quality performance.
This study concludes that the firms do not necessarily have to adopt Six Sigma activity to reach excellent performance. Integrating the management activities of business strategy will help balance the technical elements of Six Sigma implementation for quality performance, and the business strategy dimensions that will make implementing Six Sigma more effective.