Dynamics of organizational learning and continuous improvement in six sigma implementation

Purpose – The purpose of this paper is to examine the dynamics of organizational learning and continuous improvement (CI) in the context six sigma implementation in business organizations operating in multicultural environments. Design/methodology/approach – A specific research question is: does learning mechanisms and continuous improvement practices support each other and how, and what type of learning can be identified in the improvement of business processes. The question is linked to one of the fundamental issues currently discussed in the field of organizational learning; how do organizations get “from here to there”, in other words, what is the dynamics of the processes of learning and how progressive learning is achieved. A case study of a few Finnish companies is made and a procedural implementation model is applied. Findings – The findings suggest that the learning process is characterized by measurement, detection and correction of errors, and cost reduction. In six sigma implementation, learning is a single‐loop type of learning. It is an incremental change process which reminds a technical variant of the learning organization. Continuous improvement occurs through procedural practices (the DMAIC‐cycle) which forms a structure for sustaining learning. Research limitations/implications – In this study, an essential question remains still unanswered: what type of learning is appropriate when organizational performance is enhanced by process improvements in production, delivery processes, etc. and what kind of learning mechanisms are the most supportive to continuous improvement practices. Further research is needed to find out how (if at all) the technical (single‐loop) approach develops into social (cultural and political) type of learning enabling sustainable capability development. For researching this a longitudinal case study setting would be required. As this paper has reported on the authors' first exploration, further research is needed to increase understanding of learning mechanisms that support CI practices. In further studies it is necessary to “dig” in real life practices of six sigma implementation more deeply. Practical implications – Management should invest in, and allocate resources to staff training in order to promote learning and CI. On the level of operational leadership, the role of the leaders needs to be more clearly defined and leaders should be empowered. Managerial implication is that the development of information systems is a necessity for supporting CI and progressive learning in six sigma implementation. Originality/value – Explains the dynamics of continuous improvement and learning process. Presents findings from a case study in three Finnish multinational companies. Presents a few key success factors for progressive organizational learning in conclusion.