¹Faculty of Economics and Administration, Department of Business Administration,
King Abdulaziz University, Jeddah, Kingdom of Saudi Arabia

Corresponding author email: salbliwi@kau.edu.sa

Article Publishing History

INTRODUCTION

In today’s world, businesses have become increasingly competitive which force companies in all industries to work efficiently to ensure sustainability, secure continuity, and profitability through the implementation of different methodologies (Flor Vallejo, 2020). Many modern industries implement Lean Six Sigma (LSS) approach to solve several quality-related problems in many of their processes and for dramatically improving the quality of services, products, and processes (Antony et al., 2012; Gupta et al. 2019). Albliwi (2016) stated that “LSS is a business improvement method aiming to reduce stockholder value by improving quality, speed, customer satisfaction, and cost”. It accomplishes this through merging tools and principles from Lean and Six Sigma. Motorola was the first to start using this method to express its quality program, and many international companies such as General Electric, Sony, Ford, Polaroid, and others have since proven successful in saving millions of dollars as a result of the correct implementation of the strategy Timans et al. (2016). In addition, there is a strong association between Six Sigma and the improvement of SMEs’ performance, operational efficiency, and improved product quality (Vinodh et al., 2012; Singh and Singh, 2020).

SMEs play a vital role in national economies around the world, generating employment, value-added, and participating in innovation. For these reasons, SMEs are central to the efforts needed to achieve inclusive growth. Furthermore, Tripathi (2019) added that SMEs play an essential role in the modern economy as they represent the backbone of any country attempting to flourish and develop its economy. Besides, SMEs contribute about 60% of employment and 40% of national income in nearly all countries. Organization for Economic Co-operation and Development (OECD) (2016) revealed that SMEs are key players in an economy and the broader eco-system of firms enabling them to adapt and thrive in a more open environment. They contribute more positively to the digital transformation, which is essential for boosting economic growth and delivering inclusive globalization. Generally, in all countries, at any level of development, SMEs have a crucial role to play in a country’s sustainable development. The SMEs sustainably is essential to poverty reduction, job creation, and sustain economic growth, (Tripathi 2019).

Based on previous studies conducted in the field of LSS in many organizations in Saudi Arabia, the researchers found that, though the popularity of the LSS method has been shown over the years to offer many benefits for those organizations who have implemented it, LSS received less attention in Saudi Arabia than in other countries and many KSA industries hesitate to implement this approach due to a lack of concrete evidence from empirical research into the current uptake of LSS in many eastern countries.  This study is important in recent time because it focus on SMEs which is one of the key objectives outlined in the document Saudi Vision 2030 which is “raising the level of SMEs’ contribution of 20 percent of GDP to 35 percent by 2030” (Rafiki, 2020).

Accordingly, and in line with vision targets, SMEs need to boost the improvement and development of their performance by 40 % to reach this goal. Therefore, the purpose of this study is to bridge the gap in the studies and to critically evaluate the present status of LSS implementation in Saudi Arabian SMEs by: Assessing the current state of LSS implementation in SMEs in KSA, identifying the significant success factors for the application of LSS in SMEs in KSA, ascertaining the benefits obtained from the application of LSS in SMEs in KSA and identifying the barriers obstructing the application of LSS in SMEs in KSA.

The main question derived for this study is: What is the current status of LSS implementation in SMEs in KSA? To accomplish the main study objectives, the researchers aim to concentrate on the following sub-questions:  What are the significant success factors for the application of LSS in SMEs in KSA? What are the benefits obtained from the application of LSS in SMEs in KSA? and what are the common barriers obstructing the application of LSS in SMEs in KSA?

MATERIAL AND METHODS

The current study adopted a descriptive research design which aims to provide a picture of a situation as naturally happens (Burns and Grove, 2003). Whereas research design is “the blueprint for the research process” (Cooper and Schindler, 2014). It precisely describes how the researcher conducted the study in scientific terms. It develops how the sample will be selected, specifies the data collection instrument used by the researchers and the research procedures. In this study, a descriptive research method used direct explanation, analysis, and description of a particular phenomenon without interference from the researcher (Cooper and Schindler, 2014). This method assisted the researchers to recognize and explain the features of the study population and their relationships. This study also employed an inductive approach which work from the “bottom-up, using the participants’ views to form broader themes and create a theory interconnecting the themes” (Creswell and Plano Clark, 2007).

This study employed a simple random sampling technique to select the study sample. A random sampling technique is “A method that gives all elements of a study population an equal chance of being sampled” Mugenda et al. (2012). The sample size comprises a group of respondents, representing a part of the target population who’s selected to serve that population (Cooper and Schindler, 2014). Therefore, the sample in this study was chosen randomly out of all Saudi SMEs to collect primary data which is “original search where collected data is designed by the researchers specifically to answer the research questions”. Cooper and Schindler (2014). The researchers were able to collect a total of 323 valid responses from the participants of the study without any missing from 2019 until 2020.

Data was collected through a survey questionnaire instrument that is “any written instruments that present respondents with a series of questions or statements to which they are to react either by writing out their answers or selecting from among existing answers” (Brown, 2001). Furthermore, a questionnaire is one of the most popular data gathering techniques in quantitative research. The survey is prevalent because it is comfortable to build, adaptable, and capable of collecting a vast amount of information immediately in such a way that it is quickly processable. Therefore, the researchers used questionnaires to collect primary data. The researchers used the software Statistical Package for Social Sciences (SPSS) version 24 to conduct statistical procedures for questionnaire data. The statistical analysis, including the descriptive and inferential statistical methods. The inferential statistics method includes the correlation coefficient; the mean values and standard deviations (SD) were employed by the researchers to represent the sample responses for each statement or item. The findings of the study have been presented, utilizing statistics and diagrams.

RESULTS AND DISCUSSION  

This section deals with finding answers to the main research questions regarding the status of LSS application within Saudi Arabia’s SMEs. Results of question one, which stated: What are the significant success factors for the application of LSS in SMEs in KSA?

Table 1. The participants’ perceptions regarding the significant success factors for the application of LSS in SMEs in KSA.

Factors			Mean	SD	Ranking
1	The company has a clear vision which supports quality methodologies such as Lean /Six Sigma/LSS	323	0.00	0.00	7
2	Employees’ engagement is supportive for Lean /Six Sigma/LSS implementation	37	3.14	1.46	6
3	Top management support and involvement in Lean /Six Sigma/LSS projects	37	3.39	1.23	3
4	The availability of a recognition and reward system	37	3.19	1.41	5
5	The company has a clear strategic direction and planning	37	3.24	1.32	4
6	Managers and employees have a high level of awareness about Lean /Six Sigma/LSS implementation	37	3.46	1.30	2
7	The company has an effective tool for communication of information	37	3.54	1.45	1
Quality of human capital			2.85	1.02

The results in Table 1 present the participants’ perceptions regarding the significant success factors for the application of LSS in SMEs in KSA; it is clear that the overall mean value reaches (2.85), with SD (1.02). This mean value indicated that most participants tend to stand at the neutral position of responsibility. This result suggests that some participants identify some success factors while others do not perceive it.To understand if there are significant success factors to the implementation of LSS in SMEs, the detailed analysis of participants’ responses is performed as follows:

The results in Table 1 reveal that about the critical success factor, “The company has an effective tool for communication of information,” it is noticed that the overall mean value to participants’ responses is (3.54) with SD (1.45). The results indicate that most participants agree that the company has a useful tool for the communication of information, which might contribute to the application of new methodology.

While, when participants provide their perceptions concerning statement 6 (“managers and employees have high awareness about Lean /Six Sigma/LSS implementation”), the results reveal that the mean value to participants’ responses is (3.46) with SD (1.30).  This results mean that most participants agree that managers and employees have high awareness about lean/Six Sigma/LSS implementation.

Whereas, when participants of the study responded regarding statement 3 (“top management support and involvement in Lean/Six Sigma/LSS projects”), the results show that the mean value is equal to (3.39) with SD (1.23), which indicates that most participants stand at the crossroads, that they neither agree nor disagree. Therefore, there is no clear indication that top management has a real plan to support the methodologies’ application.

On the other hand, when respondents provided their opinions regarding statement 2 (“employees’ engagement is supportive for Lean/Six Sigma/LSS implementation”), the results reveal that the mean value is (3.14) with SD (1.46). The results indicate that there is no clear-cut answer to whether an employee’s engagement is supportive of the implementation of the methodologies under investigation.

Finally, when participants showed their level of agreement with statement 1 (“the company has a clear vision which supports quality methodologies such as Lean /Six Sigma/LSS”), the results show that no one provides an answer to this question. Therefore, we conclude that all companies do not have a clear vision that supports quality methodologies implementation, such as Lean/Six Sigma/ LSS. Hence, we find that SMEs face various difficulties and problems implementing such technologies, including the lack of human resources who have the right level of knowledge and even the culture of implementing quality improvement methods that are not available for most companies.

Results of question two, which stated: “what are the benefits obtained from the application of LSS in SMEs in KSA? “

Table 2. The participants’ perceptions regarding the benefits obtained from the application of LSS in SMEs in KSA.

Factors		Mean	SD	Ranking
1	The application of Lean/Six Sigma/LSS has increased profit and financial savings	3.05	1.41	10
2	The application of Lean/Six Sigma/LSS has increased customer satisfaction	3.35	1.30	7
3	The application of Lean/Six Sigma/LSS has reduced the cost of poor quality	3.27	1.26	9
4	The application of Lean /Six Sigma/LSS has improved the quality of product and service	3.43	1.32	6
5	The application of Lean /Six Sigma/LSS has the time cycle of product and service	3.43	1.26	5
6	The application of Lean /Six Sigma/LSS has reduced the cycle time	3.30	1.31	8
7	The application of Lean/Six Sigma/LSS has reduced the wastage in the process	3.62	1.28	1
8	The application of Lean /Six Sigma/LSS has improved the effectiveness of internal communication	3.49	1.33	4
9	The application of Lean /Six Sigma/LSS has improved the key performance metrics	3.51	1.30	3
10	The application of Lean /Six Sigma/LSS has increased employee engagement and satisfaction	3.51	1.35	2
Quality of Human Capital		3.40	1.16

The results in Table 2 show the participants perceptions regarding the benefits of the application of LSS in SMEs in KSA.  The overall mean value is (3.40) with SD (1.16). This mean value indicates that there are various benefits of the application of the methodologies for the SMEs.  Concerning participants’ responses towards statement 7, (“The application of Lean/Six Sigma/LSS has reduced waste in the process”). The overall mean value to participants’ responses is reaching (3.62) with SD (1.28). Thus, we conclude that most participants agree that the application of Lean Six Sigma/ LSS represents the most significant benefit and has contributed positively to reducing the wastage in the operational process. Reducing waste in any operational process is among the first requirements of applying quality standards.

While, when participants provide their responses about statement 10 (“the application of Lean/Six Sigma/LSS has increased employee engagement and satisfaction”), the results found that the mean value to participants’ responses is (3.51) with SD (1.35). Therefore, we conclude that most participants agree that one of the benefits of applying quality methodologies is that it has increased employees’ engagement and satisfaction.

In addition to that, when respondents reported their views regarding statement 9 (“the application of Lean/Six Sigma/LSS has improved the key performance metrics”), the results reveal that the overall mean to participants’ perceptions is (3.51) with SD (1.30). Hence, we conclude that overall, participants agree that one of the benefits of the application of Lean/Six Sigma/LSS is that it improved the critical performance metrics.

On the other hand, when participants of the current study, provided their perceptions regarding statement 3 (“the application of Lean/Six Sigma/LSS has reduced the cost of poor quality”), the results reveal that the overall mean value is (3.27) with SD (1.26). The result indicates that participants neither agree nor disagree that the application has reduced the cost of poor quality. The variations among participants’ responses might be related to the lack of professional use of such methodologies in SMEs.

Finally, when participants reported their views to statement 1 (“the application of Lean/Six Sigma/LSS has increased profits and financial savings”), it is clear that the mean value is (3.05) with SD (1.41). This mean value indicates a high level of variation among participants regarding whether or not the application of such methodologies has increased the profit and financial saving in their companies.

Research of question three, which stated: “what are the common barriers obstructing the application of LSS in SMEs in KSA? “

Table 3. The participants’ perceptions regarding the common barriers/challenges that obstruct the application of LSS in SMEs in KSA.

Factors			Mean	SD	Ranking
1	Lack of Lean Six Sigma knowledge among the staff members	37	3.05	1.30	4
2	Lack of appropriate resources prevents the application of Lean/Six Sigma/LSS	37	2.95	1.22	6
3	Resistance to change among the employees	37	3.24	1.26	2
4	Organizational culture hinders the application of Lean/Six Sigma/LSS	37	2.97	1.26	5
5	Leadership style from top executive limits the application of Lean/Six Sigma/LSS	35	3.09	1.29	3
6	The complexity of using of Lean /Six Sigma/LSS tools and techniques	37	2.92	1.21	7
7	Absence of business strategy limits the application of Lean/Six Sigma/LSS	37	3.27	1.30	1
	1.      Quality of Human Capital		3.10	1.05

The results in Table 3 illustrate the participants’ perceptions regarding the common barriers or challenges that obstruct the application of LSS in SMEs in KSA. The overall mean value is (3.10), with SD (1.05). This mean value generally indicates that there is a moderate level of barriers that obstruct the application of LSS in SME organizations.

The results in Table 3 reveal that concerning participants’ perception towards statement 7 (“Absence of business strategy limits the application of Lean/Six Sigma/LSS”), the results show that the overall mean value is (3.27) with SD (1.30). The result indicates that most participants agree that the absence of a business strategy limits the application moderately.

Whereas, when participants provide their perceptions concerning statement 3 (“resistance to change among the employees”), the results reveal that the mean value to participants’ responses reaches (3.24) with SD (1.26), meaning illustrating that there is a moderate resistance to change among the employees towards the application of LSS in SMEs.

On the other hand, the response toward statement 2 (“Lack of appropriate resources prevents the application of Lean/Six Sigma/LSS”), the results found that the mean value to participants’ responses is (2.95) with SD (1.22).  This result shows there is a high level of variation among the participants regarding this statement.

Finally, when participants of the study report their perceptions regarding statement 6 (“The complexity of using of Lean/Six Sigma/LSS tools and techniques”), the results show that the mean value is equal to (2.92) with SD (1.22). This result indicates that the complexity of using such tools and techniques is not a critical barrier to obstruct the application.

The results of the study show that nearly all SMEs in KSA, represented by the SMEs who participated in this study, have never applied LSS (88.5%). Furthermore, even the 11.5% of the SMEs in this study that had used LSS were unaware of the importance of LSS application.  Hence, the absence of the implementation of LSS was strongly related to a lack of knowledge regarding the LSS principles, and the concept is new to most of them. Other factors contributed to the lack of application of LSS in Saudi SMEs, such as the non-existence of a quality department and lack of LSS related training Tyagi, (2019). Other reasons can be as found by Fonseca and Da Fonseca, (2017) who found that SMEs managers believes that ISO 9001 standards and some tools from Lean toolkit can be sufficient for SMEs success whereas no need for LSS implementation. The study also showed that among the negative factors is a lack of clear vision in most Saudi SMEs regarding LSS implementation.

The results reveal that none of the SMEs, have a clear vision that supports quality improvement methodologies such as Lean, Six Sigma, and Lean Six Sigma (LSS). This finding are strongly support the study by Tyagi, (2019) in Indian SMEs that concluded SMEs lack of vision is one of the main reasons for not implementing quality improvement methods. On the other hand, it was found that other companies have a useful tool for the communication of information and that managers and employees have high awareness about Lean/Six Sigma/LSS implementation. It was also found that there are various benefits of the application of Lean/Six Sigma/LSS in the SMEs. Among the most important ones reported by participants are that the use of Lean/Six Sigma/LSS has reduced the waste in the process (Bhaskar, 2020) and has increased employee engagement and satisfaction (Bhaskar, 2020).

In addition, the use of LSS contributed to the improvement of critical performance metrics. This result confirms that the application of LSS has introduced various benefits (Tyagi, 2019).The standard critical success factors for SMEs in KSA to apply the LSS are having adequate tools for communication and information, and a high level of awareness regarding the importance of LSS among managers and employees. Therefore, the absence of most of the critical success factors of implementing LSS in SMEs in KSA prevents its adoption.

In term of barriers the results show that there are no common barriers that obstruct the application of Lean/Six Sigma/LSS in SMEs. The result shows that most of the possible obstacles mentioned can be resolved if there is an actual adoption of the application of quality improvement methodologies. They were created to be implemented and incorporate certain principles and standards to be followed. Therefore, it can be an area for future research to investigate the reasons behind the lack of LSS implementation in SMEs as a methodology to improve their business operations.

Recommendations: Based on the findings of this study, the researcher recommends that companies should conduct workshops to spread knowledge concerning the effectiveness of LSS to increase productivity and improve the quality of outputs. Another recommendation is that Saudi SMEs need to set a clear vision and objectives for the successful implementation of LSS. The researchers also found that LSS training courses are necessary to build a sustainable environment for continuous growth and raise SME’s contribution to the global market. Furthermore, SMEs should encourage their technical staff to obtain new knowledge about LSS, such as its principles and guidance. Lastly, both governmental and private sectors have to offer the required infrastructure to ensure the successful implementation of LSS in all Saudi SMEs.

This research contributes to many personal such as academic, the study added to the area of LSS knowledge, reducing it into individual work evidence based on theoretical perspectives and research possibilities that can help shape forthcoming investigations on various phases of production and sustainability. Also, SMEs managers and directors worldwide can consider the benefits of LSS adoption in their operations to become more competitive. Besides, the findings of this study will help the government, investors, and customers to classify the relevant factors that hinder the implementation of LSS in SMEs in KSA and work on to avoid them and address these factors critically.

Furthermore, this study contributes to the decision-makers in both governmental and private sectors: the findings of this study might assist them by offering great insight into the significance of implementing LSS in SMEs for their financial growth.This research has some limitations; for example, the researchers focused only in terms of SMEs in KSA and did not consider large companies. Therefore, the researchers suggest to conduct empirical studies capturing the implementation experience of LSS in large enterprises vs. SMEs another area for future research is a study on the obstacles and challenges facing the implementation of LSS in Saudi SMEs.

CONCLUSION

This study concludes that LSS is an approach that learns from past failures, one of which is too little support for management. Focus on clients, processes, workers characterize LSS as a way of building and developing a brand-new company culture and providing organizations with a tool for competitive advantage. LSS is one of the significant methodologies of quality management, seeking to increase productivity and improve the quality of method outputs. It emphasizes that imperfection is an opportunity for improvement. LSS is strongly connected with the establishment of businesses, and the combination of Lean and Six Sigma can bring dramatic improvements to SMEs.  However, the finding of the current study indicated that almost all Saudi SMEs have never implemented LSS due to critical reasons such as lack of knowledge related to LSS and lack of quality improvement training related to performance.Besides, this study showed that many critical success factors could help Saudi SMEs implement LSS successfully; for instance, most Saudi SMEs in the survey have a useful tool for communication and information. Moreover, the managers and employees in these SMEs have a high level of awareness regarding the importance of LSS’s role in company development.

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