Process-based capability improvement through Six Sigma for multi-type customers

Pao Yue-kong Library Electronic Theses Database

Process-based capability improvement through Six Sigma for multi-type customers

 

Author: Wu, Wai-shing
Title: Process-based capability improvement through Six Sigma for multi-type customers
Degree: D.B.A.
Year: 2010
Subject: Hong Kong Polytechnic University -- Dissertations
Six sigma (Quality control standard)
Electronic industries -- China -- Hong Kong -- Quality control
Small business -- China -- Hong Kong -- Quality control
Department: Graduate School of Business
Pages: iii, 93 leaves : ill. ; 30 cm.
InnoPac Record: http://library.polyu.edu.hk/record=b2394269
URI: http://theses.lib.polyu.edu.hk/handle/200/5968
Abstract: Numerous researchers have studied the role of implementing Six Sigma in enhancing business processes (e.g., cost saving) in companies. Few studies, however, focus on the effect of implementing Six Sigma on the process-based competitive capabilities (i.e., service quality, price, and product quality) of small-and medium-sized enterprises (SMEs) that supply electronic components. Moreover, few marketing researchers have studied the effect of changes in service quality, price, and product quality on varying degrees of customer satisfaction and loyalty upon Six Sigma implementation in SMEs. This thesis aims to investigate the implementation of Six Sigma and its associations with different types of (process) capability-based competitiveness, which may help companies, respond to the varying needs of different types of SME customers in the electronic components industry. The objectives of this research are to: 1) develop a model for understanding the relationship between Six Sigma and process capability-based competiveness; and 2) investigate what types of (process) capability-based competitiveness can help SME-suppliers meet the requirements of their customers across different groups [e.g., original equipment manufacturers (OEMs), original design manufacturers (ODMs), and original brand manufacturers (OBMs)]. Qualitative and quantitative methods are used to achieve these research objectives. A case study on the sample company is conducted to examine the effect of Six Sigma implementation. A survey with structured questionnaires is used to collect data to examine the contributions of service quality, price, and product quality that enable firms to enhance customer satisfaction and loyalty. Implementing Six Sigma successfully reduces customer complaints regarding product and service quality; it also reduces costs and improves competitive ability in terms of product price. Regression analysis reveals that customer satisfaction and loyalty are positively associated with service and product quality, and negatively related to price. In addition, price is the most significant factor in improving customer satisfaction and loyalty in OEMs. Second, service quality is the most significant factor in improving customer satisfaction, and price is the most significant in improving customer loyalty in ODMs. Moreover, product quality is most significant in improving both OBM customer satisfaction and loyalty. Implications for academics and practitioners are discussed.

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