Essential Skills for Lean Six Sigma 4.0 Implementation: Insights from a TOE-based Mixed-Method Analysis

This study aims to identify the essential skills required for successful Lean Six Sigma (LSS) implementation within an Industry 4.0 (I4.0) environment. Additionally, the study adopts a Technology-Organization-Environment (TOE) framework to examine the relationship between these identified skills and the overall effectiveness of Lean Six Sigma 4.0 (LSS 4.0) initiatives. Organizations can optimize their LSS 4.0 adoption strategies by understanding these essential skills. The study uses an exploratory sequential mixed-method design. In phase one, qualitative methods (literature review, survey, and interviews) were used to identify essential skills. In phase two, a quantitative approach (structural equation modelling with a sample of 263) is employed to examine the relationship between these identified skills and LSS 4.0 adoption. This study identified fifteen essential skills critical for successful LSS 4.0 adoption. Also, the study utilized combined Partial Least Squares - Structural Equation Modelling (PLSSEM) and Artificial Neural Network (ANN) to examine the relationship and impact of skillsets on LSS 4.0 adoption. The study's findings reveal that leadership skills and work-life balance significantly impact LSS 4.0 implementation. Utilizing the significant predictors identified by SEM, the developed ANN model effectively predicts the skillset required for LSS 4.0 adoption with an accuracy rate of 71.5%. The TOE perspective provides valuable insights for organizations to prioritize skill development before embarking on LSS 4.0 initiatives. To the best of the literature, this is one of the first studies to address the skill requirements for LSS 4.0 implementation.