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The Effects of Six Sigma Quality (SSQ) on Innovation and Organisational Ambidexterity in a High Operating Cost Environment

The Effects of Six Sigma Quality (SSQ) on Innovation and Organisational Ambidexterity in a High Operating Cost Environment
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Author(s): Milé Terziovski (Curtin Graduate School of Business, Australia)
Copyright: 2014
Pages: 16
Source title: Global Perspectives on Achieving Success in High and Low Cost Operating Environments
Source Author(s)/Editor(s): Göran Roos (Swinburne University, Australia) and Narelle Kennedy (The Kennedy Company Pty Ltd., Australia)
DOI: 10.4018/978-1-4666-5828-8.ch010

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Abstract

This chapter explores the effect of Six Sigma Quality (SSQ) on innovation and organizational ambidexterity in a high operating cost environment. Multiple-cross case analysis revealed that SSQ seems to align very well with process innovation, where the organisation has a well-defined process output to control. However, some tension exists between SSQ and product innovation, particularly in terms of the time expectation for SSQ to deliver results. Furthermore, the study shows that SSQ could have a positive impact on organizational ambidexterity in a high operating cost environment, as long as management recognizes that innovation approaches require their own formula for success. Management needs to establish a team that could manage the tension between “getting it right the first time” as part of managed innovation and “learning from failure” as part of entrepreneurial innovation.

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