Title: Ready for Six Sigma? - a survey of Indonesian SMEs

Authors: Kifayah Amar; Douglas Davis

Addresses: Department of Industrial Engineering, UIN Sunan Kalijaga, Jl. Marsda Adisucipto No. 1, Yogyakarta 55281, Indonesia ' Department of Industrial Engineering, UIN Sunan Kalijaga, Jl. Marsda Adisucipto No. 1, Yogyakarta 55281, Indonesia

Abstract: The purpose of this research was to further understanding of the readiness of Indonesian SMEs to adopt a business improvement approach like Six Sigma. Data were collected from 148 SMEs competing in the metal goods industry using a questionnaire survey and interviews conducted with SME owners/managers and stakeholders. Findings showed that SME owners/managers were supportive of adopting new approaches like Six Sigma. However, a low level of technology use by SMEs made the direct adoption of a sophisticated business improvement method like Six Sigma problematic. Key customers, other SMEs, resource availability and employees commitment were found to be most influential on SMEs having a positive belief about the success of adopting a new business improvement method like Six Sigma. This research assists understanding factors that contribute to Indonesian SMEs adopting new technology, especially approaches to business improvement. Results support the use and further development of demonstrations sites to foster the adoption of new technologies by SMEs.

Keywords: Indonesia; innovation adoption; six sigma; SMEs; small and medium-sized enterprises; adoption readiness; metal goods industry; key customers; other SMEs; resource availability; employee commitment; business improvement; new technologies; technology adoption.

DOI: 10.1504/IJPQM.2015.071522

International Journal of Productivity and Quality Management, 2015 Vol.16 No.3, pp.281 - 297

Available online: 24 Aug 2015 *

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