Relationship between lean six sigma, environmental management systems, and organizational performance in the malaysian automotive industry

Abstract

In the globalization era, lean initiatives and environmental management systems are increasingly implemented in the automotive industry. The aim of this report is to investigate and perform structural analysis of Lean Six Sigma (LSS) and Organizational Performance (OP). Data were obtained from 252 top management leaders in the Malaysian automotive industry. This report presents the results of the Exploratory Factor Analyses (EFA), Confirmatory Factor Analysis (CFA), and reliability analysis, which are empirically verified and validated. A set of assessment measurements of LSS and OP is expected to be suitable for their characteristics and improve their competitiveness. Thus, the main objective of the analysis was to provide additional insight into the relationship between LSS and OP by examining the effects of ISO 14001 certification as a moderator. The results indicate that ISO 14001 certification does not significantly moderate the relationship between LSS and OP in the Malaysian automotive industry. However, the OP values for ISO 14001 certified companies are higher than those without ISO 14001 certification.