Abstract:

The paper develops a theoretical base for the effect of Six Sigma program on Romanian SMEs. It has been proposed that Six Sigma implementations enhance technological innovation of the SMEs; however, they are beneficial for companies in stable environments. Since Six Sigma programs are focused on variance reduction and efficiency, these initiatives are not very effective in dynamic environments, where the rate of technological change is dramatic. With their emphasis on variance-reduction and efficiency Six Sigma programs can be effective in enhancing incremental innovation. In addition, due to the focus of Six Sigma implementations on existing customers, they may impede innovation for new customers. Accordingly, implementing Six Sigma programs in fast pace environments with high level of innovation and change may be a challenge, and may not result in the expected outcome. Building upon theories form process management and quality management the paper proposes several propositions to address the effect of Six Sigma programs in Romanian SMEs.