The Role of Complexity and Knowledge in Process Improvement Projects

Organizations implement process improvement approaches like TQM, Six Sigma, and Lean to cerate organizational knowledge and improve performance. Noted quality authority Joseph M Juran said that quality improvement takes place one project at a time and in no other way. Although a number of studies have investigated organizational-level factors that influence the success of quality management, few studies have investigated project-level factors. Quality improvement projects often utilize tools and methods to understand and diagnose problems. This study finds out that the perceived utility of the tools and method enhances knowledge creation for complex problems, but is less effective for simple problems. Complex problems lead to knowledge creation, which in turn leads to project success. However, complex problems also have a direct effect on project performance but in an opposing direction. Our findings suggest the use of tools and method should fit the complexity of the problem. Organizations can potentially benefit from multiple approaches to improvement projects (e.g. Kaizen and Six Sigma) that utilize the tools and method for varying levels of project complexity.