The financial implications of XPS: an organizational learning perspective
International Journal of Lean Six Sigma
ISSN: 2040-4166
Article publication date: 13 February 2023
Issue publication date: 3 November 2023
Abstract
Purpose
This study aims to investigate the impact of a company-specific lean program (a so-called company-specific production system [XPS]) on the company’s financial performance. This study analyzes data from the implementation of XPS in multiple plants of a multinational corporation and examines the results through an organizational learning lens.
Design/methodology/approach
This study adopts a longitudinal single-case design to investigate a Norwegian multinational company in the process industry, producing silicon for the global market. The company has developed, implemented and institutionalized its own XPS since 1991. The program has directly contributed to extensive cost reduction and significantly strengthened the organization’s competitive position.
Findings
The findings of this study show a link between organizational learning and the improvement of financial results in the organization. This study presents a sand cone model that illustrates how the development and deployment of an XPS through individual- and orchestrated learning subsequently created a common platform for institutionalized learning within and across the multinational organization. This organizational learning capability managed to tie the company’s continuous improvement efforts directly to the improvement of cost levels throughout the value chain.
Practical implications
The practical implications of this work are significant, as this study uncovers the importance for managers to consider both individual-, orchestrated- and institutionalized learning (within and across a multinational network) when designing and implementing XPS to drive the improvement of an organization’s financial performance.
Originality/value
Documenting the financial impact of such programs is a common challenge. Therefore, the insights presented in this research are of value to both researchers and practitioners, in particular, managers and executives in large multinational organizations.
Keywords
Acknowledgements
The authors would like to give a special thanks to contributors in the NCC team for providing data and important knowledge to this paper.
Funding: The authors would like to acknowledge financial support from the Research Council of Norway for the research project Lean Digital.
Citation
Hekneby, T. and Powell, D.J. (2023), "The financial implications of XPS: an organizational learning perspective", International Journal of Lean Six Sigma, Vol. 14 No. 6, pp. 1248-1263. https://doi.org/10.1108/IJLSS-05-2022-0099
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited