Impact of lean six sigma practices on organizational performance in the public automotive manufacturing factories in Ethiopia, Africa: mediating effect of operational performance

Purpose This research paper aims to examine the impact of lean six sigma (LSS) practices on organizational performance, emphasizing the mediating role of operational performance in Ethiopia’s public automotive manufacturing sector. Design/methodology/approach A quantitative research design was used by using a structured five-point Likert scale questionnaire distributed to employees in four public automotive manufacturing factories. Data analysis included calculating means, standard deviations, correlations and regression techniques, along with mediation analysis to investigate the relationships among LSS practices as independent variables, operational performance as a mediating variable and organizational performance as a dependent variable. Four hypotheses were developed and tested using SPSS for statistical analysis. Findings The research found a significant positive relationship between LSS practices and organizational performance, with operational performance acting as a crucial mediator. Structured improvement procedures and statistical process control had the strongest effects on both operational performance and organizational performance, while total productive maintenance showed an insignificant impact on operational performance. Inventory levels also did not significantly affect organizational performance. The results indicate that LSS practices are interdependent and should be implemented holistically, as they support one another. Operational performance partially mediates the influence of LSS practices on organizational performance. Research limitations/implications The study is limited to Ethiopia’s public automotive sector, which may affect the generalizability of the findings. This research enhances the theoretical understanding of LSS practices by elucidating the mediating role of operational performance in influencing organizational outcomes. Practical implications Automotive managers should prioritize LSS practices to improve operational metrics and enhance organizational performance. Originality/value This study provides empirical evidence on the relationship between LSS practices and organizational performance in Ethiopian manufacturing, underscoring operational performance vital mediating role.