Barriers to Six Sigma Implementation for Enhancing Process Efficiency and Customer Satisfaction in the Insurance Industry of Sri Lanka

Abstract

The service industry is struggling with significant challenges related to process inefficiencies and declining customer satisfaction. For that, the application of Six Sigma is one of the best solutions, but most of its applications have been discussed concerning the manufacturing industry. Therefore, especially in Sri Lanka its potential in the service industry is still untapped. The limited application of this robust methodology raises the question of underlying barriers. Therefore, this research aims to develop a framework for identifying the most significant barriers affecting the Six Sigma implementation in the insurance industry of Sri Lanka. Thereafter, the impact of Six Sigma implementation in internal operations and service delivery to improve process efficiency and customer service performance is analyzed. The insurance industry acts as the sample of this research due to its steady growth and vital contribution to the Sri Lankan economy over the past years. Based on 137 samples, a quantitative approach utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM), the research identified operational and resource-related barriers as the most significant barriers to Six Sigma implementation. It also revealed that applying Six Sigma to internal operations and service delivery positively enhances process efficiency and customer service performance. The recommendations emphasize cultivating a culture of continuous improvement, integrating advanced IT systems, strengthening data analytics capabilities and so on to remove operational and resource-related barriers. Finally, this research provides valuable insights for industry professionals, scholars, and policymakers aiming to improve process efficiency and customer service performance in the insurance industry.