Lean six sigma as a capability for data governance: an exploratory grounded theory study

Abstract

Data breaches continue to rise, placing unprecedented pressure on organizations to strengthen data governance (DG) practices. Lean six sigma (LSS), with its emphasis on structured processes and continuous improvement, offers a potential pathway for enhancing governance maturity. This study aims to explore how LSS principles can support and strengthen DG frameworks in small and medium-sized enterprises (SMEs) and SME-like environments, with the goal of informing more effective governance policies, improving decision-making and enabling resilient, data-driven operations. A qualitative grounded theory methodology was employed to examine the under-theorized intersection of LSS and DG in SMEs and SME-like environments. Grounded theory was selected due to the limited empirical understanding of how process improvement methodologies can support governance and privacy in resource-constrained environments. This approach enabled the development of a data-driven conceptual framework derived from systematic grounded theory coding procedures, including iterative coding and constant comparative analysis, of semi-structured interviews. The study identifies how SMEs and SME-like environments integrate LSS principles through a lens of critical success factors (CSFs), into DG through a triadic framework comprising: (1) structural role clarity, (2) process control through LSS tools and (3) organizational readiness. Four themes emerged: the strategic importance of DG for resilience and compliance; the distribution and formalization of governance roles; the use of LSS tools to improve data quality, role clarity and operational efficiency; and challenges related to resource limitations, resistance to change and capability gaps. Together, these findings reveal a structured pathway for SMEs to embed governance practices while addressing operational and cultural constraints. To the best of the authors’ knowledge, this research provides one of the first grounded theory examinations of how LSS can enhance DG in SMEs and SME-like environments. The emergent framework advances theoretical understanding by demonstrating how governance maturity develops at the intersection of role clarity, process control and organizational readiness. The study contributes a unique perspective by positioning LSS not only as a quality methodology but as a governance enabler, offering resource-constrained organizations a structured approach to institutionalizing resilient, data-driven governance practices.