Feasibility of Implementing Lean Six Sigma Leadership to Enhance Public Sector Budgeting Efficiency: A Structural Equation Modeling Approach

Document Type : Original Article

Authors

1 1. Department of Accounting, Faculty of Management and Accounting, Hazrat-e Masoumeh University, Qom, Iran.

2 Department of Accounting, Payame Noor University, Sanandaj, Iran.

Abstract

This study explores the potential of Lean Six Sigma leadership as a tool to improve the efficiency of Iran’s public sector budgeting system. Iran’s budgeting process faces significant challenges, such as bureaucratic complexity, lack of transparency, and inefficient resource allocation, underscoring the need for innovative leadership approaches. This research analyzes budget experts’ perceptions of the compatibility, applicability, barriers, and outcomes of adopting Lean Six Sigma leadership. This approach, which emphasizes process standardization, continuous improvement, and data-driven decision-making, can enhance transparency and operational effectiveness. Data were gathered in 2025 from 249 budget experts using a Likert-scale questionnaire. The study employed a descriptive-correlational design, with data analyzed using SPSS 28 and AMOS 26 through structural equation modeling. Findings show that the four main constructs—compatibility, applicability, barriers, and outcomes—account for 65.4% of the variance in the feasibility of Lean Six Sigma leadership. Second-order confirmatory factor analysis revealed that the "compatibility" construct, with a factor loading of 0.823, exhibits the strongest correlation with the feasibility of implementing Lean Six Sigma leadership, while the "outcomes" construct, with a factor loading of 0.319, shows the weakest correlation. This leadership style is indirectly associated with increased transparency, improved budget forecasting accuracy, and enhanced employee participation through process standardization, continuous improvement, and data-driven analysis. Identified key barriers, including organizational bureaucracy, resistance to change, and lack of expertise, are correlated with the need for robust managerial support, ongoing training, and the development of technological infrastructure. The "outcomes" construct is associated with potential benefits such as reduced financial corruption, increased public trust, and improved accountability in the public sector. This study provides a theoretical-practical framework for reforming public sector budgeting, which can serve as a guide for policymakers and public sector managers.

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Main Subjects

References

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Public Sector Economics Studies
Volume 4, Issue 4 - Serial Number 14
January 2026
Pages 625-654

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History

  • Receive Date: 24 September 2025
  • Revise Date: 29 October 2025
  • Accept Date: 01 November 2025

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