Systematic literature review on Hoshin Kanri methodology and application in the service sector

Abstract

Purpose: Hoshin Kanri (HK) is a strategic framework that aligns all levels and individuals in an organisation to the same strategic objectives. This approach has proven significant benefits in manufacturing, while its application in service industries remains relatively underexplored. This paper aims to provide a general overview of HK and explore its potential contributions when implemented in service-related environments. Methodology: A systematic literature review was conducted using predefined criteria and keywords to search the Scopus database. The qualitative analysis of selected papers was structured according to research questions, enabling a comprehensive synthesis of relevant insights. Findings: The limited number of relevant papers on HK implementation in service industries suggests that this area is still in an early stage of academic exploration. The results indicate that companies report distinct advantages from utilising HK in their services, including a better understanding of customer needs, a clearer connection between business strategy and KPIs, and improved process performance, among others. The results also show that there are certain obstacles to HK implementation, such as difficulties in focusing on a narrower set of objectives, a lack of experience in applying similar concepts (such as TQM), and resistance to change. These obstacles, along with contextual factors specific to service industries, often require adjustments when implementing HK. Research limitations and implications: Deficient articles address this topic, and it has only been covered in a few areas of the service sector, which limits the depth of the insights and makes generalisation of the results difficult. This indicates a need for further empirical studies to build a foundational understanding of the HK phenomenon and validate and adapt HK principles to service contexts. Future research should also expand to other services and provide more concrete results of implementing the HK. Originality and Value: To the best of the authors' knowledge, this paper presents the first effort to provide a systematic literature review of HK specifically for the service environment.