The impact of lean production on sustainable organizational performance: the moderating effect of industry 4.0 technologies adoption

Abstract

Purpose A paradigm shift of industry revolution 4.0 is made possible by technological advances that constitute a reversal of conventional lean production (LP) processes. In addition, there is increasing pressure on the manufacturing industry to manage operations responsibly towards the environmental and social impact, on top of the economic. These have motivated the manufacturing industry to identify approaches to implementing LP to achieve sustainable organizational performance. Hence, this study aims to examine the moderating role of industry 4.0 technologies adoption in the relationship between LP and sustainable organizational performance. Design/methodology/approach This study proposed a research framework on the relationship between LP and sustainable organizational performance supported by LP theory and triple bottom line theory, with industry 4.0 technologies adoption as a moderator. A quantitative survey method was used in this study for data collection. The respondents in this study were middle or top management in manufacturing companies, including directors, managers, supervisors and coordinators. To investigate the demographic variables of respondents, descriptive statistics were generated by using IBM Statistical Packages for the Social Sciences. For measurement and structural model evaluations, partial least square structural equation modelling was used. Findings Based on the proposed research framework in this study, supplier feedback, just-in-time delivery, supplier development, customer involvement, pull system, continuous flow, set-up time reduction (STR), statistical process control, total productive maintenance (TPM) and employee involvement are the dimensions for LP. This study revealed that industry 4.0 technologies adoption positively moderated the relationships of five LP dimensions towards a sustainable organizational performance, namely, supplier feedback, supplier development, continuous flow, STR and TPM. Originality/value This study provided insights that would enable practitioners to better strategize the co-existence of LP and industry 4.0 technologies adoption in mutually supporting sustainable organizational performance (environmental, social and economic).