Does the integration of lean production and Industry 4.0 in green supply chains generate a better operational performance?

Abstract

PurposeThe tightening of environmental measures and policies in various countries around the world is forcing manufacturing companies, particularly those that make up the automotive industry, to improve their production processes, through the implementation of approaches such as lean production (LP) and Industry 4.0 (I4.0) technologies, to reduce industrial waste. However, the literature indicates that the implementation of LP and I4.0 does not always lead to an improvement in the level of operational performance (OP). Therefore, this study analyzes the effects of the implementation of LP practices and I4.0 on a green supply chain (GSC) and the operational performance of manufacturing companies in the Mexican automotive industry.Design/methodology/approachA theoretical research framework consisting of six hypotheses was developed and validated by applying partial least squares structural equation modeling (PLS-SEM) and using a sample of 460 companies from the Mexican automotive industry.FindingsThe results show that the level of OP of manufacturing companies increases substantially with the implementation of LP and I4.0 practices, as well as a GSC.Practical implicationsManagers of manufacturing companies will be able to use the results of this study to improve their production systems and to demonstrate the effects of these practices on OP.Originality/valueThis study contributes to the literature on LP and I4.0 by providing robust empirical evidence of the positive effects of implementing these approaches on the GSC and OP of manufacturing companies.