The joint effects of digital transformation technologies and human lean practices on firm performance: an empirical investigation

Abstract

Purpose This study examines how human lean practices (HLP), Industry 4.0 (I4.0) technologies, technical lean practices (TLP), operational performance (OP) and sustainable performance (SP) interact within the manufacturing sector of emerging economies under the constraints of a lean environment. Design/methodology/approach We collected multi-stage data from 214 respondents in manufacturing firms using a structured questionnaire. A hybrid approach of structural equation modelling and ordinary least squares hierarchical linear regression was employed to analyse the data and assess the robustness of the proposed hypotheses. Findings The findings confirm that I4.0 technologies have a significantly positive impact on TLP, HLP and OP. Moreover, HLP and TLP have similar effects on TLP and OP, respectively. Additionally, TLP, HLP and OP significantly positively influence SP. All of the proposed moderations (except I4.0 × HLP impact on SP) and mediated paths are significant. Lastly, certain control variables such as firm size, firm type and duration of lean implementation significantly affect OP and SP. Practical implications This research holds significant practical implications by enhancing the comprehension of lean processes, thereby aiding managers in crafting a strategic roadmap for the implementation of HLP to embrace lean methodologies and enhance both OP and SP efficiently. In light of the impending 5th industrial revolution, our findings underscore the indispensability of HLP in harnessing the benefits of forthcoming technological advancements, particularly within the realm of I4.0, and leveraging them to elevate both OP and SP to new heights. Originality/value Departing from conventional research approaches, the study underscores the substantial impact of contingencies on endogenous variables, lending robust support to the contingency theory. Anchored in the principles of the resource orchestration theory, the findings elucidate that the isolated deployment of technology may not yield significant results. Instead, the integration of I4.0 with lean practices is important, serving as an orchestrated mechanism to propel organisational goals to fruition.