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The complementary effect of lean manufacturing and digitalisation on operational performance

Author

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  • Sven-Vegard Buer
  • Marco Semini
  • Jan Ola Strandhagen
  • Fabio Sgarbossa

Abstract

The most recent trend manufacturers have embraced to seek operational performance improvements is the use of a wide range of digital technologies typically associated with Industry 4.0. However, few studies have investigated the relationship between such technologies and the long-established lean manufacturing domain, and how they, together, influence operational performance. Based on data from a cross-sectional survey of manufacturing companies, this study investigates the relationships between the use of lean manufacturing, factory digitalisation, and operational performance using hierarchical multiple regression analysis. While simultaneously controlling for the effects of production repetitiveness, company size, and length of lean manufacturing implementation, the findings show that both lean manufacturing and factory digitalisation individually contribute to improved operational performance. Furthermore, it is found that when used together, they have a complementary (or synergistic) effect that is greater than their individual effects combined. These research findings provide both theoretical and practical insights into how lean manufacturing and factory digitalisation affect the operational performance of manufacturing firms. In light of the upcoming fourth industrial revolution, these findings suggest that lean manufacturing is not obsolete but rather is more important than ever in order to reap the benefits from emerging technologies and translate them into improved operational performance.

Suggested Citation

  • Sven-Vegard Buer & Marco Semini & Jan Ola Strandhagen & Fabio Sgarbossa, 2021. "The complementary effect of lean manufacturing and digitalisation on operational performance," International Journal of Production Research, Taylor & Francis Journals, vol. 59(7), pages 1976-1992, April.
    • Handle: RePEc:taf:tprsxx:v:59:y:2021:i:7:p:1976-1992
    DOI: 10.1080/00207543.2020.1790684
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    Cited by:

    1. Cui, Xiaona & Mohd Said, Ridzwana & Abdul Rahim, Norhuda & Ni, Mengjiao, 2024. "Can green finance Lead to green investment? Evidence from heavily polluting industries," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    2. Ghafoori, Arman & Gupta, Manjul & Merhi, Mohammad I. & Gupta, Samrat & Shore, Adam P., 2024. "Toward the role of organizational culture in data-driven digital transformation," International Journal of Production Economics, Elsevier, vol. 271(C).
    3. Catherine Maware & David M. Parsley, 2022. "The Challenges of Lean Transformation and Implementation in the Manufacturing Sector," Sustainability, MDPI, vol. 14(10), pages 1-24, May.
    4. Hamann-Lohmer, Jacob & Bendig, Miriam & Lasch, Rainer, 2023. "Investigating the impact of digital transformation on relationship and collaboration dynamics in supply chains and manufacturing networks – A multi-case study," International Journal of Production Economics, Elsevier, vol. 262(C).
    5. Bożena Zwolińska & Jakub Wiercioch, 2023. "Modelling the Reliability of Logistics Flows in a Complex Production System," Energies, MDPI, vol. 16(24), pages 1-22, December.
    6. Broccardo, Laura & Tenucci, Andrea & Agarwal, Reeti & Alshibani, Safiya Mukhtar, 2024. "Steering digitalization and management control maturity in small and medium enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    7. Grace Georgine Oyombe, 2024. "How Firm Innovation Affect Competitive Advantage Concurrently with Leagile Strategy: An Empirical Analysis of Construction Companies," International Journal of Business and Management, Canadian Center of Science and Education, vol. 19(2), pages 140-140, March.
    8. Gillani, Fatima & Chatha, Kamran Ali & Jajja, Shakeel Sadiq & Cao, Dongmei & Ma, Xiao, 2024. "Unpacking Digital Transformation: Identifying key enablers, transition stages and digital archetypes," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    9. Diego Tlapa & Guilherme Tortorella & Flavio Fogliatto & Maneesh Kumar & Alejandro Mac Cawley & Roberto Vassolo & Luis Enberg & Yolanda Baez-Lopez, 2022. "Effects of Lean Interventions Supported by Digital Technologies on Healthcare Services: A Systematic Review," IJERPH, MDPI, vol. 19(15), pages 1-23, July.
    10. Bokhorst, Jos A.C. & Knol, Wilfred & Slomp, Jannes & Bortolotti, Thomas, 2022. "Assessing to what extent smart manufacturing builds on lean principles," International Journal of Production Economics, Elsevier, vol. 253(C).
    11. Antonio Sartal & Josep Llach & Fernando León-Mateos, 2022. "“Do technologies really affect that much? exploring the potential of several industry 4.0 technologies in today’s lean manufacturing shop floors”," Operational Research, Springer, vol. 22(5), pages 6075-6106, November.
    12. Akshay Ranade & Javier Gómez & Andrew de Juan & William D. Chicaiza & Michael Ahern & Juan M. Escaño & Andriy Hryshchenko & Olan Casey & Aidan Cloonan & Dominic O’Sullivan & Ken Bruton & Alan McGibney, 2024. "Implementing Industry 4.0: An In-Depth Case Study Integrating Digitalisation and Modelling for Decision Support System Applications," Energies, MDPI, vol. 17(8), pages 1-28, April.
    13. Stylianos Ioannidis & Christos Karelakis & Zacharias Papanikolaou & George Theodossiou, 2022. "Exploring Digitalisation Adaptation of Agro-food Firms: Evidence from Greece," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 15(1), pages 94-104, July.

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