Does digitalization enhance the effects of lean production on social performance?

Abstract

PurposeThis study aims to investigate whether Industry 4.0 digital technologies can enhance the effects of lean production on social performance.Design/methodology/approachSurvey data collected from China’s manufacturing industry are used to test research hypotheses.FindingsThe results reveal that the three dimensions of lean production (internal, customer and supplier) have a significant positive effect on social performance and that digital technology advancement (DTA) positively moderates these relationships. DTA adds only a marginal contribution to social performance.Practical implicationsThis study addresses a new challenging question from manufacturing firms: how to integrate lean, technology and people? The empirical findings provide timely and insightful practical guidance for managers to better understand the role of digital transformation in the traditional lean context.Originality/valueWhile digitalization is known to complement lean production, this study shows digitalization also complements the effects of lean production on social performance.