Lean Operations, Industry 4.0 Adoption, Integration Capability, and Operational Agility: Evidence from Emerging Markets.
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Abstract
Industry 4.0 can improve visibility, automation, and coordination within Industry 4.0. Manufacturers, particularly in developing economies, implement Industry 4.0 within poorly defined structures, mainly due to resource constraints. This paper uses an author-assembled, cross-sectional, analytical dataset composed of 420 firm-level records from Brazil, India, Indonesia, Mexico, South Africa, Türkiye, and Vietnam to explore the relationships between lean maturity, Industry 4.0 adoption, integrative capability, operational agility, and performance. Using robust-regression, operational agility was positively related to lean maturity, Industry 4.0 adoption, and integrative capability. From the full-sample, lean maturity and Industry 4.0 interaction were positively related, but not significantly (β= .066, 95% CI [-.007, .138], p= .075), thus rejecting H4 and revealing no empirically substantiated Lean–Industry 4.0 synergy from this analytical dataset. For the small firms, the interaction, positively related and was significantly close to p= .050, thus this is exploratory and requires independent verification. Operational agility was positively related to performance. Cross-sectional indirect effect estimates was aligned with a partial statistical mediation for the three capabilities, thus describing the resource-based view, dynamic capabilities, and socio-technical systems, where the presence of routines, digital processing, and integrative systems within the firm, viewed as complementary resources, resulted in no significant interaction effect. These findings are based on the author’s analytical dataset, and provide the evidence of the relationships investigated for this cross-sectional survey.
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