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

Purpose

This study aims to investigate whether Industry 4.0 digital technologies can enhance the effects of lean production on social performance.

Design/methodology/approach

Survey data collected from China’s manufacturing industry are used to test research hypotheses.

Findings

The 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 implications

This 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/value

While digitalization is known to complement lean production, this study shows digitalization also complements the effects of lean production on social performance.