Does lean and sustainable manufacturing lead to Industry 4.0 adoption: The mediating role of ambidextrous innovation capabilities

Abstract

On one hand, Industry 4.0-based sustainable manufacturing has been undergoing a revolution, and generating widespread interest both among business leaders and academicians, based on the assumption that it has a linear and direct relationship. On the other, sustainable ambidextrous innovation has become crucial in reducing carbon emissions, saving costs, and creating new market segments simultaneously. However, the research on the role of lean and sustainable manufacturing on Industry 4.0 adoption is developing, and literature has assumed a linear and direct relationship. Using Structural Equation Modeling, we investigate the mediating role of ambidextrous innovation capabilities on Industry 4.0 adoption in order to achieve sustainability goals across multiple businesses and stakeholders. In the process, we add to research on sustainable manufacturing and Industry 4.0, while making three salient contributions: (1) Scale development to measure constructs, such as lean manufacturing, sustainable manufacturing, innovation ambidexterity and Industry 4.0 adoption. (2) Establishing a relationship between lean & sustainable manufacturing and Industry 4.0. (3) Investigating the mediating role of innovation ambidexterity.