Operational practices for integrating lean and industry 4.0 – a dynamic capabilities perspective

Abstract

This article presents the findings of an exploratory survey conducted among 256 experts engaged in German manufacturing firms to explore practices related to integrating Lean with Industry 4.0. Using the Dynamic Capabilities framework as a theoretical lens, the study validates 43 practices organised into six dimensions: ‘initiating’, ‘sensing’, ‘seizing’, ‘transforming’, ‘resources’, and ‘capabilities’. Theoretically, the research contributes by concretising the classical dimensions of Dynamic Capabilities and proposing the novel dimension of ‘initiating’, enhancing the theory's holism and applicability in the context of LM and I4.0 integrations. Managerially, the study provides a practical framework for self-assessment and strategic planning, emphasising the critical importance of early-stage practices related to ‘change’, ‘resources’, ‘capabilities’, and ‘initiating’. These elements are crucial for triggering subsequent integration phases and ensuring successful execution. The framework addresses technology adoption, organisational culture, process optimisation, and workforce engagement, offering comprehensive guidance for integrating LM and I4.0. The contributions of this research hold value for the field of Operations Management as it provides empirical evidence on essential practices for effectively integrating Lean with Industry 4.0. Additionally, the study highlights the significance of Dynamic Capabilities as a means to comprehend and manage the complex interplay between these two approaches.