Implications of using Industry 4.0 base technologies for lean and agile supply chains and performance

Abstract

The adoption of Industry 4.0 (I4.0) technologies in recent years has generated conditions for substantial changes in supply chain management. However, research is still ongoing on how I4.0 technologies can be integrated into current supply chain models to improve supply chain capabilities and performance. This work aims to contribute to understanding the relationships between Industry 4.0 technologies and lean and agile supply chain strategies, and identifying the implications for the focal firm's operational performance. In this study, we focus on a specific group of emerging I4.0 technologies known as I4.0 base technologies (i.e., cloud computing, Internet of Things, and Big Data analytics), whose complementary features can enhance the data collection, storage, and sharing, as well as the analysis processes. Drawing on the Dynamic Capabilities Theory, a structural equation model is used to analyze data collected from 256 Spanish focal manufacturing firms. Results indicate that I4.0 base technologies do not have the same effects on lean and agile supply chain strategies. While I4.0 base technologies can make supply chains leaner, they have been found to have no significant direct effect on agile supply chain implementation. Further, findings indicate a direct relationship between the lean and agile approaches and that the latter generates mediation effects between lean and operational performance.