Investigating and leveraging lean manufacturing methodology for Industry 4.0 adoption in Indian manufacturing firms

Purpose The adoption of new technologies is crucial for operational excellence. Similar to lean manufacturing (LM), Industry 4.0 (I4.0) drives operational excellence. This study aims to identify the technology categories of I4.0 and investigate how LM impacts the adoption of I4.0, especially within the context of the manufacturing sector of developing countries. Design/methodology/approach Lean practices are standard phenomena, but I4.0 adoption is a highly contextual process. A survey of manufacturing companies in India was conducted, and an empirical analysis was performed to test the theoretical framework using structural equation modelling to assess the adoption of I4.0. Findings The study shows that lean manufacturing tools positively influence the adoption of I4.0 technology and their adoption in the manufacturing industry. The adoption of I4.0 and associated technology will complement existing lean systems because of the high cost and capital investment in I4.0 adoption and the handy applicability of lean tools. Research limitations/implications This study can help in identifying contextual I4.0 technology contexts through lean methods that ensures success for companies operating in developing countries and help rational resource allocation depending on I4.0 adoption. The study empirically establishes that the LM methodology helps adopt I4.0, which is synergistic with business goals and enhances overall performance. The study results can be used to initiate change management steps for skilling and educating manufacturing sector executives so that hindrances to the adoption of I4.0 are addressed by ensuring LM relevance in manufacturing setups. Originality/value This study’s theoretical contribution is the categorisation of I4.0 technology constructs to help I4.0 adoption in manufacturing. The empirical validation of the influence of LM methods on I4.0 adoption is another practical value of this study.