Industry 4.0, digital lean, and organizational performance in apparel firms

Purpose This study aims to investigate the impact of Industry 4.0 (I4.0) and digital lean (L4.0) on organizational performance (OP) in Vietnam’s apparel firms, with a focus on examining the role of mediator (L4.0) and moderator, including human capital 4.0 (HC4.0) and research and development 4.0 (R&D4.0), in influencing OP. Design/methodology/approach A conceptual framework was developed, grounded in the extant literature. Closed-ended questionnaires were used to collect data from managers of 267 apparel firms across Vietnam. The hypotheses, mediators and moderators were tested using SPSS PROCESS Macro V4.20. Findings The findings indicate that I4.0 has a positive but insignificant direct effect on OP. However, its indirect effect on OP through L4.0 is both positive and significant. In addition, HC4.0 and R&D4.0 do not moderate the relationships between I4.0 and OP, or between I4.0, L4.0 and OP. Overall, the results emphasize the mediating role of L4.0 and the limited moderating influence of HC4.0 and R&D4.0 in the apparel industry of an emerging economy. I4.0 alone cannot drive superior performance; its successful implementation requires integration with L4.0 and complementary organizational capabilities to fully realize its potential. Practical implications Industry 4.0 technologies alone will not impact a firm; apparel companies need a clear strategy for their implementation. Developing digital and soft skills is essential for maintaining operational stability. Originality/value To the best of the authors’ knowledge, this is the first empirical study to investigate the mediating and moderating effects of I4.0, L4.0, HC4.0 and R&D on OP in the textile and apparel industry.