Industry 4.0: key driver of the Lean–Sustainability relationship

Purpose This study aims to determine how integrating Industry 4.0 technologies and Lean Manufacturing practices impacts the sustainability indicators of Ecuadorian manufacturing industries seeking to be competitive in the global market by adopting new hybrid strategies. Design/methodology/approach An online questionnaire was administered to executives from 131 Ecuadorian companies; the vast majority belong to the manufacturing sector. The theoretical model, which evaluated four hypotheses, was analyzed using partial least squares structural equation modeling with SmartPLS 4.1.1.4, considering 12 lean techniques, 7 Industry 4.0 technologies and 3 sustainability pillars. Findings The findings confirm that Lean Manufacturing and Industry 4.0 positively impact sustainability, albeit with moderate effects. However, the influence of Industry 4.0 shows a stronger association with sustainability and is consistent with a mediating role in the relationship between Lean Manufacturing and Sustainability. The Importance–Performance Map Analysis showed that most lean techniques have high levels of implementation but marginal returns in sustainability, while digital technologies, particularly big data, have low levels of use but high potential impact, making them strategic priorities for companies. Research limitations/implications This study is limited to Ecuadorian companies willing to participate, so although the results are considered a representative sample, this may limit the results’ generalizability. The same applies to Lean Manufacturing implementation, which is limited to 12 practices and 7 Industry 4.0 technologies, so future studies could include additional techniques. Originality/value To the best of the authors’ knowledge, this is the first study on the impact of Lean Manufacturing tools, both “human” and “technical,” on the performance of Ecuadorian companies, considering the three pillars of sustainability. This is also the case with Industry 4.0 technologies. Furthermore, it contributes to other studies conducted in different countries that support the benefits and competitive advantages of implementing lean practices in organizations. This study helps identify techniques that could significantly impact sustainable improvement, allowing companies to make decisions about areas for improvement in their processes.