Process innovation through industry 4.0 technologies, lean practices and green supply chains

This paper investigates the impact of a process innovation strategy that firms implement through Industry 4.0 (I4.0) technologies on lean practices and green supply chains. It analyses whether process innovation can be used as a lever to strengthen the relationships among Leanness, Green Supply Chain Management and Performance. The results reveal that Leanness facilitates the supplier collaboration on environmental programs and positively contributes to environmental and operational performance. In contrast, it exerts a positive second order effect on economic performance, which should then be pursued as a long term target. A process innovation strategy based on I4.0 technologies improves the effect of Leanness on operational performance, which also leads to higher economic outcomes. Nevertheless, firms can gain higher performance either by collaborating with suppliers on environmental programs or by investing in I4.0 technologies but not with both.

Automated summary

The study shows that Lean practices facilitate supplier collaboration on environmental programs and positively impact environmental and operational performance. A process innovation strategy based on I4.0 technologies enhances the effect of Lean practices on operational performance, leading to higher economic outcomes. However, firms can achieve higher performance by either collaborating with suppliers on environmental programs or investing in I4.0 technologies, but not both simultaneously.