4.6 Article

The moderating effect of Industry 4.0 on the relationship between lean supply chain management and performance improvement

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EMERALD GROUP PUBLISHING LTD
DOI: 10.1108/SCM-01-2018-0041

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Performance; Lean production; Industry 4.0; Emerging economies; Lean supply chain management

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Purpose This paper aims at investigating the moderating effect of the adoption of Industry 4.0 technologies on the relationship between lean supply chain management (LSCM) practices and supply chain performance improvement in the Brazilian industry. Design/methodology/approach The authors carried out a survey over 147 Brazilian manufacturing companies to capture the improvement of four supply chain performance indicators, along with the implementation level of 17 LSCM practices and 10 digital technologies related to Industry 4.0. The data were analyzed using confirmatory and exploratory factor analysis, and ordinary least squares regression analysis. Findings The authors' findings indicate that the adoption of Industry 4.0 technologies does moderate the relationship between LSCM practices and supply chain performance in Brazilian industry. However, this moderating effect does not occur at the same extent as expected. Originality/value Determining the effect of the concurrent adoption of Industry 4.0 technologies with already established practices, such as LSCM ones, in manufacturing companies located in emerging countries (e.g. Brazil) provides a deeper comprehension of the benefits and challenges that the fourth industrial revolution faces to entail greater supply chain performance achievements.

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