Lean Management and Industry 4.0: a dynamic capabilities framework for an integrated transformation

This study addresses the ongoing challenge of concurrently integrating Lean and Industry 4.0, a critical need for companies striving to enhance operational capabilities in increasingly digital environments. While past research focused on sequential approaches or high-level conceptualizations, this research delves into the level of ‘how’, applying Dynamic Capabilities theory through a deductive, four-stage mixed-method design, focused on large German manufacturing firms. First, expert interviews underwent thematic analysis to identify strategies and courses of action for integration. Next, an exploratory survey refined these results statistically. Third, the findings were validated and triangulated via a Delphi study, from which a structured integration framework emerged. Finally, confirmatory composite analysis of 236 managerial responses confirmed the reliability and validity of the framework. The study presents 44 validated actions grouped into six dimensions: Initiating, Sensing, Seizing, Transforming, Resources and Capabilities. Notably, it introduces the new ‘Initiating’ dimension, expanding the Dynamic Capabilities theory. While the study’s focus on large German manufacturers is a limitation, the resulting framework offers practical pathways for companies unable to pursue sequential integration due to time pressures. Ultimately, this research provides both theoretical advancement and practical tools for successfully managing the simultaneous transformation towards Lean and Industry 4.0.