When digital technologies meet lean production: A socio-technical system perspective for operational efficiency and innovativeness

Abstract

In this work, we sought to theoretically hypothesize and empirically investigate the effect of digital technologies on firms’ operational performance and the moderating effect of lean production (LP) on this relationship, from the perspective of the socio-technical systems theory. The hypothesized relationships are examined based on an event study of 303 lean manufacturing companies adopting digital technologies in China between 2010 and 2021. Results demonstrate that the effect of digital technologies on enhanced operational efficiency is more pronounced for firms implementing people-oriented LP practices, while LP’s effect on diminished innovativeness is more obvious for firms undertaking process-oriented LP practices