Optimal Mediation Strategy for Industry 4.0 Integration in Improving Operational Performance

Rinny Ermiyanti Yasin, Heru Sulistyo

Abstract


Digital transformation through Industry 4.0 (I4.0) offers significant potential to enhance efficiency and flexibility in manufacturing processes. However, its implementation often fails due to organizational unpreparedness and the lack of integration with Lean and Agile principles. This study aims to analyze the impact of I4.0 on operational performance (OP) and to examine the mediating role of Leagility Competencies (LC). The research involved 130 manufacturing companies in Indonesia that have adopted I4.0 technologies for at least three years and possess internal digital systems. The technologies implemented include Internet of Things (IoT), big data analytics, cloud manufacturing, and AI-driven control. Despite the widespread adoption of advanced technologies, many companies have not provided adequate training to develop LC among their employees. The study employs Structural Equation Modeling using the Partial Least Squares (SEM-PLS) approach. The results indicate that the direct effect of I4.0 on OP is not statistically significant (β = 0.118; p = 0.159), whereas the indirect effect through LC is significant (β = 0.290; t > 1.96). These findings highlight the critical role of LC in bridging I4.0 adoption with operational performance improvement. The study underscores the importance of organizational readiness, particularly in cultivating internal competencies based on Lean and Agile principles, to fully realize the benefits of I4.0 implementation.

Full Text:

PDF

References


Büchi, G., Cugno, M., & Castagnoli, R. (2020). Smart factory performance and Industry 4.0. Technological Forecasting and Social Change, 150, 119790. https://doi.org/10.1016/j.techfore.2019.119790

Budianto, Zefki Octa feri, Qomarotun Nurlaila, Tina Hernawati Suryatman, H. S. (2025). Leagility Competencies as Mediator Hybrid Lean Agile and Operational. Vikalpa, 1–20. https://doi.org/10.1177/02560909251319646

Budianto, Surachman, Hadiwidjojo, D., & Rofiaty. (2021). The effect of manufacturing agility competencies on lean manufacturing in increasing operational performance. Uncertain Supply Chain Management. https://doi.org/10.5267/j.uscm.2020.10.001

Dai, H.-N., Wang, H., Xu, G., Wan, J., & Imran, M. (2020). Big data analytics for manufacturing internet of things: opportunities, challenges and enabling technologies. Enterprise Information Systems, 14(9–10), 1279–1303.

Deniša, M., Ude, A., Simonič, M., Kaarlela, T., Pitkäaho, T., Pieskä, S., Arents, J., Judvaitis, J., Ozols, K., Raj, L., Czmerk, A., Dianatfar, M., Latokartano, J., Schmidt, P. A., Mauersberger, A., Singer, A., Arnarson, H., Shu, B., Dimosthenopoulos, D., … Lanz, M. (2023). Technology Modules Providing Solutions for Agile Manufacturing. In Machines (Vol. 11, Issue 9). https://doi.org/10.3390/machines11090877

Gavriluţă, A. C., Niţu, E. L., & Gavriluţă, C. A. (2021). Algorithm to Use Some Specific Lean Manufacturing Methods: Application in an Industrial Production Process. In Processes (Vol. 9, Issue 4). https://doi.org/10.3390/pr9040641

Gelaw, M. T., Azene, D. K., & Berhan, E. (2024). Assessment of critical success factors, barriers and initiatives of total productive maintenance (TPM) in selected Ethiopian manufacturing industries. Journal of Quality in Maintenance Engineering, 30(1), 51–80. https://doi.org/10.1108/JQME-11-2022-0073

Gomes, M. G., da Silva, V. H., Pinto, L. F., Centoamore, P., Digiesi, S., Facchini, F., & Neto, G. C. (2020). Economic, Environmental and Social Gains of the Implementation of Artificial Intelligence at Dam Operations toward Industry 4.0 Principles. In Sustainability (Vol. 12, Issue 9). https://doi.org/10.3390/su12093604

Gunasekaran, A. (1998). Agile manufacturing: Enablers and an implementation framework. International Journal of Production Research, 36(5), 1223–1247. https://doi.org/10.1080/002075498193291

Journal, I., Jermsittiparsert, K., Kraimak, S., Mongkul, K., Ladkrabang, T., Campus, C., Nakandala, D., Elias, A., & Hurriyet, H. (2024). Does the Industry 4 . 0 have any impact on the relationship between Agile Strategic Supply Chain and the Supply Chain Partners Performance. Technological Forecasting & Social Change, 8(8), 123533. https://doi.org/10.1016/j.techfore.2024.123533

Kamble, S., Gunasekaran, A., & ... (2020). Industry 4.0 and lean manufacturing practices for sustainable organisational performance in Indian manufacturing companies. International Journal of …. https://www.tandfonline.com/doi/abs/10.1080/00207543.2019.1630772

Kamble, S., Gunasekaran, A., & Dhone, N. C. (2020). Industry 4.0 and lean manufacturing practices for sustainable organisational performance in Indian manufacturing companies. International Journal of Production Research, 58(5), 1319–1337. https://doi.org/10.1080/00207543.2019.1630772

Lakshmanan, R., Nyamekye, P., Virolainen, V.-M., & Piili, H. (2023). The convergence of lean management and additive manufacturing: Case of manufacturing industries. Cleaner Engineering and Technology, 13, 100620. https://doi.org/https://doi.org/10.1016/j.clet.2023.100620

Matondang, N. (2023). INDUSTRY 4.0 ADOPTION AND LEAN MANUFACTURING PRACTICES FOR MANUFACTURING PERFORMANCE. INTERNATIONAL JOURNAL OF EBUSINESS AND EGOVERNMENT STUDIES, 0744(2022), 174–196. https://doi.org/10.34109/ijebeg.

Najar, T. (2022). Lean-Agile supply chain innovation performance; the mediating role of dynamic capability, innovation capacity, and relational embeddednes. Supply Chain Forum: An International Journal, 23(3), 285–306. https://doi.org/https://doi.org/10.1080/16258312.2022.2031276

Pagliosa, M., Tortorella, G., & Ferreira, J. C. E. (2019). Industry 4.0 and lean manufacturing. Journal of Manufacturing …. https://www.emerald.com/insight/content/doi/10.1108/JMTM-12-2018-0446/full/html

Qureshi, K. M., Mewada, B. G., & Kaur, S. (2023). Assessing Lean 4 . 0 for Industry 4 . 0 Readiness Using PLS-SEM towards Sustainable Manufacturing Supply Chain. 1–19.

Restuputri, D. P., Amalia, F., Masudin, I., & Widayat. (2024). The influence of industry 4.0, internet of things, and physical-cyber systems on human factors: a case study of workers in Indonesian oil and gas refineries. Theoretical Issues in Ergonomics Science, 25(5), 567–592. https://doi.org/10.1080/1463922X.2023.2284295

Rompho, N. (2018). Operational performance measures for startups. Measuring Business Excellence, 22(1), 31–41. https://doi.org/10.1108/MBE-06-2017-0028

Rossini, M., Costa, F., Tortorella, G. L., Valvo, A., Portioli-staudacher, A., Rossini, M., Costa, F., Tortorella, G. L., & Valvo, A. (2021). Lean Production and Industry 4 . 0 integration : how Lean Automation is emerging in manufacturing industry. 0–21. https://doi.org/10.1080/00207543.2021.1992031

Seng, L. K., Nor, N. M., & Ismail, F. (2021). Industry 4 . 0 and Lean Manufacturing Practices : An Approach to Enhance Operational Performance in Singapore ’ s Manufacturing Sector. 2(1), 456–472.

Sharma, V., Raut, R. D., Hajiaghaei-Keshteli, M., Narkhede, B. E., Gokhale, R., & Priyadarshinee, P. (2022). Mediating effect of industry 4.0 technologies on the supply chain management practices and supply chain performance. Journal of Environmental Management, 322, 115945.

Tortorella, G. L., & Giglio, R. (2018). Industry 4 . 0 as a moderator on the relationship between lean and operational performance. 25th International Annual EurOMA Conference, 1–10.

Uhrin, Á., Bruque-Cámara, S., & Moyano-Fuentes, J. (2017). Lean production, workforce development and operational performance. Management Decision, 55(1), 103–118. https://doi.org/10.1108/MD-05-2016-0281


Refbacks

  • There are currently no refbacks.


License URL: https://creativecommons.org/licenses/by/4.0/deed.en

Jurnal SAMaJ Indexed by :

google_scholar onesearch garuda crosref onesearch  sinta scopus