Digitalization in lean manufacturing firms: a cumulative capability development perspective

Abstract

PurposeThe purpose of this paper is to examine the digitalization of operational processes and activities in lean manufacturing firms and explore the associated learning implications through the lens of cumulative capability theory.Design/methodology/approachAdopting a multiple-case design, we examine four cases of digitalization initiatives within lean manufacturing firms. We collected data through semi-structured interviews and direct observations during site visits.FindingsThe study uncovers the development of learning capabilities as a result of integrating lean and digitalization. We find that digitalization in lean manufacturing firms contributes to the development of both routinized and evolutionary learning capabilities in a cumulative fashion.Originality/valueThe study adds nuance to the limited theoretical understanding of the integration of lean and digitalization by showing how it cumulatively develops the learning capabilities of lean manufacturing firms. As such, the study supports the robustness of cumulative capability theory. We further contribute to research by offering empirical support for the cumulative nature of learning.

Beyond Industry 4.0 – integrating Lean, digital technologies and people

“…(Rosenzweig and Roth, 2004), which states that manufacturing plants acquire knowledge and reduce process variances in ways that support diverse capabilities while engaging in novel technologies and improvement activities. In contrast to Rosenzweig and Roth (2004), who argue that capability progression accelerates learning, Powell et al (2024) argue that learning accumulates rather than accelerates. Based on their data, the authors claim that (1) learning is both a facilitator and a result of capability advancement and (2) it is aided by digitalisation.…”

“…A core enhancement lies in the organisational learning process when integrating the two approaches. Galeazzo et al (2024) show that such an integration increases the systematic problem-solving capability of workers, while Powell et al (2024) show that companies can create cumulative learning capabilities through the experimentation and implementation of digital technologies in Lean systems. With this overall picture obtained from the five studies, we can now argue that such outcomes are possible when companies manage different organisational tensions (Margherita and Braccini, 2024;Johansson et al, 2024).…”

“…Margherita and Braccini, 2024;Johansson et al, 2024) showed a preliminary overview of these potential benefits in terms of workers' well-being and learning, while the other studies emphasised these outcomes (i.e. Chavez et al, 2024;Galeazzo et al, 2024;Powell et al, 2024) but also recognised that what they found is present in leading manufactures that have learned how to balance both manufacturing approaches. This allows us to join both sides of the coin and consolidate it in the following proposition:…”

“…A second group of studies considered the outputs realised when integrating Lean and Industry 4.0. The studies developed by Chavez et al (2024), Galeazzo et al (2024) and Powell et al (2024) show that the integration of Lean and Industry 4.0 leads to complementary benefits that transcend the operational performance-related benefits usually considered in the literature. The first two studies are empirical quantitative surveys, while the third is a qualitative investigation of leading companies.…”

“…Cumulative learningPowell et al (2024) investigate digitalisation efforts in Lean manufacturing firms. A multi-case study approach was used, including four separate cases.…”