How much does Lean Manufacturing need environmental and information technologies?

Abstract

This paper analyses the role played by Environmental and Information Technologies (ET&IT) in the capability of Lean Manufacturing (LM) to achieve improved industrial performance. In contrast to seminal literature about lean practices, and in view of increasing consumer requirements regarding response times and environmental concerns, we suggest that shop-floor technologies are crucial for transforming lean routines into enhanced performance. Hypotheses were tested in a multisectoral sample of 763 manufacturing plants (NACE codes 15–37) from five different European countries. Results confirm total mediation by both technologies between lean routines and industrial performance, which entails that LM establishes efficient conditions on the shop floor for developing technology-enabled capabilities that can be leveraged to improve industrial performance. From a managerial perspective our findings highlight the need for avoiding short-sighted attitudes and for internalising plant technologies within lean transformation projects. This is important not only because such technologies are determinant for maximising the potential of organisational routines in current manufacturing systems but also because of their intrinsic benefits.