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We studied the relationship between job engagement and systematic problem solving (SPS) among shop-floor employees and how lean production (LP) and Internet of Things (IoT) systems moderate this relationship.

We collected data from a sample of 440 shop floor workers in 101 manufacturing work units across 33 plants. Because our data is nested, we employed a series of multilevel regression models to test the hypotheses. The application of IoT systems within work units was evaluated by our research team through direct observations from on-site visits.

Our findings indicate a positive association between job engagement and SPS. Additionally, we found that the adoption of lean bundles positively moderates this relationship, while, surprisingly, the adoption of IoT systems negatively moderates this relationship. Interestingly, we found that, when the adoption of IoT systems is complemented by a lean management system, workers tend to experience a higher effect on the SPS of their engagement.

One limitation of this research is the reliance on the self-reported data collected from both workers (job engagement, SPS and control variables) and supervisors (lean bundles). Furthermore, our study was conducted in a specific country, Italy, which might have limitations on the generalizability of the results since cross-cultural differences in job engagement and SPS have been documented.

Our findings highlight that employees’ strong engagement in SPS behaviors is shaped by the managerial and technological systems implemented on the shop floor. Specifically, we point out that implementing IoT systems without the appropriate managerial practices can pose challenges to fostering employee engagement and SPS.

This paper provides new insights on how lean and new technologies contribute to the development of learning-to-learn capabilities at the individual level by empirically analyzing the moderating effects of IoT systems and LP on the relationship between job engagement and SPS.

Following the imperative for human-centric digital innovation brought by the paradigm of Industry 5.0, the article aims to integrate the dispersed and multi-disciplinary literature on individual risks for workers to define, explain and predict individual risks related to Industry 4.0 technologies.

The paper follows the question, “What is the current knowledge and evidence base concerning risks related to Industry 4.0 technologies, and how can this inform digital innovation management in the manufacturing sector through the lens of the Industry 5.0 paradigm?” and uses the method of systematic literature review to identify and discuss potential risks for individuals associated with digital innovation. N = 51 contributions met the inclusion criteria.

The literature review indicates dominant trends and significant gaps in understanding risks from a human-centric perspective. The paper identifies individual risks, their interplay with different technologies and their antecedents at the social, organizational and individual levels. Despite this, the paper shows how the literature concentrates in studying risks on only a limited number of categories and/or concepts. Moreover, there is a lack of consensus in the theoretical and conceptual frameworks. The paper concludes by illustrating an initial understanding of digital innovation via a human-centered perspective on psychological risks.

Findings yield practical implications. In investing in the adoption, generation or recombination of new digital technologies in organizations, the paper recommends managers ensure to prevent risks at the individual level. Accordingly, the study’s findings can be used as a common starting point for extending the repertoire of managerial practices and interventions and realizing human-centric innovation.

Following the paradigm of Industry 5.0, the paper offers a holistic view of risks that incorporates the central role of the worker as crucial to the success of digital innovation. This human-centric perspective serves to inform the managerial field about important factors in risk management that can result in more effective targeted interventions in risk mitigation approaches. Lastly, it can serve to reinterpret digital innovation management and propose future avenues of research on risk.

One pertinent dynamic phenomenon in supply chains is the amplification of order variance, i.e. the bullwhip effect. Its continued significance is underscored in contemporary empirical research. While numerous publications have pinpointed various causes of the bullwhip effect, there remains a gap in their systematic consolidation. The purpose of this paper is to compile a comprehensive list of the causes of the bullwhip effect from existing literature and categorize them appropriately.

This study conducts a systematic literature review to offer a comprehensive overview of bullwhip effect causes addressed in the existing literature. The identified causes are categorized using a qualitative content analysis approach.

The study shows the diversity of the causes of the bullwhip effect and their interdependencies. In addition, this study demonstrates that, at the highest level of aggregation, causes of the bullwhip effect can be classified into four main categories: causes inherent in the system structure, causes related to uncertainty, causes related to misaligned incentives and causes related to inadequate cognition of the situation.

The work provides an extensive overview and categorization of bullwhip effect causes, offering valuable insights for both researchers and practitioners seeking a deeper understanding of this phenomenon. In addition, it underscores managerial implications and highlights future research opportunities.

The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management systems and “S-curve” effects in lean implementation are used to ground the paper's hypotheses and interpret its findings.

Using the emerging view of lean as enterprise-wide management systems, this quasi-experimental study uses a difference-in-differences approach to estimate the abnormal profitability (ROIC) attributable to lean management system adoption. The paper leverages a unique data set of lean adopters nested in a panel data set (19 years) of 2,088 industrial firms matched by industry and firm size. It applies a variety of regression methods (two-way fixed effect panel estimator, propensity score matching, instrumental variable two-stage-least squares) to estimate the size of the abnormal profitability attributable to lean management systems, addressing endogeneity issues related to non-random sampling, omitted variable bias and reverse causation. It also analyzes the cross-firm variability of such abnormal profitability and how it accrues over time.

For the average non-adopter in the sample (44.3 million euro revenues), lean adoption generates abnormal ROIC ranging from 1.4% to 3.9%. These results come into effect approximately three years after starting lean adoption and peak after eight years. While the average abnormal profitability attributable to lean adoption is sizable, it varies significantly across firms and over time. This significant variation is compatible with firms' diverse ability to understand the complex inner workings of lean systems, and to design and implement them so that they improve profitability.

The conceptualization of lean as enterprise-wide management system can be further refined to more effectively categorize the components of lean systems and investigate the nature of their relationships. Lean system adoption measurement can be fine-tuned to better capture cross-firm and longitudinal heterogeneity. Future work can explore other dependent variables of interest to different stakeholders including shareholders' value, employment and environmental and social sustainability.

The financial benefits of adopting lean can be reaped to the extent to which managers embrace lean as a philosophy and implement it pervasively in the organization. A firm can use the study's estimates as a basis for making calculations about the returns of investment in lean adoption. The paper also shows that “getting the lean system right” makes a significant difference in terms of abnormal profitability, which is twice as large for the best lean adopters..

Compared with the promises of many lean proponents and supporters, the paper provides a more realistic view of what to expect from lean adoption in terms of profitability. Adopting lean as a comprehensive, enterprise-wide management system is not a universal panacea, but a complex endeavor, characterized by multiple complex decisions that require considerable capabilities, coordinated efforts and consistency of action.

Differently from extant research, this study does not study the correlation between the adoption of lean operation practices and financial performance but focuses on the abnormal profitability generated by the adoption of lean as a pervasive, enterprise-wide management system. Its research design allows to identify the differential profitability attributable to lean adoption and documents that it accrues non-linearly.