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The 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.

Adopting 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.

The 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.

The 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.

This study aims to provide an overall framework that connects and explains a macro-perspective of the findings from the five studies of this special issue. Through this, we aim to answer two main questions: How can Lean and Industry 4.0 be integrated, and what are the outcomes for workers from such integration?

The special issue received 64 papers that were evaluated in multiple stages until this final sample of five papers that describe different facets of the integration between Lean and Industry 4.0 and their relationship with worker activities. In this introduction, we review the main findings of these five studies and propose an integrative view and associated propositions. A discussion provides directions to advance the field further.

The framework shows that when Lean and Industry 4.0 are integrated, companies will face two types of tensions, dialectical and paradoxical, which require different managerial approaches. By managing such tensions, the Lean-Industry 4.0 integration can help improve social performance, as well as develop systematic problem-solving and cumulative learning capabilities. Five important themes for this field of research are outlined: the importance of work routines, legitimation, competence, sense and mental flexibility.

This study brings a new theoretical perspective to the integration of Lean with Industry 4.0-related digital technologies. The results go beyond the usual view of improving operational performance and dig into the effects on workers. It also shows that the integration process relies on and can enhance human capabilities such as learning and problem-solving.

This study is intended to motivate and guide future researchers to rethink and update their theories of operational capability development. By examining the extensive body of research on operational capabilities and working closely with an industry partner, the authors are iteratively developing new thinking about why our existing models seem to be failing and what aspects are likely to be useful in updating them.

This pathway paper is based on observations gained through a structured literature review, close collaboration with an industry partner and discussions with other industry partners and executives.

The authors identify ways in which the operations management community could begin to challenge and expand existing models of operational capability development. They provide reflections on the network structure of operational capabilities, i.e. their interconnectedness and interactions, which are likely to evolve dynamically over time and have not yet been part of the authors’ thinking about operational capability development.

The authors hope to stimulate new research through this pathway paper. By synthesizing their existing knowledge of operational capabilities and collaborating with an industry partner, the authors have attempted to highlight their limited knowledge of capability development. In addition, the authors offer several opportunities to rethink their existing models.

Sustainability has become a priority for companies due to pressure from multiple stakeholders. In an overly competitive market, shareholders push for economic results, allowing lean manufacturing to establish itself as dominant paradigm in manufacturing. However, concerns grow regarding how lean implementation can allow companies to achieve sustainable development goals, or, if the resources required for a successful lean implementation can result in a detriment of environmental and social performance. This paper intends to help close the knowledge gap regarding the effects of lean manufacturing on sustainable performance from a triple bottom line perspective, and how operational, environmental and social outcomes interact between themselves.

Two models for the interaction between lean and sustainability were proposed. The first is called the “sand-cone” model, which poses that performance improvements derived from lean are cumulative on each one of the sustainability dimensions. The second is called the “trade-offs” approach. In this case, the resources required to improve one dimension of sustainability clash with those required by the others. Data were gathered from a sample of 133 Colombian metalworking companies and processed using structural equations models.

The results support the cumulative “sand-cone”, which follows a sequence of operational-environmental-social improvement in the presence of lean. For the “trade-offs” model, partial evidence suggests that they can occur in detriment of social performance.

The “sand-cone” and “trade-offs” are empirically tested for the first time in the context of sustainability, providing further knowledge into its interaction with lean manufacturing. The models’ results contribute to practitioners by providing a tested path for companies to improve their performance in a cumulative sequence that will provide better long-term results.

Globalization and the importance of emerging markets have increased the pressure of high-cost manufacturing locations to sustain operations. However, there are still some countries in which manufacturing is prospering despite high costs (like Germany, Sweden and Switzerland). This study examines seven competitive priorities through 24 different capabilities, using a case survey of four manufacturing companies located in Sweden. This study aims to develop a contemporary understanding from vital priorities and capabilities.

A case survey was conducted in four different-sized manufacturing companies in Sweden during the autumn of 2018. In total, the survey attracted 89 responses. Respondents were mainly middle managers and other management team members.

In general, companies assess the importance of manufacturing capabilities higher than performance and improvement. The authors’ analysis shows that quality priority through product and process capabilities is ranked highest in terms of importance, performance and improvement. In addition, delivery capability shows a similarity with quality. At the other end, being lowest ranked are typically different flexibility and advertising capabilities. This study demonstrates with correlation analysis that most often capabilities have a positive correlation in terms of their importance, performance and improvement needs. Some capabilities show potential correlations across importance, performance and improvement.

This research is limited to one high-cost environment and to four companies within that environment. Further research should examine the impact of the pandemic era on manufacturing priorities and capabilities.

In general, case surveys have relatively rarely been used in management studies. This research offers an alternative and deeper perspective from high-cost country manufacturing, as the responses are from numerous persons in management positions.

Smart Manufacturing (SM) lies at the core of Industry 4.0. Operations management research has investigated the determinants of SM advancement but there is still limited understanding of the linkages between SM and organizational factors and about whether both the technological and organizational subsystems for SM are guided by firms’ competitive priorities. To close these gaps, building on operations strategy theory, this paper aims to empirically test a model positing that competitive priorities drive SM advancement. The relation between competitive priorities and SM advancement is assumed to be mediated by organizational microfoundations.

Using data from a single respondent survey with 234 firms in the automotive component industry, structural equation modeling is adopted to test the model hypotheses. Relevant constructs are measured with reference to the lead plant for SM.

Findings highlight that SM advancement is driven by the need to simultaneously compete in terms of cost, quality and delivery, thus suggesting that manufacturers view SM as a mean to develop multiple manufacturing capabilities. Organizational microfoundations fully mediate the relation between competitive priorities and SM advancement.

Results have implications for SM research, as they provide an understanding of the strategic priorities of firms engaging in SM. Findings also bear relevance for manufacturing executives engaged in the SM transformation, as they provide quantitative evidence that shaping an adequate organizational environment is a prerequisite for SM advancement.

The present study conceptualizes and examines the interplay of transformational leadership, ambidexterity and wireless information technology (IT) competency for enhancing innovative capability.

Drawing primarily on the knowledge-based and dynamic capabilities view theory, the present study explored supply chains of a large global apparel company and their effect on innovative capability through a mixed methods approach.

The results show that transformational leaders strongly influence the development of ambidexterity and enhance radical innovative capability through wireless IT competency.

The results of this study suggest that supply chain integration through transformational leadership and wireless IT competency can promote simultaneous exploration and exploitation to enhance innovation.

The growth of cloud and/or virtual supply chains facilitated by digital wireless communications and Internet technology is advancing logistics and supply chain innovations. With increasing global competition, digitalized supply chains and ever-growing environmental uncertainty, leadership traits, especially transformational leadership and ambidextrous leaders, can be major contributing factors for successful development of wireless IT competency to support innovative capability.

Wireless IT competency facilitates knowledge integration particularly for combining prior internal knowledge of exploitative innovation with new external knowledge to develop explorative innovation.

Disasters are growing in frequency and scale, unmasking the systemic vulnerabilities of modern supply chains and highlighting the need to understand how to respond to such events. In the context of an extreme event such as the COVID-19 pandemic, this research focuses on how networks of organizations leverage their combined resources and capabilities to develop, manufacture and deliver new products outside their traditional markets.

Following a theory elaboration process, the authors build on resource orchestration theory to develop data collection and analysis protocols to support a multi-case study research design. This research investigates four cases of newly formed networks that emerged in four different countries – Colombia, Italy, the United States and the United Kingdom–in response to the COVID-19 pandemic.

These four networks in the investigation share common characteristics in terms of motivation and approach, creating patterns from which theoretical generalizations are developed into a series of propositions regarding the process of network-level resource orchestration under extreme uncertainty.

The research shows how networks and the organizations within them can streamline processes, swiftly build new relationships and develop a balanced risk management approach to extreme uncertainty.

This research contributes to theory by extending the resource orchestration model to a network level and showing how extreme uncertainty can lead to the emergence of networks and alter the motivations and goals of the member organizations, allowing them to be more responsive.

To determine how to best deploy the Triple-A supply chain (SC) capabilities (AAA-agility, adaptability and alignment) to improve competitive advantage (CA) by identifying the Triple-A SC model with the highest CA predictive capability.

Assessment of in-sample and out-of-sample predictive capacity of Triple-A-CA models (considering AAA as individual constructs) to find which has the highest CA predictive capacity. BIC, BIC-Akaike weights and PLSpredict are used in a multi-country, multi-informant, multi-sector 304 plant sample.

Greater direct relationship model (DRM) in-sample and out-of-sample CA predictive capacity suggests DRM's greater likelihood of achieving a higher CA predictive capacity than mediated relationship model (MRM). So, DRM can be considered a benchmark for research/practice and the Triple-A SC capabilities as independent levers of performance/CA.

DRM emerges as a reference for analysing how to trigger the three Triple-A SC levers for better performance/CA predictive capacity. Therefore, MRM proposals should be compared to DRM to determine whether their performance is significantly better considering the study's aim.

Results with our sample justify how managers can suitably deploy the Triple-A SC capabilities to improve CA by implementing AAA as independent levers. Single capability deployment does not require levels to be reached in others.

First research considering Triple-A SC capability deployment to better improve performance/CA focusing on model's predictive capability (essential for decision-making), further highlighting the lack of theory and contrasted models for Lee's Triple-A framework.

This paper contributes insights into how different firm types in the emerging market (EM) of Turkey respond to upgrading pressures in terms of internationalization and the usage of domestic political support. It seeks to highlight how the usage of and the responses to different strategies, connections and policy instruments vary with firm types.

Binary logistic regression analysis is used to differentiate and identify characteristics of firms regarding market-seeking strategies and their usage of institutional and financial support. The analysis is based on survey data from firms located in the metro-region of Istanbul: advanced market multinational enterprises (AMNEs), Turkish MNEs (TMNEs) and domestic Turkish firms (DTFs).

Different types of firms within the population of innovative firms in the EM setting of Turkey show significant variety regarding the usage of and the responses to key factors affecting internationalization. AMNEs particularly benefit from investment and export incentives as well as from establishing political connections in Turkey. DTFs significantly use tax incentives and primarily seek advanced markets. TMNEs particularly benefit from investment and export incentives and prefer to target advanced markets.

Using Turkey as a single-country setting is a limitation to the generalizability of the results. Future studies could use more cases of AMNEs to compare different countries of origin. In addition, the intended focus on R&D-related firms produces specific outcomes for such companies.

National and regional policies need to pursue different strategies for the surveyed groups of firms to attract and maintain foreign direct investments (FDIs) of AMNEs as well as to support outward FDIs of domestic firms and EM MNEs. In particular, policies for market entries and knowledge sourcing in advanced markets are becoming a crucial factor for EM firms in overcoming a shortage of resources at home.

This paper’s findings challenge existing theories such as the concept of psychic distance or liabilities of foreignness, which do not always provide an adequate explanation for internationalization activities of EM firms. In addition, it is highly relevant to apply an eclectic or multidimensional concept when conducting research in EMs in order to capture the interrelated constructs of upgrading, internationalization and political support.