The Interplay of Lean Practices and Digitalization on Organizational Learning Systems and Operational Performance

This research is based on the thesis that organizational processes (via lean practices), technology (via digitalization), and people (via learning) constitute a managerial framework essential for operational performance. It aims to theorize and test the independent and interconnected effects of lean practices and digitalization on operational performance via organizational learning. The researchers combine primary data collected from 209 manufacturing firms listed in the Global Manufacturing Competitive Index database reported by Deloitte, from 12 emerging economies, using a survey, with archival data downloaded from the Orbis database and test the hypothesized relationships. The results indicate that the learning system mediates the relationship between lean practices and operational performance, but not between digitalization and operational performance. Further, the interaction effects of digitalization on lean practices revealed that the mediation effect of the emergent learning system is prominent when digitalization is high, but not significant when digitalization is low. This study recommends that emergent learning that integrates leanness and digitalization is vital for improving operational performance in the current digital era. It prescribes digitalization as a strategic resource for lean organizations. The results imply that a high level of digitalization blended with lean practices results in better operational performance, and vice versa may not be a good investment for firms.