Driving operational excellence: the role of technology-organization-environment framework in Lean Six Sigma Integrated Industry 4.0 adoption

Abstract

Adopting technological innovations is crucial for organizations to survive in dynamic and competitive market scenarios. Moreover, it is essential to understand the customer needs and respond accordingly. The present research makes use of Technology-Organization-Environment (TOE) framework for Lean Six Sigma Integrated Industry 4.0 (LSSI) adoption. Scholarly literature shows that adopting LSSI drastically reduces waste and variations while facilitating real-time data analysis. However, empirical studies on LSSI adoption are limited and therefore, this study was conducted, with data collected from 287 respondents employed in various industries. Structural Equation Modeling (SEM) was used to analyze research model, and the results indicate that TOE dimensions significantly impact LSSI adoption, which in turn influences operational performance. Furthermore, strategic alignment toward sustainability initiatives partially mediates the relationship between LSSI and operational performance, and these results are highly useful for practitioners, managers, and researchers aiming to adopt LSSI.