Lean Production Determinants and Performance Consequences of Implementation of Industry 4.0 in Thailand: Evidence from Manufacturing Sector

Abstract

Firms, regardless of their sectors, always try to ensure good financial and operational performance and this is becoming primary reason of implementation of Industry 4.0. Manufacturing sector of Thailand is also quite obsessed about these performance dimensions which were recently declining in absence of Industry 4.0. Such a declined shift can be managed through lean production practices at different stakeholders’ level like supplier, customer and internal organization. This study has aimed to analyze the impact of lean production practices on operational and financial performance of manufacturing firms in Thailand in mediating role of implementation of industry 4.0. Data has been collected from employees of 53 manufacturing firms in Thailand through structured questionnaire and then this data was analyzed on SPSS and AMOS for screening and hypotheses testing respectively. The results have shown that all lean production practices increase financial and operational performance of manufacturing firms in Thailand. Moreover, a significant mediating role of implementation of industry 4.0 was also signaled by the results. Originality of this study was to take implementation of industry 4.0 as a bridge between lean production practices and performance dimensions. Implications of this study are expanded on theoretical, practical and policy making fronts.