This study aims to investigate how Industry 4.0 technologies (I4T) influence operational performance (OP) through the mediating roles of Lean practices (LP) and digital transformation (DT), using IT-enabled capability theory as the guiding framework. While I4T offer strong potential to enhance OP, prior research shows that their impact is often limited without supporting organizational capabilities. This study reframes LP as dynamic capabilities that embed technology into day-to-day routines through continuous improvement and stakeholder engagement, while DT is conceptualized as a strategic capability that enables scaling and alignment with broader goals.
Survey data were collected from 345 professionals involved in I4T, LP and DT initiatives in e-commerce-enabled firms. A serial mediation model was tested with PLS-SEM. I4T were differentiated into enabling and supporting technologies; LP were modeled as dynamic capabilities and DT as strategic capabilities.
Neither enabling nor supporting I4T directly improves OP. Performance gains emerge through a sequential capability pathway: LP converts technology potential into disciplined operational routines, and DT scales those routines into enterprise-wide strategic alignment. The serial mediation I4T → LP → DT → OP is statistically significant for both technology types, confirming that capability sequencing.
Cross-sectional, self-reported data limit strong causal inference because the temporal ordering implied by the serial mediation model cannot be directly observed. Accordingly, the proposed sequence should be interpreted as theoretically specified and empirically consistent rather than as definitive evidence of causality. Future longitudinal, multi-wave and mixed-method studies should examine temporal dynamics, socio-technical complementarities and contextual contingencies.
Organizations should sequence digital investments through a Lean-first approach, embedding I4T within continuous improvement routines before scaling through DT. The findings also inform policy and education by highlighting that digital readiness requires organizational capability building, not only technology acquisition.
This study reconceptualizes LP as dynamic capabilities, differentiates enabling and supporting I4T and provides an empirically validated capability-integration pathway that connects digital investment to performance.
