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ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 10, Issue 3 (March 2023), Pages: 143-156

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 Original Research Paper

Implementing Industry 4.0 and lean practices for business performance in manufacturing: Case of Malaysia

 Author(s): 

 Yenn Harn Ooi 1, *, Tan Ching Ng 1, 2, Wen Chiet Cheong 1, 3

 Affiliation(s):

 1Lee Kong Chian Faculty of Engineering and Science, Universiti Tunku Abdul Rahman, Selangor, Malaysia
 2Centre for Business and Management, Universiti Tunku Abdul Rahman, Selangor, Malaysia
 3Centre for Photonics and Advanced Materials Research, Universiti Tunku Abdul Rahman, Selangor, Malaysia

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0003-4138-4250

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2023.03.019

 Abstract:

Manufacturing industries had embraced the trend of conceiving a robust manufacturing system and enhancing business performance with the implementation of Industry 4.0 digital technologies and lean manufacturing practices. Despite multiple studies being conducted to identify the correlation between Industry 4.0 digital technologies, lean manufacturing practices, and business performance, ambiguous and conflicting statements are often being debated among researchers. Hence, this study aims to provide empirical evidence gathered from Malaysian manufacturing industries using questionnaires to investigate and model their correlation and explore the mediating influence of Industry 4.0 digital technologies on lean manufacturing practices and business performance using PLS-SEM. Consequently, the findings from 124 respondents were compared with prior studies and revealed that both Lean Manufacturing Practices and Industry 4.0 Digital Technologies are positively correlated with one another, and they positively influence business performance, which findings are coherent with prior studies and fortifying the urgency of implementing both concepts for business performance enhancement. Moreover, this study successfully revealed that Industry 4.0 digital technologies mediate lean manufacturing practices and business performance proving the importance of Industry 4.0 to solving Lean’s limitation, which is not studied in prior studies. In addition, the framework in this study is more practical in providing appropriate theoretical and managerial insights for future action and works due to its medium predictive power associated. In a nutshell, this study effectively implies the substantial roles and reinforced the pragmatisms of implementing both lean manufacturing practices and Industry 4.0 digital technologies concurrently for business excellence.

 © 2022 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Industry 4.0, Lean manufacturing, Business performance, PLS-SEM, Higher-order construct

 Article History: Received 6 September 2022, Received in revised form 19 December 2022, Accepted 20 December 2022

 Acknowledgment 

The authors would like to thank the opportunity to acknowledge and thank Universiti Tunku Abdul Rahman (UTAR) for funding the work under UTAR Research Fund (UTARRF) 2021 Cycle 1 (Vote No. 6550/1N02). In addition, we thank the reviewers and associate editor for their comments which significantly improved this article.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Ooi YH, Ng TC, and Cheong WC (2023). Implementing Industry 4.0 and lean practices for business performance in manufacturing: Case of Malaysia. International Journal of Advanced and Applied Sciences, 10(3): 143-156

 Permanent Link to this page

 Figures

 Fig. 1 

 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 

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