Evaluating the impact of Lean 4.0 on operational excellence and sustainable performance of Indian automotive manufacturing industry: a PLS-SEM approach

Purpose This study investigates the role of Lean 4.0 in operational excellence and sustainability within Indian automotive manufacturing units. This study aims to establish how the digital technologies of Industry 4.0 integrate with lean manufacturing tools to enhance operational performance and the triple bottom line of sustainability while exhibiting the mediating role of operational excellence. Design/methodology/approach A mixed-methods research design was adopted. A structured questionnaire was administered across multiple Indian automotive firms, and 198 valid responses from mid-to-large automotive component and original equipment manufacturers in India were selected for analysis. Partial least squares structural equation modeling via SmartPLS 4.0 was used to evaluate the hypothesized relationships between Lean 4.0, operational excellence and sustainability outcomes. To enhance external validity, a case study was conducted at a Pune, Maharashtra, India-based leading automotive supplier (Tier-1), providing qualitative insights and triangulation with the model’s empirical findings. Findings The findings reveal a significant positive impact of Lean 4.0 on both operational excellence and sustainability. Moreover, the relationship between Lean 4.0 and sustainability is somewhat mediated by operational excellence, but these effects are greatly moderated by organizational characteristics including leadership support and digital readiness. A case study demonstrates observable enhancements such as shorter cycle times, increased equipment efficiency and energy savings. Practical implications This study emphasizes how crucial it is to strategically match digital transformation with lean approaches to promote sustainable performance as well as production efficiency. Manufacturers can use the information to help with workforce preparedness, technology adoption and policymaking. The information also helps business and government organizations create incentives and support structures for the implementation of digital-lean practices. Originality/value This innovative study shows how Lean 4.0 methods relate to sustainability and operational excellence in the Indian automobile industry. It is supported by both a real-world case study and sophisticated statistical modeling.