The Interplay of Lean Practices and Digitalization on Organizational Learning Systems and Operational Performance

By Vijaya Sunder M, Anupama Prashar
International Journal of Production Economics | February 2024

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www.sciencedirect.com/science/article/pii/S0925527324000495?via%3Dihub

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Sunder M, Vijaya., Prashar, Anupama. The Interplay of Lean Practices and Digitalization on Organizational Learning Systems and Operational Performance International Journal of Production Economics www.sciencedirect.com/science/article/pii/S0925527324000495?via%3Dihub.

International Journal of Production Economics, 2024

Abstract

This research is based on the thesis that organizational processes (via lean practices), technology (via digitalization), and people (via learning) constitute a managerial framework essential for operational performance. It aims to theorize and test the independent and interconnected effects of lean practices and digitalization on operational performance via organizational learning. The researchers combined primary data collected from 209 manufacturing firms listed in the Global Manufacturing Competitive Index database reported by Deloitte from 12 emerging economies using a survey with archival data downloaded from the Orbis database and tested the hypothesized relationships. The results indicate that the learning system mediates the relationship between lean practices and operational performance, but not between digitalization and operational performance. Further, the interaction effects of digitalization on lean practices reveal that the mediation effect of the emergent learning system is prominent when digitalization is high, but not significant when digitalization is low. This study recommends that emergent learning that integrates leanness and digitalization is vital for improving operational performance in the current digital era. It prescribes digitalization as a strategic resource for lean organizations. The results imply that a high level of digitalization blended with lean practices results in better operational performance, and vice versa may not be a good investment for firms.

Vijaya Sunder M is an Assistant Professor of Operations Management (Practice) and Programme Director of the Operational Excellence for Leaders Programme at the Indian School of Business (ISB). He also serves on the advisory board of ISB’s Executive Fellow Programme in Management and Executive Education. Previously, he was Chair of the Experiential Learning Programme (2022-2025), Academic Director of the Centre for Business Innovation (2023–2024), and a BAT Research Fellow (2021–2023).

He holds a PhD in Operational Excellence from IIT Madras and brings over 18 years of industry experience from global corporations. He has served as Head of Business Process Excellence at the World Bank Group, Assistant Vice President at Barclays, and Quality Leader at American Express and Citi.

Professor Sunder’s research focuses on operational excellence, project management, behavioural operations, and human-AI collaboration. He has authored three books and published scholarly research in leading journals, including Production and Operations Management, Journal of Operations Management, International Journal of Operations & Production Management, International Journal of Production Economics, International Journal of Production Research, Journal of Business Research, and IEEE Transactions on Engineering Management. His articles have also appeared in Harvard Business Review, California Management Review, Stanford Social Innovation Review, Management and Business Review, and Rotman Management. His teaching case studies, published by Harvard Business Publishing, are among the bestsellers.
Professor Sunder has received several prestigious honours, including ASQ’s Global Crosby Award, IAQ’s

Walter E. Masing Award, and recognition as one of PEX Network’s (IQPC) Top 50 Operational Excellence Thought Leaders worldwide. In 2025, he was featured in Business Mint’s 50 Under 50 Brightest Minds of India for his contributions to the field of Operational Excellence. He is also a recipient of IIT Madras Best Researcher Award in 2018, the Quality Champion Award (Gold category) by the Quality Control of India (QCI), Ministry of Commerce & Industry, Government of India in 2022, and the Financial Times Responsible Business Education Award (Runner-up) in 2022.

At ISB, he teaches PGP, Executive MBA, and PhD courses such as Business Process Excellence, Operational Excellence, Digital Transformation in Services, Project Management, and Operations Management. He has won multiple “Professor of the Year” – Best Teacher: Teaching Excellence Awards for the PGP core and elective courses for the Class of 2021 (one award), Class of 2023 (two awards), Class of 2024 (one award), Class of 2025 (three awards), and the AMPH Class of 2024 (one award).

A TEDx speaker and sought-after keynote presenter, Professor Sunder has trained over 10,000 business executives worldwide and is widely known for his innovative and experiential pedagogies.

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