Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)

Empowering Small Medium Enterprises for Industry 4.0: The Impact of Lean 4.0 on Operational Excellence through Digital Agility

Authors
Azyyati Anuar1, *, Sharina Saad2, Mohamad Fazali Ghazali3, Daing Maruak Sadek4, Azlyn Ahmad Zawawi5, Hafizah Hammad Ahmad Khan6, Noorlaila Husna Mohd Yusof5
1Faculty of Business and Management, Digital Innovation and Social Entrepreneurship, Universiti Teknologi MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Malaysia
2Academic Language Studies, Universiti Teknologi MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Malaysia
3Kulliyyah of Islamic Finance, Management Sciences & Hospitality, Universiti Islam Antarabangsa Sultan Abdul Halim Mu’adzam Shah, Kuala Ketil, Kedah, Malaysia
4Academy of Contemporary Islamic Studies, Universiti Teknologi MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Malaysia
5Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Malaysia
6Faculty of Business and Management, Universiti Teknologi MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Malaysia
*Corresponding author. Email: azyyati@uitm.edu.my
Corresponding Author
Azyyati Anuar
Available Online 22 August 2025.
DOI
10.2991/978-94-6463-827-1_25How to use a DOI?
Keywords
Lean 4.0; Digital Agility; Operational Efficiency
Abstract

The transition to Industry 4.0 (I4.0) presents significant challenges for small and medium enterprises (SMEs), particularly in integrating Lean 4.0 (L4.0) to enhance operational efficiency. Despite the recognized benefits of lean manufacturing principles, SMEs often struggle with limited financial resources, technological readiness, and workforce digital literacy, impeding their ability to fully leverage advanced digital tools. To address these challenges, this study aims to develop a conceptual framework that links Lean 4.0 with operational efficiency, emphasizing the mediating role of digital agility. A narrative review methodology was utilized to critically analyze and synthesize existing literature on Lean 4.0, digital agility, and operational efficiency, with the theoretical framework grounded in the Dynamic Capabilities Theory (DCT). The findings suggest that need for a conceptual framework that establishes a clear link between Lean 4.0, digital agility, and operational excellence, emphasizing how digital agility acts as a critical enabler for maximizing the impact of Lean 4.0 on SMEs’ performance. The study contributes to theory by reinforcing the role of digital agility in Lean 4.0 transformation and provides practical insights for business leaders, policymakers, and industry practitioners on strategic implementation of Lean 4.0 in resource-constrained SMEs. Future research should focus on empirical validation of the proposed framework, examining sector-specific barriers and exploring long-term sustainability strategies to ensure successful Lean 4.0 adoption in SMEs.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
22 August 2025
ISBN
978-94-6463-827-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-827-1_25How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

TY  - CONF
AU  - Azyyati Anuar
AU  - Sharina Saad
AU  - Mohamad Fazali Ghazali
AU  - Daing Maruak Sadek
AU  - Azlyn Ahmad Zawawi
AU  - Hafizah Hammad Ahmad Khan
AU  - Noorlaila Husna Mohd Yusof
PY  - 2025
DA  - 2025/08/22
TI  - Empowering Small Medium Enterprises for Industry 4.0: The Impact of Lean 4.0 on Operational Excellence through Digital Agility
BT  - Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)
PB  - Atlantis Press
SP  - 386
EP  - 398
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-827-1_25
DO  - 10.2991/978-94-6463-827-1_25
ID  - Anuar2025
ER  -