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Augmented reality (AR) and virtual reality (VR) are increasingly recognized among technologies potentially driving the digital innovation of small and medium-sized enterprises (SMEs). Nevertheless, the implications of AR/VR adoption in innovation processes have yet to receive much attention to date, with the need to explore the issues facilitating a systematic implementation in the SME context. This study aims to investigate the possible innovation paths of SMEs as a result of AR/VR adoption.

The authors performed a multiple case study research involving six Italian SMEs in manufacturing and service sectors that are investing in AR and/or VR solutions and are digitally innovating thanks to these technologies.

AR/VR solutions lead to different types of innovation in SMEs, i.e. for innovating product or service offerings, business processes or even the business model, when AR/VR extends to the company business logic. SMEs demonstrate being able to leverage internal sources with the essential commitment of top management and low resistance of employees in all kinds of AR/VR-enabled innovations. Conversely, they involve different external innovation sources according to the type of innovation pursued. Organizational issues emerged as more relevant than technological issues.

Results contribute to the literature on digital transformation of SMEs and provide managerial guidance on innovation sources and organizational issues to be considered to effectively deploy AR/VR solutions into specific innovation paths.

This study explores the impact of emergent technologies in the innovation process along with multiple perspectives, degree of complexity, and strategic importance in the SME context.

Acknowledging the importance of both lean thinking (LT) and Industry 4.0 (I4.0) for successful business performance and organisational success, the present study investigates the critical success factors (CSFs) for the concurrent implementation of both approaches, a field not yet significantly explored.

The study conducts two systematic literature reviews (SLRs), one on LT and the other one on I4.0 to map out the CSFs for the effective implementation of each approach. These CSFs are subsequently prioritised with the use of a Delphi Study. Finally, from the set of the common CSFs recognised through the two approaches, a more condensed list is put forward as the first step towards achieving a successful synergy between LT and I4.0.

The study’s findings suggest the most important CSFs and determine their definition in the context of a concurrent implementation of LT and I4.0. This can provide managers and practitioners with the awareness of crucial factors, enabling them to take the necessary steps for planning and implementing both approaches.

A concise set of CSFs for the concurrent implementation of both LT and I4.0 has been identified, which can be viewed as a starting point for providing top executives and managers with useful insights into enhanced business efficiency and performance. This study furthermore contributes to the overall body of knowledge on LT and I4.0.

The scholarly literature that explores a common set of CSFs for the concurrent implementation of LT and I4.0 is limited. This gap significantly enhances the importance of the present research, contributing to a better understanding amongst both academics and practitioners of the key supporting factors for the integration of the two approaches.