This study develops a theoretical framework explaining how Lean Practices (LP) mediate the relationship between Industry 4.0 Technologies (I4T) and Digital Transformation (DT) outcomes. It addresses a key gap in understanding how organizational practices influence the transformative impact of advanced digital technologies. Drawing on Benner and Tushman’s process management trade-offs and Sambamurthy et al.’s IT-enabled capabilities, the study conceptualizes I4T, LP, and DT as interrelated constructs. Using an inductive Gioia methodology and cross-case analysis, it identifies mechanisms through which I4T and LP interact to drive transformation. The study finds four mechanisms by which specific I4T synergize with LP to enable DT across operational processes, customer experience, and business models. These are formalized into propositions that illustrate the mediating role of LP, the trade-offs involved, and key contingencies. The resulting framework shows how I4T contribute to DT through lean’s socio-technical capabilities. This research contributes to IT-enabled transformation literature by showing that I4T’s potential is only realized when combined with LP. It bridges efficiency- and innovation-oriented views and offers a multitheoretical explanation for successful DT. While qualitative, the study encourages future quantitative testing. Practically, it offers a roadmap for aligning digital technologies with lean practices to achieve more effective transformation.