Navigating the Shift from Industry 4.0 to Industry 5.0 : Managing Trade-offs for Sustainable Production

Abstract

Industry 5.0 (I5.0) compliments Industry 4.0 (I4.0) by introducing systemic sustainability, human-centricity, and resiliency shifts into production habits. As firms transition to I5.0, they face tensions between control and flexibility. Existing research lacks empirical guidance on holistically balancing these forces. Hence, this study explores how firms can navigate the trade off when implementing I5.0 technologies for sustainable production. A mixed-methods approach was applied, combining a Systematic Literature Review, Multiple Case Study, fuzzy DEMATEL analysis, and ontology map. Based on the three I5.0 pillars, thirteen criteria were evaluated to identify causal relationships and critical enablers for I5.0 success. Governance structuring was determined to be the most influential factor, creating ripple effects across other practices. The resulting ontology map serves as a guide for strategic pathway creation to manage I5.0 adoption. By integrating Paradox Theory with decision modeling, this study provides a practical framework to support a balanced approach for implementing I5.0