Integrating industry 5.0 technologies with sustainability and circular economy practices in supply chains: a hybrid empirical PLS-SEM approach

Chuks Medoh, Charles Mbohwa

Abstract


Industry 5.0 (I5.0) eases sustainable development by shifting the focus from entirely efficiency-driven automation (Industry 4.0) to a sustainable, human-centric, and resilient model. I5.0 transforms Supply Chain Management (SCM) by integrating green computing, IoT, AI, and collaborative robots with human intelligence. This improves efficiency, personalization, and worker safety resulting in agile supply chains that prioritize ethical practices and environmental responsibility. This paper provides an expansive viewpoint to the research on I5.0 by exploring the interplay relating to I5.0 and SCM. A Structural Equation Model (SEM) is used to study the future opportunities in SCM, integrating I5.0, circular practices, and sustainability. Synthetic data from 300 SCM/operations managers is generated to reflect real survey reactions with built-in correlations matching the hypothesized pathways. A Likert scale from 1-7 is used with the results indicating an excellent reliability and validity. The hypothesized structural relationships indicate positive and highly significant correlations. The results present valuable insights for policymakers seeking to integrate I5.0 protocols into SCM to expand on sustainable practices and circular economy initiatives.

Received 15 May 2026

Accepted 11 August 2026

Published 13 September 2026


Keywords


Industry 5.0; Supply Chain Management; Circular Economy; Sustainability; Structural Equation Modelling; Supply Chain Performance)

Full Text:

PDF

References


I. Yitmen and A. Almusaed, Eds., “Industry 4.0 Transformation Towards Industry 5.0 Paradigm - Challenges, Opportunities and Practices,” Artificial Intelligence, Sep. 2024, doi: 10.5772/intechopen.1001746.

P. Legato, L. Malizia, and R. M. Mazza, “Enhancing Worker Well-Being in Digital Service Systems via Numerical Simulation,” Procedia Computer Science, vol. 274, pp. 1034–1044, 2025, doi: 10.1016/j.procs.2025.12.101.

S. Chatterjee and R. Chaudhuri, “Impacts of Industry 5.0 In Supply Chain Flow in Post COVID-19 Era: Moderating Role of Senior Leadership Support,” Information Systems Frontiers, Jan. 2024, doi: 10.1007/s10796-023-10463-w.

Faisol, S. Aliami, R. Aswi Ramadhani, and V. Kumar, “Industry 5.0 Technologies and Firm Performance: Mediating Role of Supply Chain Management,” EDPACS, vol. 71, no. 2, pp. 39–61, Jul. 2025, doi: 10.1080/07366981.2025.2523974.

C. L. Karmaker et al., “Industry 5.0 Challenges for Post-Pandemic Supply Chain Sustainability in an Emerging Economy,” International Journal of Production Economics, vol. 258, p. 108806, Apr. 2023, doi: 10.1016/j.ijpe.2023.108806.

N. Fares, C. Anass, V. Shardeo, and J. A. Garza-Reyes, “Supply Chain Management in the Industry 5.0 Era: Strategic Implications,” Benchmarking: An International Journal, pp. 1–29, Sep. 2025, doi: 10.1108/bij-12-2024-1136.

R. Rame, P. Purwanto, and S. Sudarno, “Industry 5.0 And Sustainability: An Overview of Emerging Trends and Challenges for a Green Future,” Innovation and Green Development, vol. 3, no. 4, pp. 100173–100173, Dec. 2024, doi: 10.1016/j.igd.2024.100173.

M. T. Islam, K. Sepanloo, S. Woo, S. H. Woo, and Y.-J. Son, “A Review of the Industry 4.0 To 5.0 Transition: Exploring the Intersection, Challenges, and Opportunities of Technology and Human–Machine Collaboration,” Machines, vol. 13, no. 4, p. 267, Mar. 2025, doi: 10.3390/machines13040267.

M. Sarfraz and M. K. Bhutta, “Integrating Industry 5.0 And Smart Supply Chains: A Moderated Serial Mediation Model of Digital Transformation for Sustainable Performance,” Sustainable Development, Feb. 2026, doi: 10.1002/sd.70811.

D. Sharma, M. Gupta, R. K. Kovid, T. P. Singh, P. Kumar, and A. Hayat, Industry 5.0. Boca Raton: CRC Press, 2025.

H. Abbas, I. E. Salem, H. W. Akram, and S. Abbas, “Exploring Partial Least Squares Structural Equation Modeling (PLS-SEM) Applications in Supply Chain Research: A Bibliometric Analysis and Science Mapping Approach,” Operations Research Forum, vol. 6, no. 4, p. 142, Sep. 2025, doi: 10.1007/s43069-025-00556-4.

W. Guangju, F. Batool, S. Hussain, M. Jabeen, M. Ali, and A. Afzal, “Impact of Industry 4.0 And 5.0 Technologies on Circular Economy and Sustainable Performance Using Hybrid PLS‐SEM and ANN Approach,” Human Behavior and Emerging Technologies, vol. 2025, no. 1, Jan. 2025, doi: 10.1155/hbe2/9920983.

A. S. Jadhav, “Industry 5.0: A Comprehensive Review of Human-Centric, Sustainable, and Resilient Manufacturing and Supply Chain Systems.,” International Journal for Research in Applied Science and Engineering Technology, vol. 14, no. 2, pp. 823–827, Feb. 2026, doi: 10.22214/ijraset.2026.77327.

H. Nazarian and S. A. Khan, “The Impact of Industry 5.0 On Supply Chain Performance,” International Journal of Engineering Business Management, vol. 16, Oct. 2024, doi: 10.1177/18479790241297022.

M. Ghobakhloo, H. A. Mahdiraji, M. Iranmanesh, and V. Jafari-Sadeghi, “From Industry 4.0 Digital Manufacturing to Industry 5.0 Digital Society: A Roadmap Toward Human-Centric, Sustainable, and Resilient Production,” Information Systems Frontiers, Feb. 2024, doi: 10.1007/s10796-024-10476-z.

C. Fabrício Poltronieri, L. Rosa Leite, Y. Silva Martins Xavier, J. Pedro Teixeira Domingues, J. Carlos de Toledo, and O. José de Oliveira, “Toward Industry 5.0: Mapping Technologies, Competencies, and Research Opportunities,” Journal of Entrepreneurship, Management and Innovation, vol. 21, no. 4, pp. 103–129, 2025, doi: 10.7341/20252145.

H. J. Pasman and S. W. Behie, “The Evolution to Industry 5.0 / Safety 5.0, The Developments in Society, and Implications for Industry Management,” Journal of Safety and Sustainability, vol. 1, no. 4, pp. 202–211, Nov. 2024, doi: 10.1016/j.jsasus.2024.11.003.

A. Rejeb, K. Rejeb, J. G. Keogh, and E. Süle, “When Industry 5.0 Meets the Circular Economy: A Systematic Literature Review,” Circular Economy and Sustainability, vol. 5, no. 4, pp. 2621–2652, Apr. 2025, doi: 10.1007/s43615-025-00570-y.

M. N. Shafique, U. Adeel, and A. Rashid, “The Synergy Between Industry 5.0 And Circular Economy for Sustainable Performance in the Chinese Manufacturing Industry,” Sustainability, vol. 16, no. 22, pp. 9952–9952, Nov. 2024, doi: 10.3390/su16229952.

S. R. Khiste and M. M. Jagtap, “The Role of Sustainable Production in Linking Green Logistics Practices to Circular Economy Implementation in Manufacturing,” Advances in Economics, Business and Management Research, pp. 103–119, 2025, doi: 10.2991/978-94-6463-914-8_9.

D. J. Teece, G. Pisano, and A. Shuen, “Dynamic Capabilities and Strategic Management,” Strategic Management Journal, vol. 18, no. 7, pp. 509–533, 1997, doi: doi: 10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z.

J. F. Hair, G. T. M. Hult, C. M. Ringle, M. Sarstedt, N. P. Danks, and S. Ray, Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Springer International Publishing, 2021. Accessed: Sep. 01, 2026. [Online]. Available: https://link.springer.com/book/10.1007/978-3-030-80519-7

J. F. J. Hair, M. Sarstedt, C. M. Ringle, and S. P. Gudergan, Advanced Issues in Partial Least Squares Structural Equation Modeling. SAGE Publications, 2017.

M. Sarstedt, C. M. Ringle, and J. F. Hair, “Partial Least Squares Structural Equation Modeling,” in Handbook of Market Research, Cham: Springer Nature Switzerland, 2025, pp. 1–56.

N. Kock, “Common Method Bias in PLS-SEM: A Full Collinearity Assessment Approach,” International Journal of e-Collaboration, vol. 11, no. 4, pp. 1–10, Oct. 2015.




DOI: https://dx.doi.org/10.21622/ACE.2026.06.2.2157

Refbacks

  • There are currently no refbacks.


Copyright (c) 2026 Chuks Medoh, Charles Mbohwa

Advances in Computing and Engineering

E-ISSN: 2735-5985

P-ISSN: 2735-5977

 

Published by:

Academy Publishing Center (APC)

Arab Academy for Science, Technology and Maritime Transport (AASTMT)

Alexandria, Egypt

ace@aast.edu