IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v78y2024ics0160791x24001970.html
   My bibliography  Save this article

Digital transition from industry 4.0 to industry 5.0 in smart manufacturing: A framework for sustainable future

Author

Listed:
  • Sarkar, Bishal Dey
  • Shardeo, Vipulesh
  • Dwivedi, Ashish
  • Pamucar, Dragan

Abstract

Digital transition to Industry 5.0 (I5.0) has finally arrived after Industry 4.0 (I4.0) was offered ten years ago to help address industry flaws in manufacturing. I5.0 is necessary in contemporary business to achieve competitive advantages for a sustainable future. However, despite the importance of I5.0, the critical success factors (CSFs) for the transition from I4.0 to I5.0 have not been explored extensively in the literature. This study develops a model to investigate potential CSFs for the smooth transition from I4.0 to I5.0. The study ensures systems flexibility, then ranks the identified CSFs based on their influential weights and explores their interrelationships. The study adopts the Bayesian best-worst method (B-BWM) to assess the perceptions of several decision-makers from a probabilistic perspective for reducing information loss. The results from this study reflect that CSFs, such as adoption of advanced technology to create value in I5.0 paradigm, high-powered analytical ability for smart manufacturing, cost and funding in transition from I4.0 to I5.0, aligned organizational strategy in transition to I5.0, and security and privacy to ensure effective digital transformation, contribute significantly towards the digital transformation from I4.0 to I.50 in smart manufacturing in the context of steel manufacturing business environment considering the developing countries. The successful implementation of CSFs can help achieve flexibility in the supply chain, contribute to flexible systems and support managers in framing strategies that help them prioritize for an easy transition towards a sustainable future.

Suggested Citation

  • Sarkar, Bishal Dey & Shardeo, Vipulesh & Dwivedi, Ashish & Pamucar, Dragan, 2024. "Digital transition from industry 4.0 to industry 5.0 in smart manufacturing: A framework for sustainable future," Technology in Society, Elsevier, vol. 78(C).
  • Handle: RePEc:eee:teinso:v:78:y:2024:i:c:s0160791x24001970
    DOI: 10.1016/j.techsoc.2024.102649
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X24001970
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techsoc.2024.102649?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Amin Vafadarnikjoo & Madjid Tavana & Tiago Botelho & Konstantinos Chalvatzis, 2020. "A neutrosophic enhanced best–worst method for considering decision-makers’ confidence in the best and worst criteria," Annals of Operations Research, Springer, vol. 289(2), pages 391-418, June.
    2. Sehrish Atif, 2023. "Analysing the alignment between circular economy and industry 4.0 nexus with industry 5.0 era: An integrative systematic literature review," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2155-2175, August.
    3. Schoenherr, Tobias, 2023. "Supply chain management professionals’ proficiency in big data analytics: Antecedents and impact on performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 169(C).
    4. Srivastava, Deepak Kumar & Kumar, Vikas & Ekren, Banu Yetkin & Upadhyay, Arvind & Tyagi, Mrinal & Kumari, Archana, 2022. "Adopting Industry 4.0 by leveraging organisational factors," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    5. Marina Crnjac Zizic & Marko Mladineo & Nikola Gjeldum & Luka Celent, 2022. "From Industry 4.0 towards Industry 5.0: A Review and Analysis of Paradigm Shift for the People, Organization and Technology," Energies, MDPI, vol. 15(14), pages 1-20, July.
    6. Pavol Durana & Pavol Kral & Vojtech Stehel & George Lazaroiu & Wlodzimierz Sroka, 2019. "Quality Culture of Manufacturing Enterprises: A Possible Way to Adaptation to Industry 4.0," Social Sciences, MDPI, vol. 8(4), pages 1-25, April.
    7. Daniel R. A. Schallmo & Christopher A. Williams, 2018. "History of Digital Transformation," SpringerBriefs in Business, in: Digital Transformation Now!, chapter 0, pages 3-8, Springer.
    8. Sascha Kraus & Paul Jones & Norbert Kailer & Alexandra Weinmann & Nuria Chaparro-Banegas & Norat Roig-Tierno, 2021. "Digital Transformation: An Overview of the Current State of the Art of Research," SAGE Open, , vol. 11(3), pages 21582440211, September.
    9. Cheng Ling Tan & Zhongkai Tei & Sook Fern Yeo & Kee-Hung Lai & Ajay Kumar & Leanne Chung, 2023. "Nexus among blockchain visibility, supply chain integration and supply chain performance in the digital transformation era," Post-Print hal-04325561, HAL.
    10. Vipulesh Shardeo & Anchal Patil & Ashish Dwivedi & Jitender Madaan, 2022. "Investigating the transport flexibility measures for freight transportation: a fuzzy best-worst method approach," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 43(2), pages 268-295.
    11. Mohammadi, Majid & Rezaei, Jafar, 2020. "Bayesian best-worst method: A probabilistic group decision making model," Omega, Elsevier, vol. 96(C).
    12. Zoppelletto, Alessia & Bullini Orlandi, Ludovico, 2022. "Cultural and digital collaboration infrastructures as sustainability enhancing factors: A configurational approach," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    13. Vipulesh Shardeo & Anchal Patil & Ashish Dwivedi & Jitender Madaan, 2023. "Modelling of critical success factors for blockchain technology adoption readiness in the context of agri-food supply chain," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 43(1), pages 80-102.
    14. Kraus, Sascha & Schiavone, Francesco & Pluzhnikova, Anna & Invernizzi, Anna Chiara, 2021. "Digital transformation in healthcare: Analyzing the current state-of-research," Journal of Business Research, Elsevier, vol. 123(C), pages 557-567.
    15. Grybauskas, Andrius & Stefanini, Alessandro & Ghobakhloo, Morteza, 2022. "Social sustainability in the age of digitalization: A systematic literature Review on the social implications of industry 4.0," Technology in Society, Elsevier, vol. 70(C).
    16. Manoj Dora & Ashwani Kumar & Sachin Kumar Mangla & Abhay Pant & Muhammad Mustafa Kamal, 2022. "Critical success factors influencing artificial intelligence adoption in food supply chains," International Journal of Production Research, Taylor & Francis Journals, vol. 60(14), pages 4621-4640, July.
    17. Bullen, Christine V. & Rockart, John F., 1981. "A primer on critical success factors," Working papers 1220-81. Report (Alfred P, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    18. M. Opazo-Basáez & F. Vendrell-Herrero & O.F. Bustinza & Y. Vaillant & Josip Marić, 2023. "Is Digital Transformation Equally Attractive to All Manufacturers? Contextualizing the Operational and Customer Benefits of Smart Manufacturing," Post-Print hal-04433897, HAL.
    19. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    20. Alexandre Moeuf & Samir Lamouri & Robert Pellerin & Simon Tamayo-Giraldo & Estefania Tobon-Valencia & Romain Eburdy, 2020. "Identification of critical success factors, risks and opportunities of Industry 4.0 in SMEs," International Journal of Production Research, Taylor & Francis Journals, vol. 58(5), pages 1384-1400, March.
    21. Kristina Höse & Afonso Amaral & Uwe Götze & Paulo Peças, 2023. "Manufacturing Flexibility through Industry 4.0 Technological Concepts—Impact and Assessment," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(2), pages 271-289, June.
    22. Kraus, Sascha & Durst, Susanne & Ferreira, João J. & Veiga, Pedro & Kailer, Norbert & Weinmann, Alexandra, 2022. "Digital transformation in business and management research: An overview of the current status quo," International Journal of Information Management, Elsevier, vol. 63(C).
    23. Tavana, Madjid & Mina, Hassan & Santos-Arteaga, Francisco J., 2023. "A general Best-Worst method considering interdependency with application to innovation and technology assessment at NASA," Journal of Business Research, Elsevier, vol. 154(C).
    24. Héctor Cancela & Fernando Tohmé & Pedro Piñeyro & Daniel Alejandro Rossit, 2023. "OR in digital production and logistics management," Annals of Operations Research, Springer, vol. 322(1), pages 1-4, March.
    25. Rezaei, Jafar, 2015. "Best-worst multi-criteria decision-making method," Omega, Elsevier, vol. 53(C), pages 49-57.
    26. Cristina Ciliberto & Katarzyna Szopik‐Depczyńska & Małgorzata Tarczyńska‐Łuniewska & Alessandro Ruggieri & Giuseppe Ioppolo, 2021. "Enabling the Circular Economy transition: a sustainable lean manufacturing recipe for Industry 4.0," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3255-3272, November.
    27. Tang, Christopher S. & Veelenturf, Lucas P., 2019. "The strategic role of logistics in the industry 4.0 era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 1-11.
    28. Ashish Dwivedi & Sanjoy Kumar Paul, 2022. "A framework for digital supply chains in the era of circular economy: Implications on environmental sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1249-1274, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Satirenjit Kaur Johl & Kashif Ali & Kunio Shirahada & Oyelakin Idris Oyewale, 2024. "Green servitization, circular economy, and sustainability a winning combination analysis through hybrid SEM‐ANN approach," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8978-8993, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xin Tan & Jinfang Jiao & Ming Jiang & Ming Chen & Wenpeng Wang & Yijun Sun, 2024. "Digital Policy, Green Innovation, and Digital-Intelligent Transformation of Companies," Sustainability, MDPI, vol. 16(16), pages 1-23, August.
    2. Koliousis, Ioannis & Al-Surmi, Abdulrahman & Bashiri, Mahdi, 2024. "Artificial intelligence and policy making; can small municipalities enable digital transformation?," International Journal of Production Economics, Elsevier, vol. 274(C).
    3. Gupta, Himanshu & Yadav, Avinash Kumar & Kusi-Sarpong, Simonov & Khan, Sharfuddin Ahmed & Sharma, Shashi Chandra, 2022. "Strategies to overcome barriers to innovative digitalisation technologies for supply chain logistics resilience during pandemic," Technology in Society, Elsevier, vol. 69(C).
    4. Ediansyah & Muhtosim Arief & Mohammad Hamsal & Sri Bramantoro Abdinagoro, 2022. "Interplay between Networking Capability and Hospital Performance in Indonesia’s Medical Tourism Sector," IJERPH, MDPI, vol. 20(1), pages 1-20, December.
    5. Evangelos Katsamakas, 2022. "Digital Transformation and Sustainable Business Models," Sustainability, MDPI, vol. 14(11), pages 1-5, May.
    6. Sarfaraz Hashemkhani Zolfani & Ramin Bazrafshan & Fatih Ecer & Çağlar Karamaşa, 2022. "The Suitability-Feasibility-Acceptability Strategy Integrated with Bayesian BWM-MARCOS Methods to Determine the Optimal Lithium Battery Plant Located in South America," Mathematics, MDPI, vol. 10(14), pages 1-18, July.
    7. Paul, Ananna & Shukla, Nagesh & Trianni, Andrea, 2023. "Modelling supply chain sustainability challenges in the food processing sector amid the COVID-19 outbreak," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    8. Dilupa Nakandala & Yung Po Tsang & Henry Lau & Carman Ka Man Lee, 2022. "An Industrial Blockchain-Based Multi-Criteria Decision Framework for Global Freight Management in Agricultural Supply Chains," Mathematics, MDPI, vol. 10(19), pages 1-23, September.
    9. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    10. Fatih Gurcan & Gizem Dilan Boztas & Gonca Gokce Menekse Dalveren & Mohammad Derawi, 2023. "Digital Transformation Strategies, Practices, and Trends: A Large-Scale Retrospective Study Based on Machine Learning," Sustainability, MDPI, vol. 15(9), pages 1-23, May.
    11. Nadeem, Kashif & Wong, Sut I. & Za, Stefano & Venditti, Michelina, 2024. "Digital transformation and industry 4.0 employees: Empirical evidence from top digital nations," Technology in Society, Elsevier, vol. 76(C).
    12. Corrente, Salvatore & Greco, Salvatore & Rezaei, Jafar, 2024. "Better decisions with less cognitive load: The Parsimonious BWM," Omega, Elsevier, vol. 126(C).
    13. Vieira, Fabiana C. & Ferreira, Fernando A.F. & Govindan, Kannan & Ferreira, Neuza C.M.Q.F. & Banaitis, Audrius, 2022. "Measuring urban digitalization using cognitive mapping and the best worst method (BWM)," Technology in Society, Elsevier, vol. 71(C).
    14. Du, Juntao & Shen, Zhiyang & Song, Malin & Zhang, Linda, 2023. "Nexus between digital transformation and energy technology innovation: An empirical test of A-share listed enterprises," Energy Economics, Elsevier, vol. 120(C).
    15. Jianhua Zhu & Julien S. Baker & Zhiting Song & Xiao-Guang Yue & Wenqi Li, 2023. "Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: an evolutionary game analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-18, December.
    16. Yangjun Ren & Botang Li, 2022. "Digital Transformation, Green Technology Innovation and Enterprise Financial Performance: Empirical Evidence from the Textual Analysis of the Annual Reports of Listed Renewable Energy Enterprises in C," Sustainability, MDPI, vol. 15(1), pages 1-15, December.
    17. Abderahman Rejeb & Karim Rejeb & John G. Keogh & Suhaiza Zailani, 2022. "Barriers to Blockchain Adoption in the Circular Economy: A Fuzzy Delphi and Best-Worst Approach," Sustainability, MDPI, vol. 14(6), pages 1-23, March.
    18. Zheng, Deyuan & Song, Hang & Zhao, Chunguang & Liu, Yujiao & Zhao, Wenhao, 2024. "Is it possible for semiconductor companies to reduce carbon emissions through digital transformation? Evidence from China," International Journal of Production Economics, Elsevier, vol. 272(C).
    19. Wu, Chih-Wen & Botella-Carrubi, Dolores & Blanco-González-Tejero, Cristina, 2024. "The empirical study of digital marketing strategy and performance in small and medium-sized enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    20. Basile, L.J. & Carbonara, N. & Panniello, U. & Pellegrino, R., 2024. "The role of big data analytics in improving the quality of healthcare services in the Italian context: The mediating role of risk management," Technovation, Elsevier, vol. 133(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:78:y:2024:i:c:s0160791x24001970. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.