Enabling Sustainable Diffusion in Supply Chains Through Industry 5.0: An Impact Analysis of Key Enablers for SMEs in Emerging Economies

Industry 5.0 (I5.0) builds upon Industry 4.0 by emphasizing the role of workers in production processes and prioritizing socio-economic-environmental sustainability. It has been shown that I5.0 can enhance sustainability within supply chains (SCs). However, companies in emerging economies, especially small and medium-sized manufacturing enterprises (SMEs), which are crucial to developing economies, face challenges in implementing these concepts. These SMEs are in the early stages of adopting I5.0 to foster sustainability in their SCs and require urgent identification of key I5.0 enablers. Unfortunately, the current literature lacks research on this topic specifically within the context of SMEs in emerging economies. To bridge this gap, this study identifies the enablers of I5.0 that promote sustainability diffusion in SCs, using China’s SME manufacturing sector as a case study. The integrated framework for applying multiple criteria decision-making (MCDM) techniques in this study aims to assist decision-makers in evaluating different options and making optimal choices in a systematic and structured manner when faced with complex situations. The study employs the fuzzy Delphi method (FDM) to identify 15 key I5.0 enablers and categorize them into three clusters. Grey-DEMATEL is subsequently utilized to determine the causal relationships, rank the importance of the enablers, and construct an interrelationship diagram. This study found that ‘availability and functionality of resources’; ‘top management support, active participation, and effective governance’; ‘support from government, regulators, and financial resources’; and ‘introduction of safer and more efficient robotic systems for human–robot interaction and collaboration’ serve as the primary means of resolving issues. Overall, this study helps managers, practitioners, and policymakers interested in I5.0 applications to promote sustainability in the supply chain.