A structural equation modeling framework for exploring the industry 5.0 and sustainable supply chain determinants

Abstract

Sustainable Supply Chain and Industry 5.0 are two important concepts reshaping how businesses operate in the modern world. Together, these two concepts drive the advancement of a highly sustainable and robust worldwide economy. Companies are now becoming more sustainable in supply chain management, using technologies like blockchain and co-bots to track the origin of goods, ensure ethical and sustainable sourcing, and work with humans safely and effectively. This study develops a theoretical model highlighting the determinants of Industry 5.0, Sustainable Supply Chain Practices, by combining theoretical frameworks from the manufacturing, supply chain, and information systems literature. The study's analytic sample comprises 342 responses collected from professionals working in the electronics industry's supply chain. Hypotheses were constructed employing deductive reasoning, leveraging insights gleaned from prior research. The study is conducted utilizing the Structural Equation Modeling (SEM) to substantiate the presumed connections among various constructs, namely, Industry 5.0 innovations, Sustainable Supply Chain Practices (SSCP), Sustainable Supply Chain Performance (SCP), and Supply Chain Risks (SCR). The Structural Equation Modeling analysis results show a direct impact of Industry 5.0 technologies through Sustainable Supply Chain Practices can enhance Supply Chain Performance and mitigate Supply Chain Risks. Combining the two paradigms can foster the development of new business models that prioritize sustainability and contribute to a more equitable and environmentally friendly economy that brings positive change for both businesses and society.