Unveiling barriers to Industry 5.0 adoption in supply chains: a DEMATEL approach

Laddha, Seema; Agrawal, Anguja

doi:10.1108/RAUSP-08-2023-0146

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Research paper • RAUSP 59 (2) • Apr-Jun 2024 • https://doi.org/10.1108/RAUSP-08-2023-0146 copy

Unveiling barriers to Industry 5.0 adoption in supply chains: a DEMATEL approach

Authorship SCIMAGO INSTITUTIONS RANKINGS

Purpose

The objective of this research is to investigate the barriers impacting the integration of Industry 5.0 (I5.0) in supply chain sustainability. By understanding these challenges, this study aims to provide valuable insights that can guide organizations in successfully implementing the transformative potential of I5.0. The ultimate aim is to improve operational efficiency and advocate for sustainable practices within supply chains.

Design/methodology/approach

Research has used industry expert interviews, a comprehensive literature review and the decision-making trial and evaluation laboratory approach for analysis. Industry expert interviews serve to capture first-hand insights from professionals well versed in the field, providing practical perspectives on the barriers to I5.0 adoption.

Findings

This study identifies technological challenges, organizational barriers, regulatory impediments and economic constraints as pivotal factors inhibiting the widespread adoption of I5.0 in supply chain sustainability.

Research limitations/implications

This research serves as a foundation for future investigations into overcoming barriers to I5.0 adoption, guiding scholars and practitioners in refining strategies for successful implementation.

Practical implications

The findings offer practical insights for organizations aiming to adopt I5.0, informing decision-makers on key challenges and facilitating the development of targeted strategies to overcome them.

Social implications

The social implications lie in fostering sustainable business practices through the adoption of I5.0, contributing to environmental responsibility and societal well-being.

Originality/value

This research contributes original insights from practitioners, policymakers and researchers in navigating the complex landscape of I5.0 adoption, ensuring meaningful contributions to both academia and industry.

Barriers; Organizational barriers; Industry 5.0; Regulatory barriers; DEMATEL; Sustainable supply chain practices; Technological barriers; Economic barriers

Barriers for adoption of I5.0 in SCS	References
Management support/lack of active involvement of the senior managers	Dwivedi, Agrawal, Jha, Mathiyazhagan (2023)Dwivedi, A., Agrawal, D., Jha, A., & Mathiyazhagan, K. (2023). Studying the interactions among Industry 5.0 and circular supply chain: Towards attaining sustainable development. Computers & Industrial Engineering, 176, 108927. and Yadav et al., (2020)Yadav, G., Luthra, S., Huisingh, D., Mangla, S. K., Narkhede, B. E., & Liu, Y. (2020). Development of a lean manufacturing framework to enhance its adoption within manufacturing companies in developing economies. Journal of Cleaner Production, 245, 118726, doi: 10.1016/j.jclepro.2019.118726. https://doi.org/10.1016/j.jclepro.2019.1...
Resistance to change and lack of digital readiness	Oksuz (2020)Oksuz, M. F. (2020). Industry 5.0: New challenges in managing organizational change. Procedia Computer Science, 176, 777–784.
Organization readiness and expectation in transformation	Dwivedi, Agrawal, Jha, Mathiyazhagan (2023)Dwivedi, A., Agrawal, D., Jha, A., & Mathiyazhagan, K. (2023). Studying the interactions among Industry 5.0 and circular supply chain: Towards attaining sustainable development. Computers & Industrial Engineering, 176, 108927.
Attitudinal transformation of consumers
Concern for environmental protection and sustainability	Chauhan et al. (2021aChauhan, A. S., Kumari, S., & Kumar, A. (2021a). Industry 5.0 adoption for sustainable supply chain management: A fuzzy-AHP approach. Journal of Cleaner Production, 291, 125620., 2021bChauhan, S., Saini, S. P., & Chauhan, A. (2021b). Industry 5.0: The future of smart manufacturing. International Journal of Mechanical and Production Engineering Research and Development, 11(2), 487–496.); Moktadir, Rahim, Habib, and Shah (2018)Moktadir, M. A., Rahim, M. A., Habib, M. A., & Shah, N. N. (2018). Industry 5.0: A human-centric approach to Industry 4.0. Journal of Manufacturing Systems, 48, 144–156.. Raj et al.
Insufficient IT infrastructure and connectivity	Jing et al. (2020aJing, B., Cai, H., Huang, X., & Li, L. (2020a). Industry 4.0 and supply chain management: A comparative analysis. International Journal of Production Research, 58(7), 2063–2078., 2020bJing, X. Y., Shen, W. Z., Xia, Y. B., & Yuan, J. (2020b). Big data analytics in Industry 5.0 and industrial internet of things: A comprehensive literature review. Journal of Cleaner Production, 244, 118814.)
Lack of reliable information and technological	Kaur, Singh, and Sandhu (2020)Kaur, H., Singh, M., & Sandhu, K. (2020). Industry 5.0: A review of challenges, opportunities and the way forward. Journal of Industrial Engineering International, 16(4), 707–727.
Lack of in-house talent and skilled workers
Lack of standardized protocols and interoperability: Incompatibility between different systems and technologies hinders seamless integration and communication within the supply chain	Hsieh et al. (2020aHsieh, C. H., Lin, C. L., & Yu, P. C. (2020a). Industry 4.0 and smart manufacturing: A review. Proceedings of the International Conference on Industrial Engineering and Operations Management, 2019, 1492–1500.)
Competency skills for collaboration among humans and machines	Adel (2022aAdel, A. (2022a). A conceptual framework to improve cyber forensic administration in Industry 5.0: Qualitative study approach. Forensic Sciences, 2(1), 111–129, doi: 10.3390/forensicsci2010009. https://doi.org/10.3390/forensicsci20100... , 2022bAdel, A. (2022b). Industry 5.0: A new era of human-machine collaboration. IEEE Potentials, 41(1), 8–11., 2022cAdel, A. (2022c). Future of Industry 5.0 in society: Human-centric solutions, challenges and prospective research areas. Journal of Cloud Computing, 11(1), 40, doi: 10.1186/s13677-022-00314-5. https://doi.org/10.1186/s13677-022-00314... )
Inadequate knowledge about disruptive technologies	Majumdar, Kumar, and Kumar (2021)Majumdar, A., Kumar, A., & Kumar, P. (2021). Industry 5.0: A review of challenges and opportunities. Smart technologies and innovation for a sustainable future (299–313), Singapore: Springer. and Stentoft et al. (2020)
Lack of organizational capabilities and commitment	Aslam et al. (2020)Aslam, W., Khan, Z., Khan, A., & Khan, I. (2020). Industry 5.0: A step towards sustainable development and its impact on supply chain management. Journal of Cleaner Production, 253, 119944. and Yadav et al. (2020)Yadav, G., Luthra, S., Huisingh, D., Mangla, S. K., Narkhede, B. E., & Liu, Y. (2020). Development of a lean manufacturing framework to enhance its adoption within manufacturing companies in developing economies. Journal of Cleaner Production, 245, 118726, doi: 10.1016/j.jclepro.2019.118726. https://doi.org/10.1016/j.jclepro.2019.1...
Insufficient investment	Kumar, Jain, and Kumari (2021)Kumar, A., Jain, V., & Kumari, M. (2021). Industry 5.0: A paradigm shift in manufacturing. Industry 5.0 (1–18), Singapore: Springer.
Risk in data ownership and data security	Singh et al. (2020)Singh, R. K., El-Nasr, M. S., & Gupta, S. (2020). Industry 5.0: An insight. International Journal of Production Research, 58(3), 797–803.
Market uncertainty	Luthra and Mangla (2018)
Cybersecurity and data privacy concerns	Huang et al. (2021aHuang, S. H., Chu, P. Y., Ho, Y. T., & Lee, C.J. (2021a). A hybrid data-driven modeling approach for predicting adoption of Industry 5.0. International Journal of Production Economics, 236, 108272., 2021bHuang, Q., Lin, Y., Zhang, L., & Zhang, L. (2021b). Supply chain cybersecurity under Industry 4.0: A systematic review. International Journal of Information Management, 61.)
Difficulties in the data management system	Zheng, Yuan, and Huang (2018)Zheng, X., Yuan, X., & Huang, H. (2018). Research on supply chain management in the era of Industry 4.0. Advances in Mechanical Engineering, 10(9), 168781.
Disruptions to employment	(Frey & Osborne, 2017Frey, C. B., & Osborne, M. A. (2017). The future of employment: How susceptible are jobs to computerisation? Technological Forecasting and Social Change, 114, 254–280, doi: 10.1016/j.techfore.2016.08.019. https://doi.org/10.1016/j.techfore.2016.... ; Moktadir et al., 2018Moktadir, M. A., Rahim, M. A., Habib, M. A., & Shah, N. N. (2018). Industry 5.0: A human-centric approach to Industry 4.0. Journal of Manufacturing Systems, 48, 144–156.)
Implementing I5.0 technologies often requires significant investments in hardware, software and workforce training, making it a barrier for organizations with limited financial resources	Rame et al. (2023)Rame, R., Purwanto, P., & Sudarno, S. (2023). Global context of industry 5.0: Current trends and challenges in Indonesia. Jurnal Riset Teknologi Pencegahan Pencemaran Industri, 14, 21–32.
Inadequate regulatory frameworks and policies addressing the adoption of I5.0 and its impact on supply chain sustainability	Singh et al. (2020)Singh, R. K., El-Nasr, M. S., & Gupta, S. (2020). Industry 5.0: An insight. International Journal of Production Research, 58(3), 797–803.
Lack of financial support, funding like taxcuts, short loans, etc. from investors and the Government	Karmaker, Ashraf, and Matin (2021)Karmaker, C. L., Ashraf, M. A., & Matin, M. A. (2021). An overview of Industry 5.0: Challenges, opportunities and the way forward. Journal of Cleaner Production, 311, 127766.
Lack of skilled workforce proficient in emerging technologies	Adel (2022aAdel, A. (2022a). A conceptual framework to improve cyber forensic administration in Industry 5.0: Qualitative study approach. Forensic Sciences, 2(1), 111–129, doi: 10.3390/forensicsci2010009. https://doi.org/10.3390/forensicsci20100... , 2022bAdel, A. (2022b). Industry 5.0: A new era of human-machine collaboration. IEEE Potentials, 41(1), 8–11., 2022cAdel, A. (2022c). Future of Industry 5.0 in society: Human-centric solutions, challenges and prospective research areas. Journal of Cloud Computing, 11(1), 40, doi: 10.1186/s13677-022-00314-5. https://doi.org/10.1186/s13677-022-00314... )
Education and skills, working environment, the relationship between productivity and wages, technologies and human redundancies, optimum products, sustainability, governance and ethics	Frederico (2021)Frederico, G. F. (2021). Challenges and opportunities in Industry 5.0: A systematic review. Journal of Manufacturing Systems, 60, 250–266.; 5(3):49
Coordination and leadership support, digital infrastructure, strategic alignment and people skills and training
Psychological issues, workers’ safety, social, ethical, learning and legal and regulatory issues
Technological to a balanced human-centric perspective
Security is a challenge for I5.0 as it is critical to establish trust in ecosystems

Code	Barriers
B1	Implementation cost
B2	Lack of support from the Government
B3	Inadequate knowledge of disruptive technologies
B4	Lack of reliable information and technological
B5	Management support
B6	Lack of in-house talent and skilled workers
B7	Risk in data ownership and data security
B8	Lack of organizational capabilities and commitment
B9	Market uncertainty
B10	Security concern

Barriers	B1	B2	B3	B4	B5	B6	B7	B8	B9	B10
B1	0	2.5	3	2	4	1.5	1	2.5	2	1
B2	3	0	2	2.5	2	3.5	1.5	3	4	3.5
B3	3	1.5	0	3.5	2.5	3	3	3	1	4
B4	4	2.5	4	0	2.5	2.5	4	2.5	1	3
B5	2	1.5	3	4	0	3.5	1	2.5	3	2
B6	3	1	3	4	4	0	3	2	2	1
B7	3	3	4	1	2.5	1	0	3	3	4
B8	1	3.5	2	2.5	3	3.5	4	0	2	1
B9	3	2	1	2.5	4	2	3	2.5	0	1
B10	2	4	3	2	3	2	4	2	2	0

Barriers	B1	B2	B3	B4	B5	B6	B7	B8	B9	B10
B1	0.0000	0.0962	0.1154	0.0769	0.1538	0.0577	0.0385	0.0962	0.0769	0.0385
B2	0.1154	0.0000	0.0769	0.0962	0.0769	0.1346	0.0577	0.1154	0.1538	0.1346
B3	0.1154	0.0577	0.0000	0.1346	0.0962	0.1154	0.1154	0.1154	0.0385	0.1538
B4	0.1538	0.0962	0.1538	0.0000	0.0962	0.0962	0.1538	0.0962	0.0385	0.1154
B5	0.0769	0.0577	0.1154	0.1538	0.0000	0.1346	0.0385	0.0962	0.1154	0.0769
B6	0.1154	0.0385	0.1154	0.1538	0.1538	0.0000	0.1154	0.0769	0.0769	0.0385
B7	0.1154	0.1154	0.1538	0.0385	0.0962	0.0385	0.0000	0.1154	0.1154	0.1538
B8	0.0385	0.1346	0.0769	0.0962	0.1154	0.1346	0.1538	0.0000	0.0769	0.0385
B9	0.1154	0.0769	0.0385	0.0962	0.1538	0.0769	0.1154	0.0962	0.0000	0.0385
B10	0.0769	0.1538	0.1154	0.0769	0.1154	0.0769	0.1538	0.0769	0.0769	0.0000

Barriers	B1	B2	B3	B4	B5	B6	B7	B8	B9	B10	D
B1	0.0807	0.1039	0.1247	0.0831	0.1663	0.0624	0.0416	0.1039	0.0831	0.0416	0.8913
B2	0.2158	0.0208	0.1018	0.1128	0.1101	0.1471	0.0660	0.1361	0.1704	0.1429	1.2239
B3	0.2134	0.0782	0.0246	0.1510	0.1290	0.1277	0.1236	0.1359	0.0549	0.1621	1.2004
B4	0.2550	0.1207	0.1833	0.0196	0.1354	0.1109	0.1637	0.1207	0.0581	0.1252	1.2924
B5	0.1767	0.0747	0.1358	0.1674	0.0272	0.1448	0.0453	0.1131	0.1290	0.0837	1.0976
B6	0.2126	0.0589	0.1399	0.1702	0.1866	0.0123	0.1236	0.0974	0.0933	0.0466	1.1413
B7	0.2094	0.1355	0.1780	0.0546	0.1284	0.0505	0.0081	0.1355	0.1315	0.1619	1.1934
B8	0.1423	0.1483	0.0933	0.1071	0.1373	0.1428	0.1593	0.0137	0.0879	0.0439	1.0759
B9	0.1990	0.0961	0.0614	0.1115	0.1845	0.0884	0.1230	0.1153	0.0153	0.0461	1.0406
B10	0.1807	0.1712	0.1362	0.0908	0.1432	0.0873	0.1608	0.0943	0.0908	0.0069	1.1623
R	1.8857	1.0082	1.1791	1.0681	1.3478	0.9742	1.0148	1.0659	0.9143	0.8610

Barriers	R	D	D + R	Rank	D − R	Cause/effect
B1	1.8857	0.8913	2.777	1	−0.994	Effect
B2	1.0082	1.2239	2.232	5	0.216	Cause
B3	1.1791	1.2004	2.380	3	0.021	Cause
B4	1.0681	1.2924	2.361	4	0.224	Cause
B5	1.3478	1.0976	2.445	2	−0.250	Effect
B6	0.9742	1.1413	2.116	8	0.167	Cause
B7	1.0148	1.1934	2.208	6	0.179	Cause
B8	1.0659	1.0759	2.142	7	0.010	Cause
B9	0.9143	1.0406	1.955	10	0.126	Cause
B10	0.8610	1.1623	2.023	9	0.301	Cause

Universidade de São Paulo Avenida Professor Luciano Gualberto, 908, sala F184, CEP: 05508-900, São Paulo , SP - Brasil, Telefone: (11) 3818-4002 - São Paulo - SP - Brazil
E-mail: rausp@usp.br

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[1] Seema Laddha can be contacted at: seemaladdha3@gmail.com

Barriers	B1	B2	B3	B4	B5	B6	B7	B8	B9	B10
B1	0	2.5	3	2	4	1.5	1	2.5	2	1
B2	3	0	2	2.5	2	3.5	1.5	3	4	3.5
B3	3	1.5	0	3.5	2.5	3	3	3	1	4
B4	4	2.5	4	0	2.5	2.5	4	2.5	1	3
B5	2	1.5	3	4	0	3.5	1	2.5	3	2
B6	3	1	3	4	4	0	3	2	2	1
B7	3	3	4	1	2.5	1	0	3	3	4
B8	1	3.5	2	2.5	3	3.5	4	0	2	1
B9	3	2	1	2.5	4	2	3	2.5	0	1
B10	2	4	3	2	3	2	4	2	2	0

Barriers	B1	B2	B3	B4	B5	B6	B7	B8	B9	B10
B1	0	2.5	3	2	4	1.5	1	2.5	2	1
B2	3	0	2	2.5	2	3.5	1.5	3	4	3.5
B3	3	1.5	0	3.5	2.5	3	3	3	1	4
B4	4	2.5	4	0	2.5	2.5	4	2.5	1	3
B5	2	1.5	3	4	0	3.5	1	2.5	3	2
B6	3	1	3	4	4	0	3	2	2	1
B7	3	3	4	1	2.5	1	0	3	3	4
B8	1	3.5	2	2.5	3	3.5	4	0	2	1
B9	3	2	1	2.5	4	2	3	2.5	0	1
B10	2	4	3	2	3	2	4	2	2	0

Barriers	B1	B2	B3	B4	B5	B6	B7	B8	B9	B10
B1	0	2.5	3	2	4	1.5	1	2.5	2	1
B2	3	0	2	2.5	2	3.5	1.5	3	4	3.5
B3	3	1.5	0	3.5	2.5	3	3	3	1	4
B4	4	2.5	4	0	2.5	2.5	4	2.5	1	3
B5	2	1.5	3	4	0	3.5	1	2.5	3	2
B6	3	1	3	4	4	0	3	2	2	1
B7	3	3	4	1	2.5	1	0	3	3	4
B8	1	3.5	2	2.5	3	3.5	4	0	2	1
B9	3	2	1	2.5	4	2	3	2.5	0	1
B10	2	4	3	2	3	2	4	2	2	0