Sustainable value network reformationThe transition from neoliberal capitalism economic models towardstakeholder primacy under Industry 5.0 involves de-risking value net-works and building value chains that are more resilient, circular, andenvironmentally sustainable (Carraresi & Bröring, 2021). Sustainablevalue network reformation (SVR) entails developing digital supply net-works that are more modular, decentralized, and adaptive(Maddikunta et al., 2022). Under SVR, modularization involves addres-sing the ever-increasing complexity of contemporary supply chains bytransforming their linear designs into more circular and dynamicdesigns (Tseng et al., 2022). Modularization uses modern technologiesto digitalize supply chain notes (e.g., production facilities or distribu-tion channels) and transfer them into reconfigurable modules todevelop interconnected dynamic supply networks that create newbusiness models and profit tools (Ghobakhloo, Iranmanesh,et al., 2021). Decentralization allows value network modules to oper-ate autonomously and make decentralized decisions. The adaptabilityaspect of SVR entails leveraging modularity and decentralization capa-bilities to adjust the value network's design to ongoing or imminentstructural shifts in the markets (Toktas¸-Palut, 2022). SVR is indispens-able to Industry 5.0 objectives as its underlying mechanisms facilitatesupply chain agility, product adaptation, renewable integration, circu-lar production, and sustainable business models (Zhang, Wang,et al., 2021)

Sustainable value network reformationThe transition from neoliberal capitalism economic models towardstakeholder primacy under Industry 5.0 involves de-risking value net-works and building value chains that are more resilient, circular, andenvironmentally sustainable (Carraresi & Bröring, 2021). Sustainablevalue network reformation (SVR) entails developing digital supply net-works that are more modular, decentralized, and adaptive(Maddikunta et al., 2022). Under SVR, modularization involves addres-sing the ever-increasing complexity of contemporary supply chains bytransforming their linear designs into more circular and dynamicdesigns (Tseng et al., 2022). Modularization uses modern technologiesto digitalize supply chain notes (e.g., production facilities or distribu-tion channels) and transfer them into reconfigurable modules todevelop interconnected dynamic supply networks that create newbusiness models and profit tools (Ghobakhloo, Iranmanesh,et al., 2021). Decentralization allows value network modules to oper-ate autonomously and make decentralized decisions. The adaptabilityaspect of SVR entails leveraging modularity and decentralization capa-bilities to adjust the value network's design to ongoing or imminentstructural shifts in the markets (Toktas¸-Palut, 2022). SVR is indispens-able to Industry 5.0 objectives as its underlying mechanisms facilitatesupply chain agility, product adaptation, renewable integration, circu-lar production, and sustainable business models (Zhang, Wang,et al., 2021)

3.1.7 | Sustainability orientation and thinkingThis enabler concerns the capacity of individuals, corporations, supplychains, and stakeholders to value environmental protection and socie-tal development (Carayannis & Morawska-Jancelewicz, 2022). Sus-tainability orientation and thinking (SUO) can ensure that Industry 5.0actors have the capacity and willingness to engage with economic dis-ruptions and prevailing socio-environmental challenges (Saniuket al., 2022). For this to happen, Industry 5.0 actors should understandthe complex interactions among cultural, political, economic, societal,and environmental ecosystems, allowing them to predict the impactof their decisions on sustainability and develop a sense of responsibil-ity for the future generation's well-being (Renda et al., 2022). Thescope of SUO drastically changes according to the particularity ofIndustry 5.0 actors. For example, SUO for smart consumers may1480 GHOBAKHLOO ET AL .15353966, 2023, 3, Downloaded from https://onlinelibrary.wiley.com/doi/10.1002/csr.2431 by Readcube (Labtiva Inc.), Wiley Online Library on [19/01/2024]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons Licenseinvolve developing more sustainable consumption behavior such aspaying more for green products, preventing waste, or prolongingproducts' life (Torres-Ruiz et al., 2018). For corporations, SUO canentail developing the core competencies for integrating cleaner tech-nologies, implementing corporate social responsibility, or creatingshared value to ensure competitiveness while positively impacting theenvironment and society (Winans et al., 2021). Overall, the compre-hensive development of SUO among Industry 5.0 actors is crucial tomany sustainability micro-objectives of this phenomenon, such assupply chain resilience, renewable integration, product circularity,employee well-being, and waste reduction

3.1.5 | Stakeholder collaborationThe scope of Industry 5.0 expands beyond the digital transformationof individual corporations (Xu et al., 2021). Industry 5.0 requires thetransformation of business processes, reconfiguration of supplychains, circularization of consumption modes, and synchronization ofthe public sector (Elangovan, 2022). Indeed, Industry 5.0 stakeholdersneed to align with the systemic transformation agenda of Industry 5.0and collaboratively develop the culture of social dialog (Brequeet al., 2021). Therefore, stakeholder collaboration (STC) involvesenabling processes that allow Industry 5.0 stakeholders, including cor-porations, government, communities, and labor unions, to transpar-ently communicate their needs, expectations, and conflicts of interestto collaboratively shape the direction of industrial transformation tomeet Industry 5.0 core sustainable development objectives (Rendaet al., 2022). Accordingly, STC involves Industry 5.0 stakeholdersworking together to design and implement the necessary legal frame-works, industry policies, innovation, and job creation & upskilling/reskilling initiatives (Saniuk et al., 2022; Sindhwani et al., 2022).3.1.6 | Stakeholder integrationHorizontal and vertical integrations are familiar terms from the Indus-try 4.0 framework (Ng et al., 2022). Vertical integration denotes con-necting and integrating all micro-components of an organization,establishing seamless data interchange across various business units,from warehousing to smart production systems (Tabim et al., 2021).While the enabling role of vertical integration remains unchanged forIndustry 5.0, the scope and implication of horizontal integrationextend to stakeholder integration under this phenomenon (Alexaet al., 2022). Contrary to Industry 4.0 that focuses on horizontal inte-gration of all supply chain modules, Industry 5.0 entails the horizontalintegration of the underlying smart components and stakeholders fora given value network, including smart business units (e.g., adaptivesmart factories), customers, distributors, suppliers, technology pro-viders, government bodies, local communities, and labor unions(Akundi et al., 2022; Renda et al., 2022). Stakeholder integration (STI)is critical to achieving Industry 5.0 sustainablity values as it promotesdata transparency, environmental accountability, open innovation, skilldevelopment, infrastructural development, and systemic green trans-formation of Industries (Breque et al., 2021; Frederico, 2021)

Actions and approaches for enabling Industry 5.0-drivensustainable industrial transformation: A strategy roadmapMorteza Ghobakhloo 1,2 | Mohammad Iranmanesh 3 | Manuel E. Morales 1 |Mehrbakhsh Nilashi 4 | Azlan Amran 51 School of Economics and Business, KaunasUniversity of Technology, Kaunas, Lithuania2 Division of Industrial Engineering andManagement, Uppsala University, Uppsala,Sweden3 School of Business and Law, Edith CowanUniversity, Joondalup, Western Australia,Australia4 UCSI Graduate Business School, UCSIUniversity, Kuala Lumpur, Malaysia5 Graduate School of Business, Universiti SainsMalaysia, Penang, MalaysiaCorrespondenceMorteza Ghobakhloo, School of Economicsand Business, Kaunas University ofTechnology, Kaunas, Lithuania.Email: [email protected];[email protected] informationHorizon 2020 Research and InnovationProgramme, Grant/Award Number: 810318AbstractAlthough Industry 4.0 was believed to promote sustainable development, it hasignored or misunderstood many prevailing sustainability concerns, which led to theemergence of the Industry 5.0 agenda. While the desirable sustainability values ofIndustry 5.0 are widely acknowledged, the knowledge of how this agenda can deliversustainable transformation is lacking. The present study addresses this knowledgegap, explaining how Industry 5.0 transformation should be managed to facilitatesustainable development. Therefore, this study strives to model the underlyingmechanism for enabling such transformation. The study conducted a content-centricreview of the literature and identified 11 actions and approaches that serve asenablers of Industry 5.0 transformation. The study further conducted the interpretivestructural modeling and structured the enablers as an interpretive model explainingsteps needed for enabling Industry 5.0. Finally, the study developed the strategyroadmap for enabling Industry 5.0 transformation and sustainable development.Results emphasized stakeholder salience, highlighting the enabling role of stake-holder integration and collaboration in Industry 5.0 transformation. Proactivegovernmental support is the most driving enabler of Industry 5.0, whereas eco-innovation and sustainable value network reformation are among the most complexand hard-to-develop enablers. Results offer several implications for policymakers andpractitioners, explaining the functionality of each approach and strategy necessaryfor Industry 5.0 transformation. The roadmap determines the sequential relationshipsamong these approaches and strategies and identifies their optimal developmentsequence for enabling Industry 5.0 transformation synergistically. Results furtheridentify the codependences among the Industry 5.0 transition enablers and highlighttheir interactions and complementarities.K E Y W O R D Sdigital technology, environmental sustainability, human-centricity, Industry 5.0, resilience,sustainable industrial transformationReceived: 17 August 2022 Revised: 8 November 2022 Accepted: 27 November 2022DOI: 10.1002/csr.2431This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in anymedium, provided the original work is properly cited and is not used for commercial purposes.© 2022 The Authors. Corporate Social Responsibility and Environmental Management published by ERP Environment and John Wiley & Sons Ltd.Corp Soc Responsib Environ Manag. 2023;30:1473–1494. wileyonlinelibrary.com/journal/csr 1473

The study showed that contrary to Industry 4.0, Industry5.0 appears to be pulled by socio-environmental valuesand needs. Industry 5.0 is the logical continuation ofIndustry 4.0 that draws on commercially mature digitaland operations technologies and emerging disruptivetechnologies such as CAI and adaptive robots to promotehuman-centricity, resilience, and sustainable develop-ment. Industry 5.0 is expected to address the pressingsustainable development concerns by introducing circu-larity into industrial operations, enhancing synergybetween autonomous machines and humans, and regu-lating the pace and quality of digital industrialtransformation.The findings reveal that Industry 4.0 and Industry 5.0share similarities but have notable differences. For exam-ple, both frameworks emphasize horizontal integration,which involves integrating different parts of the produc-tion process across the manufacturing supply chains toimprove productivity and reduce costs. Nonetheless, hor-izontal integration under Industry 5.0 goes beyond justintegrating various parts of the manufacturing value net-work. It integrates all stakeholders, including technologyproviders, labor unions, and government regulators, tocreate a seamless and collaborative network to governtechnological advancement. Another significant differ-ence between the two frameworks concerns the techno-logical focus. Although Industry 4.0 was pushed byemerging technologies such as the internet of thingsand cloud computing, these technologies are now com-monplace and considered standard in Industry 5.0.Instead, Industry 5.0 is associated with the emergence ofcognitive technologies that support human-machinesymbioses, such as artificial general intelligence, cognitivecyber-physical systems, and adaptive robots. These tech-nologies enable greater collaboration between humansand machines, and they have the potential to revolutio-nize the way we work and live. Overall, the findings implythat the critical difference between Industry 4.0 andIndustry 5.0 lies in the scope and nature of integrationand the technological properties that drive innovation442 M. GHOBAKHLOO ET AL.and economic values in each framework. While Industry4.0 is merely focused on economic performance, Industry5.0 seeks to balance triple bottom-line considerations byharnessing technology-driven productivity to enhancesocietal values.