Strategic Leadership 5.0: Reality or Illusion?

Abstract This study initiates an exploration into strategic leadership within the context of the emerging Industry 5.0 (I5.0) era, integrating strategic leadership theory with the principles of Industry 5.0. Unlike Industry 4.0, which primarily focuses on managing technological capabilities, Industry 5.0 seeks to fundamentally transform business operations, societal consumption patterns and environmental protection by emphasizing a sustainable, human-centric and resilient industrial future. This shift is expected to have a significant impact on organisational performance. This conceptual study investigates how strategic leadership might adapt in this new era and explores the potential implications for organisational performance by mapping causal links between leadership and previous industrial epochs. It also identifies areas for future empirical research. Considering the diverse impact of factors such as inspirational vision, cognitive decision-making, strategic management and relationship building and maintenance, the study examines the potential effects of Strategic Leadership 5.0. It offers insights into decision-making and design thinking, proposes research directions and outlines a roadmap for developing Strategic Leadership 5.0 models aimed at enhancing organisational performance, with practical, theoretical, and implementable implications for policy.