Investigating the implementation of Industry 5.0: An empirical study on manufacturing companies in Algeria

• A survey of manufacturing companies in Algeria on the implementation of Industry 5.0. • Manufacturing companies in Algeria are still far from adopting Industry 5.0. • Financial, awareness, and environmental issues hinder the adoption of Industry 5.0. In light of significant technological advancements and the imperative for a sustainable future, Industry 5.0 has emerged as a new industrial model that combines technological progress with sustainability objectives. This paper aims, firstly, to provide a brief background about the level of Industry 5.0 adoption and existing challenges in Algeria based on literature review and semi-directed interviews. In a second time, the paper aims to identify both the important factors that facilitate the implementation of Industry 5.0 in manufacturing companies in Algeria, as well as the obstacle that hinder its implementation. Using simple random sampling, the study adopted a quantitative approach based on 47 responses collected through a questionnaire survey that included 230 companies from the manufacturing sector in Algeria. The Partial Least Square Structural Equation Modelling (PLS-SEM) method was employed in the aim to test and estimate causal relationships between variables. This allows identifying the key factors that impact the implementation of Industry 5.0 in manufacturing companies. The results indicate that the implementation of industry 5.0 is still in its primary stage. Moreover, Social sustainability factors contribute to the implementation of Industry 5.0 in manufacturing companies in Algeria. Whereas, neither environmental sustainability and innovation factors make any contribution. On the other hand, technologies implementation obstacles and companies’ future strategy are the most prominent factors impeding the implementation of Industry 5.0 in manufacturing companies in Algeria.