THE CO-EVOLUTION OF INDUSTRY 4.0 AND INDUSTRY 5.0: A COMPREHENSIVE EMPIRICAL STUDY ON SUSTAINABILITY AND QUALITY PERFORMANCE IN MANUFACTURING

This study empirically examines the relationship between the paradigms of Industry 4.0 and Industry 5.0, along with their combined impact on sustainability and quality performance in manufacturing organizations. Industry 4.0, defined by cyber-physical systems, IoT, AI, and big data analytics, enhances operational efficiency and product quality through interconnected, autonomous production environments. However, its technology- centric approach has been criticized for not adequately addressing human and social sustainability aspects. Industry 5.0 complements this by focusing on human-centricity, ethical governance, and resilience, promoting collaboration between humans and intelligent machines to achieve sustainable manufacturing excellence. A cross-sectional survey of 248 manufacturing firms across various sectors employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to test a conceptual framework integrating Industry 4.0 and Industry 5.0 practices. The results indicate that Industry 4.0 practices significantly enhance sustainability and quality performance and strongly predict the adoption of Industry 5.0. Industry 5.0 practices have an even stronger direct effect on these outcomes and partially mediate the relationship between Industry 4.0 and performance. Interaction effects confirm a synergistic coexistence, with combined adoption leading to superior sustainability and quality performance compared to Industry 4.0 alone. The findings position Industry 5.0 as an evolutionary extension of Industry 4.0, enriching the technological foundation with human-centric and ethical dimensions essential for long-term sustainability and resilience. The integrative framework underscores the necessity of balancing technological innovation with human and social considerations to achieve holistic manufacturing excellence. Practically, the study offers strategic insights for firms aiming to enhance sustainable quality performance through phased, synergistic integration of Industry 4.0 and Industry 5.0 practices, providing a robust empirical basis for policy and industry frameworks supporting this co-evolution.