Modeling the Key Enablers of Industry 5.0 and Circular Supply Chain: A Way‐Forward Towards Sustainable Development

ABSTRACT The circular supply chain (CSC) and industry 5.0 (I5.0) paradigms transform the linear business models into circular models for achieving sustainable development goals. These paradigms can be enabling tools for creating value addition in products, processes and partners via intelligent manufacturing in the supply chain. In this perspective, this study aims to explore potential enablers considering I5.0 and CSC concepts from the recent literature review and in discussion with technical experts from industries. In this study, a holistic conceptual framework of enablers of I5.0 and CSC is developed using natural resource‐based view (NRBV) and institutional theory in achieving sustainable outcomes. The three‐phase process for modeling of enablers based on fuzzy Delphi approach, best‐worst method, and sensitivity analysis was used to prioritize the enablers in the textile manufacturing sector of Pakistan. Initially, 17 enablers were identified from the extensive review of literature which was validated by a panel of experts. The output of fuzzy Delphi method categorized nine key enablers out of 17 for further analysis. The best‐worst method is employed to compute the weights of each enabler based on the experts' judgment. The findings reveal that “Top management mind‐set towards I5.0 and CSC adoption,” “Government special incentives to the CSC‐based industry,” and “Awareness of I5.0 and CSC concepts through academia‐industry forum” found to be highly prioritized enablers. Theoretically, this study bridges the gap to apply the NRBV, institutional theory, and fuzzy set theory to examine the enablers and provide novel insights into the sustainable development transition in an emerging economy context. Practically, it also enables top management, supply chain professionals, and government officials to formulate policies to achieve sustainable development goals (SDGs).