Organizational Factors influencing the Industry 5.0 adoption in Small and Medium Enterprises

Small and Medium Enterprises (SMEs) must improve their organizational readiness to effectively implement Industry 5.0 (I5.0) technologies. However, there is limited guidance on which organizational factors are critical for this transition. This study investigates how strategic, technical, and social factors influence the adoption of I5.0 technologies in SMEs. This research integrates the Natural Resource-Based View (NRBV) and the Dynamic Capabilities Theory (DCT). A survey of 80 companies was conducted to assess the influence of various organizational factors on I5.0 adoption. The companies were grouped into clusters based on organizational readiness, using K-means clustering and Analysis of Variance. Ordinal Logistic Regression was also employed to identify significant organizational predictors of I5.0 adoption in SMEs. The study found that company size significantly impacts organizational preparedness for I5.0 adoption. Additionally, the analysis revealed that companies should focus on developing a strategic vision, building a skilled workforce, securing financial resources, and integrating into digital supply chains to facilitate I5.0 adoption. The findings offer useful insights for managers, identifying key organizational factors to prioritize for successful I5.0 implementation. The results provide actionable guidance for companies uncertain about how to begin their I5.0 journey.