Implementation Barriers to Industry 5.0: The Mediating Role of Organizational Readiness in Firm-Level Adoption

Abstract:

Although Industry 5.0 is increasingly discussed as a human-centric, resilient, and sustainable industrial paradigm, empirical research on its implementation remains limited. This study aims to identify and validate the multidimensional structure of level of Industry 5.0 implementation barriers and to examine their effects on organizational readiness and implementation at the firm level. The study draws on a quantitative cross-sectional survey of 286 organizations in Slovakia and applies exploratory factor analysis, confirmatory factor analysis, and structural equation modelling. The findings confirm that implementation barriers form a higher-order multidimensional construct comprising organizational, strategic and resource, people and skills, and technological and governance barriers. Perceived need for Industry 5.0 significantly strengthens organizational readiness, while barriers weaken it. Organizational readiness exerts a substantial positive effect on the level of Industry 5.0 implementation and partially mediates the relationship between barriers and implementation. The study extends the empirical literature on Industry 5.0 by offering a firm-level structural explanation of how multidimensional barriers and organizational readiness shape implementation outcomes.