MNE 's Current Need: Torchbearer of Adopting Legitimized Sustainable Strategies Through Industry 4.0 Concepts for Society 5.0

ABSTRACT This research investigates the interplay between legitimacy theory and Society 5.0, focusing on how Industry 4.0 technologies can support sustainable practices within MNEs. Our theoretical model highlights the significance of intra‐ and inter‐societal collaboration, advocating that MNEs engage all stakeholders through transparent sustainability reporting and the adoption of advanced technologies such as Digital Twins and IoT. This approach is crucial for building societal trust and fostering an informed community. We argue that MNEs can proactively align their sustainable development strategies with their corporate objectives by embracing these technologies, thus avoiding implausible deniability and ensuring their actions are legitimate and responsible. Despite the evolving nature of Industry 4.0 and Society 5.0 concepts, our study suggests that empirical testing is necessary to validate the model across various industries and cultural contexts, bridging theoretical constructs and practical applications. Moreover, we emphasize the need for MNEs to lead in the circular economy by leveraging Industry 4.0 to enhance societal collaboration and sustainable practices. By addressing the complexities of sustainability dynamics, MNEs can adopt a balanced approach aligned with the principles of Society 5.0. We expect future research to expand our model by exploring additional dimensions of legitimacy theory and Industry 4.0 technologies, thereby supporting MNEs in implementing socially responsible frameworks that benefit society and the environment.