Industry 5.0: A socio-technical system perspective on human agency and institutional legitimacy

Abstract The rise of Generative AI has accelerated the shift toward Industry 5.0, marking a critical transition from the technology-centric focus of Industry 4.0 to a human-centric, value-driven paradigm. While its predecessor prioritized automation and technology, Industry 5.0 integrates advanced human–machine collaboration with social imperatives to create resilience. This study advances current literature by presenting a novel systems-based framework, grounded in systems theory and legitimacy theory, which conceptualizes Industry 5.0 as an interconnected ecosystem rather than isolated pillars. We identify technological adaptation, specifically AI integration, and human-centricity as critical inputs that drive economic, environmental, and social sustainability as systemic outputs. By mapping these interdependencies, the model demonstrates how cohesive components collectively fuel organizational transformation. These findings offer actionable insights for aligning corporate strategies with Sustainable Development Goals, providing policymakers and practitioners with future-oriented pathways to navigate this complex, emerging industrial environment.