Government regulations or entities’ sensitivities in smart SSC? Analysing through dynamic evolution from infant to mature stage

Despite the importance of technology in advancing sustainable supply chains (SSCs), its efficiency falls short due to the intricate, dynamic interactions among stakeholders. This study investigates how government policies and the sensitivities of internal entities influence the evolution of SSCs, aiming to build a resilient SSC in Industry 5.0 (I5.0). We develop a quadrilateral evolutionary game model incorporating traceability and sustainability-sensitive SSC entities – governments, manufacturers, third-party collectors, and consumers. Blockchain technology is introduced to enhance product traceability, while qualified recycling and sustainable manufacturing practices support long-term sustainability. By solving the replicator dynamics, we determine equilibrium strategies and analyse their stability. Our findings reveal how the interplay of entities’ individual decisions and policies influences the strategic choices of others within the SSC. Furthermore, we identify specific regions where stakeholder sensitivities shape different evolutionary stable strategies (i.e., stable strategies of SSCs). Most importantly, our results indicate that stakeholder sensitivities can, in certain conditions, substitute for direct policy interventions, thereby influencing the evolutionary trajectory of SSC system. The study provides a comprehensive framework for understanding the transition of SSCs from their initial stages to maturity in I5.0, highlighting the critical roles of technology adoption and stakeholder-driven sustainability.