Regional variations in digital transformation: the impact of industry 5.0 on business quality performance

Abstract

After criticism of the technological orientation of Industry 4.0, many authors began to highlight the importance of Industry 5.0, which considers human-oriented values. This opened space for a lot of research on how people perceive new technologies in this environment and their relationship with the new paradigm – Industry 5.0. The paper aims to examine the relationship between familiarity with Industry 5.0 and business quality performance in SMEs through the workers’ perception of digitalisation (attitudes toward digitalisation, digitalisation usage behaviour, and digitalisation behavioural intentions). The results were obtained through a questionnaire conducted in six European countries divided into two groups according to familiarity with Industry 5.0 employing Multi-Group Confirmatory Factor Analysis (MGCFA). The findings implied the existence of significant relationships between familiarity with Industry 5.0 and quality performances through certain mediating variables. Additionally, a difference was established between the two groups of countries: High Familiarity Level and Low Familiarity Level. These conclusions benefit SMEs by facilitating change and technology adaptation. Positive perceptions drive the gradual adoption of digitalisation, boosting competitiveness through agility, innovation, and efficiency. The research offers insights for practitioners and policymakers to enhance SMEs’ competitiveness in Industry 5.0.