This study aims to examine how Industry 5.0 capabilities influence firms’ achievement of sustainable development goals (SDGs) by investigating the mediating role of opportunity recognition and the moderating role of social pressure. Drawing on dynamic capability theory, the study explains how and when technological advancements translate into sustainable outcomes in emerging economies.
Data were collected using a two-wave time-lagged survey from 487 managers across manufacturing firms in China. The proposed model was tested using partial least squares structural equation modeling with SmartPLS 4.
The results reveal that Industry 5.0 has a significant positive effect on both opportunity recognition and SDG achievement. Opportunity recognition partially mediates the relationship between Industry 5.0 and SDGs, highlighting its role as a key sensing capability. Furthermore, social pressure positively moderates the relationship between opportunity recognition and SDGs, strengthening the impact of recognized opportunities on sustainable outcomes.
This study contributes to the literature by providing a process-based explanation of how Industry 5.0 drives sustainability outcomes through the lens of dynamic capability theory. Specifically, it identifies opportunity recognition as a critical sensing capability and highlights social pressure as an important boundary condition. The findings offer practical insights for managers in China’s rapidly evolving digital economy on leveraging Industry 5.0 technologies to systematically identify sustainability opportunities and achieve SDGs.
