Abstract
This study investigates how startups in Industry 5.0 environments can translate AI capabilities into tangible manufacturing performance. Drawing on complexity and configuration theories, we use fuzzy set Qualitative Comparative Analysis (fsQCA) on survey data from 105 employees in Indian steel startups to identify combinations of technologies and practices that optimize workflows and safety. We examine thirteen conditions across three constructs—Technology, Smart Collaboration & Capabilities, and Agility & Innovation—and reveal four equifinal paths to high performance. AI collaboration and smart factory readiness are quasi-necessary conditions, while demand volatility and skill shortages show asymmetrical effects. Our findings contribute to Industry 5.0 theory by demonstrating that AI’s impact depends on its alignment with complementary technological and organizational factors. The results offer actionable guidance for managers seeking to tailor AI adoption strategies to their specific contexts, rather than relying on one-size-fits-all solutions.
Recommended Citation
S, Varsha P.; Mulgund, Pavankumar; Narayanasamy, Arun; and Kumar, Amit, "Role of AI in Exploring the Paths of the Manufacturing Sector in Industry 5.0: An Empirical Insight using fsQCA Approach" (2025). Proceedings of the 2025 Pre-ICIS SIGDSA Symposium. 66.
https://aisel.aisnet.org/sigdsa2025/66