Inventory Knowledge, Industry 5.0 and Performances: Review and Future Research Agenda

Inventory management (IM) is emerging as a focal point in Industry 5.0 (I5.0), especially within the manufacturing setups, because of its alignment with the environmental and sustainability goals of the firm's operation. This research explores the disparity between theoretical views and practical applications of IM, highlighting the significance of domain‐specific knowledge and its impact on the I5.0 principles that guide manufacturing operations. Utilizing a systematic literature review approach, the research explores recent theoretical and practical developments in IM and I5.0, focusing on how firms strategically leverage and optimize the utilization of IM. The inquiry progressed through a three‐stage review process of IM and I5.0 literature. From an initial sample of 698 documents between 2020 and 2024, exclusion criteria narrowed the sample to 210 relevant articles and review studies in the business and management disciplines, eventually narrowing down to industry relevance, theoretical adequacy, and scope. After rigorous filtration, the research identifies and theoretically argues both conventional and advanced IM practices adopted over the last 7 years, with a special emphasis on knowledge inventory know‐how in the context of I5.0. It also explores how I5.0 moderates the relationship between inventory management practices (IMPs) and operational performance. Based on the 41 high‐quality research output reviews, the study establishes a theoretical link between I5.0, IMPs, and knowledge inventory know‐how for enhancing operational performance. The theoretical discussion highlights research gaps and suggests a roadmap for future research into IM and I5.0 through an articulated conceptual research model. The model shows a path toward adopting advanced IMP and knowledge inventory know‐how under I5.0 to improve manufacturing operational performance. This research provides valuable insights for industry practitioners seeking to integrate I5.0 concepts into sophisticated IMPs, ensuring a seamless and efficient operational flow.