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The Confluence of Digital Twin and Blockchan Technologies in Industry 5.0: Transforming Supply Chain Management for Innovation and Sustainability

Author

Listed:
  • Zhen Zhen

    (Nanjing Vocational College of Information Technology)

  • Yanqing Yao

    (Fesco Adecco Tech Co., Ltd.)

Abstract

In the era of Industry 5.0, characterized by the seamless collaboration between humans and machines, the integration of digital twin technology (DTT) and blockchain technology (BCT) is poised to revolutionize supply chain management. This research explores the impact of DTT and BCT on achieving sustainable and efficient supply chain operations. Digital twins, virtual replicas of physical systems, enable real-time analysis and simulations, enhancing decision-making and operational efficiency. Simultaneously, blockchain technology ensures transparency and security in supply chains by maintaining unchangeable transaction records. This paper delves into the advantages and challenges presented by these technologies, examining real-world case studies across various industries. The study reveals that the combination of DTT and BCT creates a symbiotic relationship, driving continuous monitoring and validation of supply chain processes. This integration aligns with global sustainability goals, emphasizing resource optimization and waste reduction. However, data privacy, scalability, and interoperability remain significant barriers. A comprehensive approach is advocated to overcome these challenges, emphasizing ethical and environmental norms. Furthermore, this research offers insights into the mediating role of sustainable supply chain management (SSCM) practices and dynamic capabilities in the relationship between Industry 5.0 technologies and operational resource utilization (ORU) performance. It highlights the need for a sophisticated strategy in implementing technology adoption initiatives. This study contributes to theoretical advancements in Industry 5.0 by elucidating the complex interactions between DTT, BCT, and SSCM, paving the way for future research. Additionally, it provides valuable policy implications, guiding policymakers to prioritize innovation, transparency, and sustainability in the industrial sector. Integrating DTT and BCT can reshape supply chain dynamics, fostering a future marked by efficiency, innovation, and environmental responsibility.

Suggested Citation

  • Zhen Zhen & Yanqing Yao, 2025. "The Confluence of Digital Twin and Blockchan Technologies in Industry 5.0: Transforming Supply Chain Management for Innovation and Sustainability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 5295-5321, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02151-0
    DOI: 10.1007/s13132-024-02151-0
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