IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2604.01364.html

From Automation to Augmentation: A Framework for Designing Human-Centric Work Environments in Society 5.0

Author

Listed:
  • Cristian Espinal Maya

Abstract

Society 5.0 and Industry 5.0 call for human-centric technology integration, yet the concept lacks an operational definition that can be measured, optimized, or evaluated at the firm level. This paper addresses three gaps. First, existing models of human-AI complementarity treat the augmentation function phi(D) as exogenous -- dependent only on the stock of AI deployed -- ignoring that two firms with identical technology investments achieve radically different augmentation outcomes depending on how the workplace is organized around the human-AI interaction. Second, no multi-dimensional instrument exists linking workplace design choices to augmentation productivity. Third, the Society 5.0 literature proposes human-centricity as a normative aspiration but provides no formal criterion for when it is economically optimal. We make four contributions. (1) We endogenize the augmentation function as phi(D, W), where W is a five-dimensional workplace design vector -- AI interface design, decision authority allocation, task orchestration, learning loop architecture, and psychosocial work environment -- and prove that human-centric design is profit-maximizing when the workforce's augmentable cognitive capital exceeds a critical threshold. (2) We conduct a PRISMA-guided systematic review of 120 papers (screened from 6,096 records) to map the evidence base for each dimension. (3) We provide secondary empirical evidence from Colombia's EDIT manufacturing survey (N=6,799 firms) showing that management practice quality amplifies the return to technology investment (interaction coefficient 0.304, p

Suggested Citation

  • Cristian Espinal Maya, 2026. "From Automation to Augmentation: A Framework for Designing Human-Centric Work Environments in Society 5.0," Papers 2604.01364, arXiv.org.
  • Handle: RePEc:arx:papers:2604.01364
    as

    Download full text from publisher

    File URL: https://arxiv.org/pdf/2604.01364
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nicholas Bloom & Raffaella Sadun, 2012. "The Organization of Firms Across Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(4), pages 1663-1705.
    2. Susan C. Athey & Kevin A. Bryan & Joshua S. Gans, 2020. "The Allocation of Decision Authority to Human and Artificial Intelligence," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 80-84, May.
    3. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
    4. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    5. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    6. Daron Acemoglu & Pascual Restrepo, 2022. "Tasks, Automation, and the Rise in U.S. Wage Inequality," Econometrica, Econometric Society, vol. 90(5), pages 1973-2016, September.
    7. Luis Garicano, 2000. "Hierarchies and the Organization of Knowledge in Production," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 874-904, October.
    8. Teece, David J, 2018. "Dynamic capabilities as (workable) management systems theory," Journal of Management & Organization, Cambridge University Press, vol. 24(3), pages 359-368, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bloom, Nicholas & Van Reenen, John, 2011. "Human Resource Management and Productivity," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 19, pages 1697-1767, Elsevier.
    2. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
    3. Piero Esposito & Francesco Ferrante, 2024. "Control freaks or good parents? Entrepreneurial motivation and firms’ innovative performance," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 41(3), pages 739-769, October.
    4. Lyu, Wenjing & Liu, Jin, 2021. "Soft skills, hard skills: What matters most? Evidence from job postings," Applied Energy, Elsevier, vol. 300(C).
    5. Wouter Dessein & Richard Holden, 2022. "Organizations with Power-Hungry Agents," Journal of Law and Economics, University of Chicago Press, vol. 65(S1), pages 263-291.
    6. Xiaoyang Li & Xuan Zhou, 2021. "Autonomy, incentive and trade: How does trade liberalisation reshape corporate decentralisation in China?," The World Economy, Wiley Blackwell, vol. 44(10), pages 3051-3069, October.
    7. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2010. "Recent Advances in the Empirics of Organizational Economics," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 105-137, September.
    8. Phillipe Aghion & Nicholas Bloom & John Van Reenen, 2014. "Incomplete Contracts and the Internal Organization of Firms," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 30(suppl_1), pages 37-63.
    9. Lyu, Wenjing & Liu, Jin, 2021. "Artificial Intelligence and emerging digital technologies in the energy sector," Applied Energy, Elsevier, vol. 303(C).
    10. Lorenz Kueng & Mu-Jeung Yang & Bryan Hong, 2014. "Sources of Firm Life-Cycle Dynamics: Differentiating Size vs. Age Effects," NBER Working Papers 20621, National Bureau of Economic Research, Inc.
    11. Bryan Hong & Lorenz Kueng & Mu-Jeung Yang, 2019. "Complementarity of Performance Pay and Task Allocation," Management Science, INFORMS, vol. 65(11), pages 5152-5170, November.
    12. Nicholas Bloom & Benn Eifert & Aprajit Mahajan & David McKenzie & John Roberts, 2013. "Does Management Matter? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 1-51.
    13. Irina Levina, 2016. "By connection or by competition? Decentralization of decision-making and hiring strategies at Russian firms," Applied Econometrics, Russian Academy of National Economy and Public Administration (RANEPA), vol. 43, pages 73-95.
    14. Hoang, Daniel & Gatzer, Sebastian & Ruckes, Martin E., 2018. "The economics of capital allocation in firms: Evidence from internal capital markets," Working Paper Series in Economics 115, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    15. Micole De Vera & Javier Garcia‐Brazales, 2025. "Establishment size and the task content of jobs: evidence from 46 countries," Economica, London School of Economics and Political Science, vol. 92(366), pages 548-579, April.
    16. Raffaella Sadun & John Van Reenen & Nick Bloom, 2008. "Measuring And Explaining Decentralization Across Firms And Countries," 2008 Meeting Papers 246, Society for Economic Dynamics.
    17. Philippe Aghion & Benjamin F. Jones & Charles I. Jones, 2018. "Artificial Intelligence and Economic Growth," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 237-282, National Bureau of Economic Research, Inc.
    18. Sharon Belenzon & Honggi Lee & Andrea Patacconi, 2023. "Managing risk in corporate groups: Limited liability, asset partitioning, and risk compartmentalization," Strategic Management Journal, Wiley Blackwell, vol. 44(12), pages 2888-2921, December.
    19. Dalia Marin & Linda Rousová & Thierry Verdier, 2021. "Do Multinationals Transplant their Business Model?," The Economic Journal, Royal Economic Society, vol. 131(634), pages 899-945.
    20. Friebel, Guido & Raith, Michael, 2016. "Managers, Training, and Internal Labor Markets," VfS Annual Conference 2016 (Augsburg): Demographic Change 145666, Verein für Socialpolitik / German Economic Association.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2604.01364. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: https://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.