Developing a framework for Industry 3.5 to strengthen manufacturer performance

As no previous empirical research has focused on the domain of Industry 3.5 in terms of structural equation modelling development, this study aims to investigate the phenomenon of fit among several Industry 3.5 indicators and manufacturer performance. The concept of Industry 3.5 is relatively new and mainly involves creating a transition from Industry 3.0 to 4.0. In particular, this study analyses the several causal indicators of Industry 3.5 on manufacturer performance using covariance-based structural equation modelling. The manufacturer performance is evaluated from the extent of opportunities obtained by businesses, which is investigated using three indicators: digital decision-making, digital transformation, and total resource management. The results indicate that these are the key driving factors that determine the manufacturing performance in Industry 3.5.