Data-Enabled Production and the Resilience of Global Production Networks: Evidence from the Industry 5.0 Era

Global production networks (GPNs) have become increasingly vulnerable to external disruptions, highlighting the need to identify new sources of resilience in the Industry 5.0 era. This study examines the relationship between data-enabled production (DEP) and the resilience of global production networks. Drawing on a cross-country, cross-industry panel dataset, we conceptualize GPN resilience from two complementary dimensions: dynamic stability and static safety. Using fixed-effects models, instrumental-variable estimation, robustness tests, mediation analysis, and heterogeneity analysis, we find that DEP is significantly associated with greater overall GPN resilience. Further analysis shows that DEP is positively associated with both dynamic stability and static safety, with distinct potential mechanisms underlying these relationships. Specifically, DEP is associated with shorter trade times, consistent with the proposed explanation for its relationship with dynamic stability. Meanwhile, DEP is positively associated with technological participation, which is in turn associated with economies’ capacity to maintain their positions in global production networks. The correlation also varies among different economic development stages and different technological-level sectors, indicating that developing countries and developed countries exhibit distinct characteristics in the pattern of the relationship between data-enabled production and resilience. These findings extend the literature on digitalization and production-network resilience by highlighting the potential relevance of data not only to production efficiency but also to both the dynamic adaptability and structural security of global production networks. The study further discusses the potential relevance of data-enabled production to resilient and sustainable production systems under Industry 5.0.