Strategic Human Resource Development for Industry 4.0 Readiness: A Sustainable Transformation Framework for Emerging Economies

Abstract

Industry 4.0 represents a significant transformation in industrial systems through digital integration, presenting both opportunities and challenges for aligning the workforce, especially in emerging economies like Thailand. This study adopts a sequential exploratory mixed-method approach to investigate how strategic human resource development (HRD) contributes to sustainable transformation, defined as the enduring alignment between workforce capabilities and technological advancement. The qualitative phase involved case studies of five Thai manufacturing firms at varying levels of Industry 4.0 adoption, utilizing semi-structured interviews with executives and HR leaders. Thematic findings informed the development of a structured survey, distributed to 144 firms. Partial Least Squares Structural Equation Modeling (PLS SEM) was used to test the hypothesized relationships among business pressures, leadership support, HRD preparedness, and technological readiness. The analysis reveals that business pressures significantly influence leadership and HRD, which in turn facilitate technological readiness. However, business pressures alone do not directly enhance readiness without the support of intermediaries. These results underscore the critical role of integrated HRD and leadership frameworks in enabling sustainable digital transformation. This study contributes to theoretical perspectives by integrating HRD, leadership, and technological readiness, offering practical guidance for firms aiming to navigate the complexities of Industry 4.0. © 2025 by the authors.