Enhancing human capital for Industry 4.0: a case of Indian manufacturing sector

Purpose The study aims to identify the essential competencies for Industry 4.0 within the manufacturing sector, to prioritise developing them among the workforce in creating a competitive advantage for the organization. Design/methodology/approach The study employs the Analytic Hierarchy Process (AHP), a multi-criteria decision-making (MCDM) methodology to prioritize competencies. Literature review and expert input guided the identification of competencies, which were ranked by experts for their relevance, through pairwise comparisons. Findings Seven competency groups, encompassing 21 sub-groups, were identified as essential for the Industry 4.0 workforce. Digital-technical and industry-specific competencies emerged as the most prominent to be developed on priority, followed by cognitive and business competencies. Despite their smaller representation, core/generic competencies remain the foundation for developing the newer and more specialised competencies. Research limitations/implications Recognising the need for empirical studies in early-adopting organisations of Industry 4.0, future research should explore competencies across industries as well as talent development mechanisms, for a nuanced understanding of competency requirements. Practical implications The study informs organisations, educators and policymakers guiding workforce training, talent management and development, educational curriculum aligned with the demands of Industry 4.0 to bridge the competency gaps. It can support India’s strategic initiatives like “Make in India” by fostering a digitally ready and competent workforce. Originality/value This research provides an empirically validated, structured framework for Industry 4.0 competency prioritization specific to the manufacturing sector in India. It integrates expert inputs with AHP to rank competencies, offering a contextual understanding of competency requirements. It also contributes to human capital theory by advancing competency mapping for Industry 4.0.