Strategic perception of Industry 4.0 and its impact on digital servitization in manufacturing firms

Purpose This study examines the influence of Industry 4.0 perception and organizational structures on competency development, workforce training and strategic objectives in manufacturing firms undergoing digital servitization (DS). The research identifies key relationships and provides guidelines to optimize DS strategies, emphasizing the role of human capital and advanced technologies in enhancing business competitiveness. Design/methodology/approach A structural equation modeling (SEM) approach was applied to analyze data from 98 Spanish manufacturing firms implementing DS strategies. The study evaluates the perceived importance of Industry 4.0, the presence of dedicated Industry 4.0 units, required competencies and diverse training profiles, assessing their impact on achieving strategic objectives. Findings The results indicate that Industry 4.0 perception significantly influences competency development, workforce training and the achievement of strategic objectives such as customer retention, competitive differentiation and innovation. However, the mere existence of dedicated Industry 4.0 units does not guarantee competency improvement or goal achievement, highlighting the need for a holistic, integrated approach to DS. Practical implications Findings offer actionable recommendations for firms to align DS strategies with talent development, ensuring that Industry 4.0 initiatives are effectively integrated into business models for long-term competitiveness. Originality/value This study differentiates between strategic perception and formal organizational structures, offering novel insights into the interplay between human capital and digital technologies in servitization. It contributes to the resource-based view (RBV) and dynamic capabilities theory, providing empirical evidence on the effectiveness of Industry 4.0 strategies.