Strategic human resource capabilities for digital transformation: Linking talent, leadership, competence and readiness to technology adoption

Abstract

Orientation: Digital transformation has become a decisive factor in enhancing competitiveness within manufacturing industries; however, many firms in emerging economies continue to face constraints related to workforce capability and organisational readiness.
Research purpose: This study examines the influence of digital talent strategy (DTS) and technology-driven leadership (TDL) on digital technology adoption (DTA), with digital competency development (DCD) and digital change readiness (DCR) acting as mediating mechanisms.
Motivation for the study: Although prior research highlights the importance of talent and leadership in digital transformation, existing studies often treat these dimensions separately and predominantly focus on advanced economies. The Indonesian manufacturing sector therefore offers a relevant context to explore how people-oriented strategies support digital adoption under systemic disruption.
Research approach/design and method: A quantitative survey was conducted involving 250 respondents from medium- and large-scale manufacturing firms across five industrial estates in West Java, Indonesia. Data were analysed using partial least squares structural equation modelling.
Main findings: The findings indicate that DTS has a significant direct and indirect effect on DTA through DCD and DCR. While TDL does not exert a direct influence on DTA, it demonstrates a strong indirect effect via DCR, highlighting the central role of organisational readiness in facilitating digital adoption.
Practical/managerial implications: Manufacturing firms are encouraged to institutionalise structured digital talent planning, continuous training, and recruitment aligned with digital requirements. Leadership efforts should prioritise strengthening readiness and fostering supportive organisational climates for transformation.
Contribution/value-add: This study advances the resource-based view and dynamic capabilities perspectives by integrating talent, leadership, competence, and readiness into a unified framework for digital transformation, offering both theoretical insight and practical guidance for organisations in emerging economies.