Technological Forecasting & Social Change 173 (2021) 121080

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Technological Forecasting & Social Change

journal homepage: www.elsevier.com/locate/techfore

Proposed managerial competencies for Industry 4.0 – Implications for

social sustainability
Sateesh V. Shet a, *, Vijay Pereira b
a
School of Business Management, NMIMS University, Mumbai, India
b
NEOMA Business School, Reims Campus, France

A R T I C L E I N F O A B S T R A C T

KeyWords: Industry 4.0 (I4.0) is creating a paradigm shift within the current industrial context. The study presented in this
Industry 4.0 paper involved identifying and proposing the managerial competencies needed for a successful I4.0 environment.
Competencies I4.0 is a complex phenomenon that spans multiple technologies and requires an extensive set of capabilities that
Human resource
managers and organizations need to develop in their functional and business contexts. Using the published
Capabilities
Sustainability
literature on I4.0, we uncovered the key themes following a qualitative coding method that identified the
Skills managerial competencies most relevant to I4.0. We thus identify a set of 14 managerial competencies as crucial
Competency model to I4.0. We further contribute to the literature by making an assessment of the significance of all these com­
Competence petencies and proposing a competency model with behavioral descriptors for each. We expect the findings in this
Competency paper to benefit business organizations, policy makers, academics, and other stakeholders engaged in developing
Managerial competencies the capabilities required for an I4.0 ecosystem.

1. Introduction
The attention of scholars and practitioners alike has been captured
by research on the fourth industrial revolution (Industry 4.0 or I4.0) and
comparably faster than earlier similar phenomena (Mariani and Borghi,
2019, Mubarak and Petraite, 2020, Rafael et al., 2020, Shao et al., 2021,
Szalavetz, 2019). Different sectors—such as supply chain management,
logistics, and manufacturing—are benefiting from I4.0 in the form of
smart factories, connected supply chains, and efficient logistics; how­
ever, the domain remains complex owing to its unique operational and
infrastructure requirements (Büchi et al., 2020, Chatterjee et al., 2021).
Concepts such as artificial intelligence (AI), the Internet of things (IoT),
data analytics, robotics, social connectivity, gig work, and hybrid
workforce models incorporate aspects of I4.0; hence, the competencies
required for I4.0 differ widely from those of earlier revolutions. On this
basis, the main objective of our study was to identify the managerial and
organizational competencies required for the successful adoption of
I4.0.
We define I4.0 as the automation of manufacturing and industrial
processes achieved using state-of-the-art technologies and tools (Kerin
and Pham, 2019, Vaidya et al., 2018). It is represented by a network of
digitally connected machines that share information across different
business domains and processes (Mendes et al., 2020; Dalenogare et al.,
2018). With smart machines, factories become more productive, as
business operations and functions improve and become optimized
(Lytras et al., 2017). To bridge the digital and physical worlds, I4.0
utilizes cyber-physical systems (CPS) that help replace the conventional
centralized control systems found in manufacturing (Frank et al., 2019).
I4.0 has substantially increased the pace and extent of digitization in
manufacturing. It has transformed conventional manufacturing with its
focus on automation, interconnectivity, and real-time data (Scremin
et al., 2018). The main objective of I4.0 is thus to increase the efficiency,
production rate, and quality of manufacturing. Further, the sophisti­
cated tools and technology used in I4.0 improve the safety conditions of
workers operating in perilous work environments, as its major tech­
nologies include AI, robotics, IoT, cloud computing, block chain, and big
data analytics (Benzidia et al., 2021, Kim, 2017). Also termed ‘smart
manufacturing’, I4.0 combines manufacturing processes with technol­
ogies like big data and machine learning to create better work envi­
ronments. Additionally, I4.0 addresses the need for better connectivity
in organizations and helps in accessing the data and information needed
across different manufacturing processes (Khan et al., 2017). The
manufacturing, supply chain, and logistics sectors are at the forefront of
the adoption and implementation of I4.0, resulting in considerable

* Corresponding author.
E-mail addresses: svshet@hotmail.com (S.V. Shet), Vijay.Pereira@port.ac.uk (V. Pereira).

https://doi.org/10.1016/j.techfore.2021.121080
Received 6 March 2021; Received in revised form 23 July 2021; Accepted 26 July 2021
Available online 12 August 2021
0040-1625/© 2021 Elsevier Inc. All rights reserved.
S.V. Shet and V. Pereira
research being conducted in both the technological and human-focused
fields. However, for this new ecosystem to be effective and successful,
there is a pressing need to identify the key aspects of human capabilities,
especially managerial competencies, required in this new domain, as we
witness a greater evolution of the I4.0 movement.
According to Schwab (2017), an industrial revolution occurs when
new technologies and new ways of seeing the world emerge and cause
revolutionary changes in both the economy and society. The first in­
dustrial revolution was ushered in by mechanical production, with the
invention of the steam engine bringing mobility. The second industrial
revolution was started by scientific developments; mass production
boomed with the use of electricity, while radio and telephones revolu­
tionized communication (Morrar et al., 2017). The third industrial
revolution was linked to the digital revolution, with the introduction of
semiconductors, personal and industrial computing, and the Internet
leading global social change. The fourth revolution is more complex,
being characterized by multiple technologies that influence speed and
integration (Philbeck and Davis, 2018). Hence, we argued that—unlike
the previous ones, which evolved at their own pace—the fourth revo­
lution, led by algorithm-based decision-making, necessitates advanced
managerial capabilities for its success.
The acute shortage of skilled professionals in manufacturing poses a
threat to intelligence-based manufacturing from the perspective of
human capital. This shortage is already evident in the US, where it will
be impossible to meet the projected requirement of 3.5 million operators
by 2030 through conventional apprenticeship programs, as I4.0 tech­
nologies are too complex (Wang, 2018). Developing a competency
model for I4.0 will thus contribute considerably to the evolving debate
on human capital skills in the field. We further highlight some of the
underlying issues that made such a study necessary in this pressing
context.
As established, I4.0 is a multi-disciplinary concept that borrows from
information systems, information technology, decision sciences, opera­
tions research, decision science, supply chain, project management, and
organizational psychology, and from different branches of engineering,
such as mechanical, electronic, computer, and electrical engineering
(Ivanov, 2020). We argue that these domains will be intricately inte­
grated at both the operational and business levels, and we therefore
posit that managers will need new ways of thinking to operate in this
complex ecosystem. We further posit that new jobs, better suited to these
new organizational contexts, will thus arise as each organization will
have its own I4.0 architecture, and firms will have no choice but to
develop such capabilities in their managers. Additionally, the techno­
logical evolution in this environment is increasing rapidly and, in order
to assimilate this new domain in regard to its implementation within
their organizations, managers will need to continuously update their
knowledge of technologies, algorithms, work strategies etc. We addi­
tionally posit that the technological infrastructure alone will not yield
results unless managers can steer their organizations’ objectives in
alignment with the relevant technologies. A competent manager will
thus leverage the required knowledge, skills, abilities, and opportunities
(KSAOs) to deliver superior performance (McClelland and Boyatzis,
1980). We assert that, in this context, organizations should clearly
define their human resource needs by means of the competency model.
Further, certain KSAOs may already exist within the internal workforce,
while others may need to be sourced from outside. Hence, organizations
will need a competency model suited to assist them in their recruitment
processes and attract the talent needed to develop their I4.0 capabilities.
The findings of existing I4.0 studies point at a substantial disconnect
between theory and practice in relation to the competencies and skills
required for I4.0 (Campion et al., 2020).
While the technologies relevant to I4.0 have been widely discussed,
the management strategies suited to this new ecosystem of connected
smart factories have not received much attention. We thus lack knowl­
edge in regard to the managerial competencies required to operate in
I4.0. Although scholars have noted the absence of a discourse on
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Technological Forecasting & Social Change 173 (2021) 121080
functional capabilities, the need for these competencies is still lacking
holistically from the stakeholder’s perspective. Bearing these research
gaps in mind, we therefore set out to address the following research
questions:
RQ1 – What set of key competencies do managers require when operating
within an I4.0 context?
RQ2 – What are the implications and consequences of each of these
competencies for an organization?
We assert that the creation of an I4.0 competency model would have
considerable value as a guide for human resource development,
including for universities and organizations that focus on I4.0 for sus­
tainable development. Our research thus contributes both to theory and
practice by developing such much-required comprehensive model. We
reiterate that, through this paper, we contribute to the literature by
seeking to address the above-mentioned knowledge gap by considering
the crucial aspect of managerial competencies for I4.0 roles. We further
contribute by providing a description of the competencies needed to
acquire and develop managerial talent in this domain from the aca­
demic, consulting, industry, and societal perspectives. We thus add to
the body of knowledge by providing a basis for future research on
competency criteria in this relevant business field. Theoretically, our
work essentially contributes to human capital theory and to the domain
of competency modelling in I4.0 by enumerating the HR capabilities
required for emergent manufacturing environments. We suggest that
HRM practitioners and line managers in organizations use these mana­
gerial competencies to assess, engage, and develop their managers when
implementing I4.0. The speed of innovation in various technologies is
influencing the adoption of Industry 4.0 in industries; however, the
building and development of the managerial capabilities needed for I 4.0
are not proceeding at the same pace. Hence, the academic debate, in the
form of special issues, should create the body of knowledge required to
bridge this gap. In this special issue, our paper makes a contribution on
the managerial capabilities required for I4.0 to meet sustainable
development.
In the following sections, we discuss our theoretical framework,
methodology, and findings, present a discussion of our study and its
implications, suggest future research directions, and draw our
conclusions.
2. Theoretical framework
I4.0 removes the barriers that exist between the different de­
partments in manufacturing organizations (Bartodziej, 2017); it does so
by better connecting and coordinating their employees, systems, and
processes by automating manufacturing and thus transforming the in­
tegrated supply chain (Hofmann et al., 2019). High-end tech­
nologies—such as cloud systems and big data—have become cheaper,
and businesses can now afford to use them for large-scale operations.
(Esmaeilian et al., 2020). I4.0 is entirely different from past industrial
revolutions because it works by integrating technologies like the IoT, big
data, and AI and by exploiting their interaction across various physical
and digital domains (see appendix 1 for a I4.0 Architecture). The
availability of versatile technological tools has resulted in I4.0 spreading
swiftly and efficiently across industries. Hence, we conclude that the
fourth industrial revolution is evolving at a faster rate than previous
ones (Yin and Yi, 2018).
In regard to the I4.0 context, we would expect managers to have
several skill sets, including (i) functional skills in managing budgets,
organizing workflows, and generating organizational reports using
different automation tools and (ii) behavioral skills like creativity,
emotional intelligence, and complex problem solving, critical thinking,
workforce management, and decision-making abilities. Managers
endowed with these capabilities will be able to lead their organizations
towards technology-driven changes and automation (Agostini and
S.V. Shet and V. Pereira
Fig. 1. Flow chart of the procedure adopted in systematic literature review.
Filippini, 2019). As technology takes care of repetitive tasks, managers
can focus on delivering strategic objectives and forging strong re­
lationships within the organization (Dzwigol et al., 2020). Managers
need digital training to the use of digital platforms because, in I4.0,
business domains are increasingly volatile and technology-dependent
(Grzybowska and Łupicka, 2017). Managers should be conversant
with business skills, being capable of striking the right balance between
profitability and operations, which are both significant for an organi­
zation’s long-term success (Łupicka and Grzybowska, 2018). I4.0 re­
quires managers to introduce disruptive innovations by making
data-driven decisions suited to provide a competitive edge to their or­
ganizations. We also contend that continuous learning is an important
requirement and that managers should upskill their employees for
technology-driven jobs (Popkova and Zmiyak, 2019).
The resource-based view (RBV) states that companies develop a
competitive advantage based on their possession of difficult-to-imitate,
rare, and valuable resources (Bordeleau et al., 2020, Pereira and
Bamel, 2021), which may be tangible, intangible, and personnel-based.
A firm’s tangible resources are represented by its physical assets, while
its intangible ones are, for instance, its products’ quality, and
personnel-based resources include employee technical expertise and
training. A firm gains a competitive advantage by mustering its re­
sources in order to attain organizational competencies, to which we
refer as a firm’s capability to acquire, integrate, and employ the valuable
organizational resources, (Babatunde, 2020). The theoretical framework
of the RBV is related to human capital theory and to the human capital
resource framework, wherein human capital has been identified as
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Technological Forecasting & Social Change 173 (2021) 121080
involving the information, knowledge, skills, ideas, and health of in­
dividuals. The conceptualization of human capital has recently been
redefined and is now referred to as the knowledge, skills, abilities, and
opportunities (KSAO) of personnel (Avitia-Carlos et al., 2019). Human
capital is thus a resource if individual KSAO can be measured and be
found to make an optimized contribution to organizational objectives
(Pereira and Malik, 2015). When working within I4.0 contexts, man­
agers need to acquire new competencies and skills in order to play the
emerging roles that require these valuable and competent human re­
sources. This argument justifies the need for personnel to possess the
specific KSAOs that endow an organization with critical competencies.
Competencies are sets or combinations of behaviors that are instru­
mental in driving and delivering fixed desired results, performances, and
outcomes (Bartram, 2005). Thus, competencies refer to demonstrable
behaviors stemming from combinations of knowledge, skills, and atti­
tudes (KSAs), and leading to overall superior job performance (Boyatzis,
1982, Spencer and Spencer, 2008). Hence, a set of competencies acts as a
mediator between specific job requirements and the capabilities of in­
dividuals. A ‘competency model’ is thus a combination of competencies
that describes the knowledge, skills, and characteristics necessary to
play a given role by precisely highlighting what is relevant and essential
for effective performance (Pickett, 1988; Martone, 2003). Competency
models provide the basis for differentiated criteria measurement and
help investigate different aspects of performance, promoting a more
sophisticated understanding of the factors underlying job performance
(Sliter, 2015). When these competency models are matched with orga­
nizational goals, they help to determine the performance standards
S.V. Shet and V. Pereira
Fig. 2. Competencies for Industry 4.0.
against which to evaluate an individual’s efficacy and achievement in a
specific position as well as the performance of a team and a firm ( Claus
and Wiese, 2019; Silva and Ribeiro, 2020; Asree et al., 2010; Levenson
et al., 2006). We argue that the successful adoption and practice of I4.0
requires managerial competencies from a human resources (HR)
perspective.
3. Methodology
Research on the managerial competencies related to I4.0 is novel and
has therefore hitherto produced limited literature. Hence, due to the
exploratory nature of this research, we took a systematic literature re­
view approach (Fig. 1), scanning the literature by screening all the
relevant articles found in the indexed Web of Science (WoS) database.
We chose the WoS’s indexed articles because they are peer reviewed and
are thus endowed with high credibility within the academic literature.
We employed content analysis as an objective, systematic, and quanti­
tative method suited to describe a corpus of literature (Chatha et al.,
2015). A content analysis discourse is structured, systematic, rule-based,
and theory-driven, and is hence robust, valid, and reliable. It encourages
researchers to “step back from their individual trees in order to assess the
entire forest of knowledge generation” (Williams and Plouffe, 2007, p.
408). The first step in content analysis involves the identification and
quantification of certain words or content in each text. This quantifi­
cation is usually used to explore usage and is focused on determining the
frequency of specific words or content (Hsieh and Shannon, 2005,
Kondracki et al., 2002).
We scanned the WoS database for papers relevant to our analysis in
February 2021. Our use of the search term ‘Industry 4.0’ returned 1,008
articles—including conference proceedings and editorial reviews—­
spanning the years from 2006 to 2021, which we then tabulated in
spreadsheets. From the initial search results, we shortlisted the relevant
papers based on the procedure outlined by Chatha et al. (2015). We
removed 157 articles from our initial data set as they were not in English
or had no abstract. We thus compiled a final list of 851 articles suited to
examine the concept of Industry 4.0 through content analysis, then
identifying the key themes related to I4.0 found in each paper. To obtain
relevant, robust, reliable, and valid content, we asked the following key
questions as quality assessment criteria throughout our systematic
review:
1 What technologies featured in previous Industry 4.0 research?
2 Does the paper highlight the implementation of I4.0?
3 Does the paper discuss and identify the human resource challenges linked
to I4.0?
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Technological Forecasting & Social Change 173 (2021) 121080
In terms of our data analysis, we performed summative content
analysis as a qualitative approach suited to analyze the above data
(Hsieh and Shannon, 2005). This analysis started with identifying and
quantifying specific words or content found in each text with the pur­
pose of understanding their contextual use. This quantification was not
an attempt to infer meaning; rather, it was intended to explore the usage
of the words in different contexts. The initial codes formed a summative
approach to qualitative content analysis, leading to latent content
analysis being performed on the aggregate codes, which involved the
process of interpretation of the identified content (Holsti, 1969). More
specifically, in this context, we were endeavoring to uncover the un­
derlying meanings of the words or content in the form of I4.0 compe­
tencies (Catanzaro, 1988; Morse & Field, 1995).
When we extracted the key relevant emerging themes from each
paper, the first author acted as coder beginning with the first paper,
while the second author started coding from the last paper in the sample
and worked his/her way, backward to the first. On completing the
identification of the key themes, both coders examined any differences
in coding and agreed on the final themes by discussing them. Subse­
quently, both coders identified the second-order codes by summarizing
all the first-order codes in order to arrive at the final frequency and
consistency of the emerging themes. The coders sought to answer
questions such as “If these are the characteristics of I4.0 in regard to the HR
challenges encountered for successful implementation, on which competencies
should managers focus to implement I4.0?” Based on this activity, the
coders finally identified the aggregate coding, which led to the key
emergent themes, as key managerial competencies for I4.0. This process
was not straightforward, as it involved considerable discussions leading
to more in-depth questions such as “Does this qualify as a competency?”,
“Is it a necessary competency?”, and “Is it too generic or is it a critical
competency?”. The qualitative discussions held between the two coders
throughout this stringent process further led to inter-rate reliability. To
ensure greater reliability, we also checked the data by means of a simple
percentage agreement (Hayes and Hatch, 1999) and Cohen’s kappa
coefficient (Landis and Koch, 1977).
We further submitted the instrument to selected experts—from the
power, composites, electrical, steel, automotive, supply chain, and
automation industries—for critical reviews and remarks using Lawshe’s
content validity ratio formula (Lawshe, 1975, Shet et al., 2019), which
classifies content as useful, relevant, and average in relation to its val­
idity. In order to enable these experts to endorse the relevance and
criticality of I4.0 competency for managers, we provided them with our
competency definitions and behavioral indicators (see appendix 2—list
of competencies). Based on their suggestions, we made the necessary
changes to our competency model.
S.V. Shet and V. Pereira
4. Analysis and findings
Our systematic review—followed, as detailed above, by expert
opinion feedback as a validation—resulted in identifying a robust set of
14 managerial competencies (Fig. 2) as crucial human resource ‘people
capability’ indicators in the adoption of Industry 4.0. In the following
section, we discuss each of these.
4.1. Agility
In relation to operating within a I4.0 context and in addition to being
proactive, managers should possess skill sets that enable them to cope
with the constant organizational change brought about by the constant
demands and challenges of automation. Agility is thus a highly desirable
skill and competency that helps managers to work on different activities
simultaneously and to switch between them (Christofi et al., 2021;
Matthiae and Richter, 2018). Pereira et al. (2021) recently investigated
investments made in agility strategies by Indian information technology
industry and offshoring firms in order to overcome the global financial
crisis. Such activities provide evidence of the global acceptance of firms
to invest in agility as a strategic competency for their employees. It is
thus necessary for managers to possess agility skills and competencies in
order to make critical decisions suited to facilitate automation.
In I4.0, managerial agility plays a crucial role in an organization’s
ability to change its internal and external environments (Barlette and
Baillette, 2020). Quick changes are highly desirable and necessary as
they help in attaining a competitive edge while competing with other
organizations in the same domain. Agility also helps managers utilize
the knowledge and ideas they receive from customers and bring out
innovative products (Kahle et al., 2020). In I4.0, manufacturing firms
gather information and customer feedback through digital surveys or
reviews and develop suitable production strategies (Shukor et al., 2020).
As agility is a major managerial competency, managers must constantly
strive for improvement (Ghadge et al., 2020). By drawing unique lon­
gitudinal evidence drawn from European firms, Pereira et al. (2019)
recently investigated dynamic capabilities, agility, and knowledge
management within emerging market multinational enterprises
(EMNEs), again portraying the importance of agility as a key compe­
tency that enables firms to monitor their competitors more closely, then
using the information gathered for data analysis, algorithms, and
forecasting.
4.2. Entrepreneurial intelligence
Entrepreneurial intelligence indicates a manager’s ability to define
goals or agendas for his/her team and to motivate it sufficiently to
achieve them. I4.0 places great importance on the intellectual capabil­
ities of an organization’s employees (Kruger and Steyn, 2020; Shet et al.,
2021). Hence, managers endowed with entrepreneurial intelligence
should be capable of identifying any problems and opportunities present
in their manufacturing organizations. Such managers can then combine
the creative resources found in their organizations to work out these
issues collaboratively and create better products.
Among the major components of entrepreneurial intelligence is lin­
guistic intelligence, which denotes the ability to use effective words to
communicate with co-workers. In the context of I4.0, this managerial
competency is crucial for the expression of complex ideas and the cre­
ation of sound business plans (Sun, 2018). Entrepreneurial intelligence
thus further helps in selling ideas effectively to any investors interested
in the organization.
Likewise, interpersonal intelligence is a component that represents
the capacity to understand the talents and weaknesses of others. This
competency can help managers recruit the right people for their com­
panies’ long-term success (Dzwigol et al., 2020). In contrast, intraper­
sonal intelligence is a manager’s capability to understand his/her own
positive and negative traits in order to select the most appropriate
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Technological Forecasting & Social Change 173 (2021) 121080
advisors and partners (Shearer, 2020). Entrepreneurial intelligence also
encompasses kinesthetic intelligence that plays a major role in building
a positive image on the minds of the people about the organization.
4.3. Business acumen
With the advent of I4.0, there is a greater demand for managers who
possess business acumen as a major managerial competency (Jewell
et al., 2020). There is a need for business leaders who are equipped to
operate in an ever more technology-driven world that is becoming more
and more reliant on automation. The technology available today can
unlock and sustain business capabilities that were previously unimag­
inable. Organizations that operate within the I4.0 context require
managers who can strategize, prepare roadmaps, exercise control, and
take risks while preparing proactively for an eminently
technology-oriented future (Digilina et al., 2017).
Managers with business acumen can understand and adjust when
operating within the highly volatile business environments that char­
acterize I4.0. This competency thus helps managers in other aspects of
business, such as leadership development and financial performance.
Likewise, it should also be mandatory for I4.0 managers to become
knowledgeable in various business aspects and components and learn
how these can work together. Due to the high level of automation found
in I4.0, managers should thus have sufficient knowledge of the business
process and of the extent to which automation can be applied (Ermo­
lina, 2019). Managers with business acumen can gain deeper insights
into the profit margins, cash flows, and stock prices that affect com­
panies on a quarterly, half-yearly, and annual basis. This competency
also helps managers to gain a better understanding of the technological
tools available to optimize various business processes (Galushkin et al.,
2019).
4.4. Design thinking
Design thinking is intrinsically linked with I4.0, as it helps organi­
zations understand their customers and redefine their problems. Design
thinking is a critical managerial competency that helps in coming up
with innovative solutions to complex business problems. As such, it
could help solve any issues that are either ambiguous or not clearly
defined within a particular domain (Ochs and Riemann, 2017). Vrontis
et al. (2021), forthcoming] offer an examination of the importance of
Artificial Intelligence, Robotics, Advanced Technologies, and Interna­
tional Human Resource Management, conducting a comprehensive and
systematic review of such aspects, suggesting an agenda for future
research, and clearly identifying the explicit need for future human re­
sources to possess competencies such as design thinking.
I4.0 is disrupting organizations and the ways in which consumers
have traditionally engaged with them. I4.0 is also transforming the way
in which different technologies are used in organizations and aug­
menting value creation (Oberer and Erkollar, 2018). We envisage that,
with design thinking as a major competency, managers can gain insights
into business operations and define plans of action by being proactive
and promoting new and innovative services and products.
We further posit that, with the help of design thinking, managers will
be capable of more accurately gauging customer needs. Likewise, design
thinking may help firms in building the desired business models when
faced with volatile and changing business environments. As I4.0 relies
extensively on automation and technological tools, managers must
design, build, and test prototypes to comprehend the complexities
associated with their practical implementation (Barata et al., 2018).
With the advent of new technologies such as AI, data analysis, and
3D modelling, the design thinking process has become faster and more
accurate (Dilan and Aydin, 2019). New technologies are thus helping
managers analyze the complex microelements of their businesses. One
such instance is represented by SWOT analysis, which makes use of data
and algorithms to help understand an organization’s strengths and
S.V. Shet and V. Pereira
weaknesses. Algorithms help managers to predict future risks and devise
the strategic actions needed to mitigate them.
4.5. Disruptive leadership
With the introduction of I4.0, the modern world has moved beyond
the basic process automation that was typical in organizations. Today’s
businesses rely more on cognitive automation, which leverages tech­
nologies like robotics and AI. In I4.0, disruptive leadership (Patel, 2020;
Hou et al., 2017) is a managerial competency, as it ensures that busi­
nesses are ready for a comprehensive digital transformation. By
engaging in disruptive leadership, managers can ensure that the relevant
structure is in place and that the right talent is being recognized and
hired. Organizations must be equipped to attract, retain, and fine-tune
digitally-talented people. Leadership will have to continue to trans­
form itself in the future, as businesses are currently highly disruptive and
digitally driven (Kao, 2018).
Disruptive leadership, as a competency, could aid managers in
gaining a better understanding of digitization and help them fathom
how it ultimately influences their organizations. Managers will also be
capable of gauging the various opportunities and likely threats they will
have to face with enhanced automation and digitization. When imple­
menting I4.0 for the first time, many organizational changes are
required. Thus, a business leader who is proactive and open to change
would be an ideal choice, thus reaffirming disruptive leadership as a
critical managerial competency, especially in I4.0.
Disruptive leadership is thus a necessary managerial competency
given the rapid changes faced by businesses, the leadership of which
should be able to take risks by applying innovative ideas. Likewise, in
I4.0, leaders need to have a clear vision of the future. Managers should
be mindful of the key aspects of their businesses and be able to maintain
collaboration among their teams by sufficiently motivating them.
4.6. Collaborative mind-set
The success of I4.0 depends largely on a collaborative mind-set that
includes the willingness of managers to listen to their co-workers across
organizational levels (see Majchrza & Wang [1996] on breaking the
functional mind-set in process organizations). I4.0 is not limited to the
introduction of technologies like AI and the IoT into organizations; it
encompasses the wider meaning of collaboration between enterprises to
create a technology-driven ecosystem. With collaboration as a major
managerial competency, organizations will be capable of fully exploit­
ing the benefits of digitalization (for arguments on the importance of
‘collaborative networks’ in I4.0, see Villalba-Diez et al. (2019).
Apart from technical acumen, managers should emphasize the need
for characteristics like empathy, kindness, and openness, as well as the
willingness and ability to understand the perspectives of others. Eisen­
berg and Witten (1987) spoke of reconsidering openness in organiza­
tional communication, very early on, and we argue that the same applies
for I4.0. Thus, managers who seek and identify these characteristics in
employees can have a positive impact on their organizations. I4.0 re­
quires employees to work with a collaborative mind-set, as different
individuals have distinct skill sets. As mentioned above, earlier studies
affirm that working with individuals with different perspectives or skill
sets ultimately yields better ideas and outcomes (Eisenberg and Witten,
1987). A collaborative mind-set also helps in creating new learning and
growth opportunities, also in terms of soft skills (Cotet et al., 2017), as
working collaboratively motivates individuals to learn more and to
become productive as learning becomes relatively uncomplicated.
4.7. Problem solving & decision-making
I4.0 uses automated systems to achieve high productivity and effi­
cacy through human collaboration with robots, digital performance
management, remote control, and work knowledge automation
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Technological Forecasting & Social Change 173 (2021) 121080
(Ghadimi et al., 2019). The digital integration of humans with tech­
nology in manufacturing processes requires managers to understand the
relationships between processes and information flows in seeking solu­
tions for specific problems arising from this collaboration.
These managers should act as mediators in order to enable the
integration of social interactions (in relation to issues with people, sys­
tems, technology) and decision-making processes (using data-driven
approaches). For example, this integration can be achieved by devel­
oping smart systems based on the implementation of the IoT and big
data analytics in order to achieve the real-time exchange of data be­
tween various manufacturing processes, thus facilitating managerial
problem solving and decision-making (Leusin et al., 2018). The effective
analysis, evaluation, and implementation of this data exchange should
enable managers to enhance operational safety, work processes, and
maintenance in manufacturing organizations. It could also help improve
the utilization of resources and offer better reliability to decision-makers
(see Villalba-Diez et al. (2019), who argued for the possibility of
enhancing Industry 4.0 lean management problem-solving behavioral
patterns by using EEG sensors and deep learning).
4.8. Research orientation
Present-day manufacturing industries must ensure the high quality
of their products to retain their competitive edge in the market and
satisfy increasing consumer requirements. I4.0 facilitates quality man­
agement through concepts like the IoT, smart factories, and CPS. How­
ever, many companies are still struggling to successfully implement I4.0
in their manufacturing systems despite the opportunities for consistent
development it provides (da Silva et al., 2020). A productive synergy of
its related technologies is required for their successful implementation
in the manufacturing industry. Managers should thus possess the
research skills and knowledge required to successfully integrate these
technologies in manufacturing.
Research orientation assists in evaluation of context within high
performance manufacturing (HPM). The isolated concepts of I4.0 asso­
ciated with the flexibility, and adaptability provides competitive
advantage (Fantini et al., 2020). Although HPM can be integrated into
I4.0 through advanced IT techniques, it only forms the basis of I4.0,
which uses several techniques for quality management. Managers need
to possess the research skills needed to find new solutions suited to
transform and integrate these production techniques, leading to high
performance and enhanced efficacy.
4.9. Connected technology architecture
The application of I4.0 to industrial automation has challenged the
technological architecture of the entire manufacturing system. The
streamlining of concepts with I4.0, like big data analytics or CPS, re­
quires high connectivity and the synchronization of communications.
I4.0 era managers should know how to build a connected technology
architecture, as the related technologies operate simultaneously to
deliver business results (Lins and Oliveira, 2020). Furthermore, man­
agers should be able to understand what manufacturers are trying to
accomplish and where any bottlenecks are. A connected technology
architecture enables the tackling of these areas, one at a time.
Down the line, managers can implement the appropriate network
and automation architecture along with CPS, and thus benefit their
companies (Trunzer et al., 2019). Managers can employ a connected
technology architecture (CTA) to model high-level design and satisfy
stakeholder requirements. The dual usage of this architecture includes
the design, implementation, and estimation of the cost of a project and
the validation of its requirements. In this context, we envisage that
managers should be highly skilled in addressing any failures that might
occur during the integration of technologies in CTA.
S.V. Shet and V. Pereira
4.10. Data analytics
Data analytics comprises data-driven intelligence and techniques
like AI and big data (Santos et al., 2017, Shet et al., 2021). These
techniques are applicable to activities throughout a product’s lifecycle,
value chain, and disposal—such as ideation, prototyping, development,
maintenance, production, and data ecosystem management—thus
enabling innovation and facilitating logistics (Zonta et al., 2020). In
I4.0, data analytics is relevant across the entire integrated technology
lifecycle and the value dimensions of the various integrated technologies
(Nguyen et al., 2020).
As data analytics are reshaping design and production approaches,
managers should acquire analytical skills, which can help them to con­
nect machines, people, and materials in real-time so that a virtual image
of the manufacturing process can be generated on the system. They can
integrate in I4.0 production and procurement techniques like just-in-
time (JIT) in order to minimize inventory and stocks of raw materials,
which can be procured with a real-time click of a mouse (Hofmann and
Rüsch, 2017). They can integrate supply management, CRM promo­
tional interfaces, and logistics in JIT to ensure the synchronization of all
these aspects. AI, alongside robotics and machine learning, can help
create a value chain of ‘goods produced to order’ in order to deliver
customized and high quality goods to consumers. In I4.0, this entire
value chain includes data drawn from the procurement, manufacturing,
and sales phases (Gottge et al., 2020).
4.11. Project leadership
Project management and leadership, as a career, has manifold di­
mensions in the I4.0 paradigm (Guzmán et al., 2020). Traditional project
management and leadership strategies are being transformed because
I4.0 requires managers and leaders to confront many challenges and
changes in their jobs. These include the automation and digitization of
manufacturing processes, interfacing equipment with software, and
connecting different departments within the manufacturing domain.
Other concerns include collecting and evaluating big data streams,
providing data to machine builders and suppliers, monitoring cloud
platforms, and conducting predictive maintenance of the IoT with
augmented and virtual reality. The manufacturing environment has
become interoperated and automated, with smart factories operating by
processing big data, the IoT, and cyber-physical systems in real-time
through cloud computing (Kiraz et al., 2020).
To ensure their firms’ competitive advantage, managers are required
to plan and execute many integrated projects (Benitez et al., 2020).
Project managers and leaders need to focus on the specific aims and
goals associated with the diversified components of I4.0. This has led to
the automation of those tasks and processes—such as back office and
data entry—that do not require any design and analytical skills. It has
also led to the streamlining of corporate structures—which were pre­
viously based upon hierarchical functions—to a project- or
network-based organizational structure. This implies that the integra­
tion of I4.0 into the manufacturing processes requires a sophisticated
project change management procedures suited to deal with any resis­
tance put up by those human resources who face a revolution in their
working methods (Glistau et al., 2018).
4.12. Robotic process automation
The digitization of data has led to their storage at unprecedented
levels. This has transformed the face of industry in a fully connected
world. Nevertheless, such data are, in general, unorganized. Managers
can solve this issue by implementing robotic process automation (RPA)
(Fragapane et al., 2020). RPA employs cognitive robots for automation,
which can execute commercial procedures without human intervention.
Managers can implement RPA for processes related to principle-based
tasks that do not require human discretion, such as back office ones.
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Technological Forecasting & Social Change 173 (2021) 121080
RPA does not require the dismantling of existing systems, thereby
facilitating their incorporation into current business processes. For
example, RPA, along with AI, can help in leveraging any unorganized
data through advanced analytics in order to yield valuable and useful
outcomes for enterprises (Longo et al., 2017). The horizontal and ver­
tical integration of companies, departments, and functions has become
more cohesive due to the evolution of data integration networks and
automated value chains. Thus, we posit that managers can use RPA as a
catalyst to enable manufacturers to enhance their productivity, fulfil
consumer expectations, and continuously drive product innovation at
low costs.
4.13. Digital intelligence & modelling
I4.0 has often been referenced and linked in relation to the techno­
logical development that has led from embedded systems to Computer
Production Systems (CPS) (Lin et al., 2018). Such development repre­
sents the integration of I4.0 with AI, big data, and cloud computing.
Managers need to upskill and possess competencies related to data in­
telligence as this can help them establish intelligent object networking
along with the independent process management needed to interact
with the real and virtual worlds, thereby taking new perspectives for
manufacturing procedures (Marques et al., 2017). Thus, managers can
use 3D printing, sensor techniques, robotics, nanotechnology, and
drones to transform and accelerate industrial processes and make them
more flexible.
I4.0 requires automated solutions suited to the creation of highly
autonomous and cognitive outcomes. In this regard, AI, robots, and
sensor techniques have the potential to enhance automation and accel­
erate the implementation of flexibility and individualization. The use of
AI to plan driverless routes in warehouses and factories and reduce the
cost and time involved in supply chain management thus becomes a
possibility, thus generating novel design and construction solutions by
integrating human beings and machines at the point of service. Man­
agers can thus use CPS to incorporate smart machines endowed with
augmented intelligence that can interact with one another in order to
execute unique and non-repetitive tasks. For example, managers can
adjust manufacturing strategies and monitoring requirements to opti­
mize production by these smart machines (Manavalan and Jayakrishna,
2019).
4.14. Sustainability
Several studies on I4.0 have indicated that sustainability is crucial for
smart factories. According to the Brundtland report (1987), sustainable
development aims at meeting the requirements of the present without
compromising the capability of future generations to meet their needs
(Luthra et al., 2018). Sustainability combined with I4.0 represents an
opportunity to create sustainable smart enterprises. Sustainable
manufacturing includes the use of various technologies related to
real-time data processing and data analytics in order to promote sus­
tainable development. For example, the implementation of sustainable
technology in the food industry helps to improve efficacy and support
research, production, design, quality control, and sustainable
manufacturing (Singh et al., 2019).
This is also true for agricultural production, as evidenced by climate-
smart agriculture (Kumar et al., 2021). This leads to the development of
Agriculture 4.0, which features the use of data generated by devices,
machines, and equipment to the end of simulating scenarios that opti­
mize the use of natural resources for agricultural processes and signifi­
cantly influence the agricultural supply chain. Among the sustainable
I4.0 technologies employed in the recycling industry is the use of 3D
printing to enhance efficiency and flexibility and to reduce lead-time
and costs in order to achieve a more sustainable production. These
technologies enhance an organization’s capability to manufacture more
complex products and ensure zero loss by automating its processes
S.V. Shet and V. Pereira
(Dalmarco et al., 2019). Thus, sustainability considerably impacts the
consumption of raw materials by minimizing the losses related to the
manufacturing processes, which, in turn, decreases any environmental
impacts and improves the green aspect of sustainability (Ogbeibu et al.,
2021)
5. Discussion
As detailed above, by performing a robust content analysis and
relying on expert validation, we identified 14 competencies needed to
succeed in I4.0. Some of the technologies that assist in the adoption of
I4.0 are additive manufacturing, smart sensors, augmented reality, the
IoT, AI, cyber-physical systems, cyber security, cloud manufacturing,
and big data analytics. These technologies provide big data suited to the
processing, analysis, and evaluation of operational and business de­
cisions. Hence, to be successful, managers working in I4.0 require
specialized skills.
Several developed and technologically advanced countries—e.g.,
Germany, France, Sweden, and Japan—have initiated policies aimed at
supporting the implementation of I4.0. However, emerging
manufacturing economies are yet to adopt any initiatives at the policy
level (Reischauer, 2018). The manufacturing ecosystem found in
developed economies, especially in relation to the automotive sector, is
dependent on suppliers based in emerging countries such as China and
India; hence, the successful adoption of I4.0 would be felt globally
throughout these countries. Thus, organizations are driven and will need
to strive to employ a hybrid workforce working on a common platform
with diverse skills in, among other fields, computer automation,
embedded electronics, power electronics, data science, information
technologies, and mechanical engineering. While management frame­
work maturity models are aimed at analyzing the state of preparedness
of an enterprise for the implementation of I4.0, a detailed managerial
competency model will help the workforce identify any gaps and ensure
that the Industrial organizations meets the capability requirements at
the job level. The results yielded by our analysis thus portrays how the
widespread implementation of technology and the endowment of em­
ployees with the right competencies are critical barriers that need to be
addressed for the successful adoption of I4.0.
Our study was aimed at filling a gap in the adaptation of existing
manufacturing technologies in order to map the implications and com­
petencies required for I4.0. It addressed the concern that the existing
management models are inadequate for I4.0 and thus need to be sup­
ported by well-defined human capital requirements and competencies.
Therefore, considering the implications for research and practice, we
envisage that society, academic institutions, HR managers, and
manufacturing, operations, and supply chain practitioners and scholars
will find our study beneficial. In particular, our study contributes to the
existing knowledge by using human capital theory to bridge the gap
between theory and practice in emerging manufacturing technologies.
Overall, this work sheds light on three relevant aspects of industry
and the workforce: a workforce architecture with new behaviors, a term
to embrace the human capital of the future, and a typology suited to
reference the competences required for I4.0. Given the disruptive chal­
lenges posed by I4.0 on different scales and levels (i.e., business models,
manufacturing processes, and the economy), it is necessary to corre­
spondingly upgrade the workforce at various relevant levels (i.e., tech­
nical, psychological, and social). Therefore, we propose a set of
managerial competencies 4.0 as a holistic shift in terms of the capabil­
ities, education, and innovativeness that a workforce should possess in
the I4.0 era. Our reasoning is that future workforces will need to be
highly adaptable, resourceful, resilient, and interdisciplinary in order to
interact and collaborate in the industrial market, as detailed in the
following sections.
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Technological Forecasting & Social Change 173 (2021) 121080
5.1. Industry 4.0 and the future of work
We argue that I4.0 can generate job prospects by creating new
employment opportunities, particularly in the Science, Technology,
Engineering, and Mathematic (STEM) domain. The corresponding
enhanced productivity can create new jobs across the industrial value
chain (Pejic-Bach et al., 2020). Research confirms that, while technology
has the effect of minimizing employment prospects in some sectors, it
also brings about the simultaneous emergence of new businesses,
innovative and newer goods, and services linked to economic growth
and new markets, which, in turn, gives rise to new job opportunities. In
this context, we expect I4.0 to soon transform the nature of jobs,
workplaces, and workforces (Mashelkar, 2018), wherein digitalization
and automation will lead to the replacement of some existing jobs with
new ones that will require the skills, knowledge, and competencies we
identified.
Hence, we posit that those routine jobs pertaining to processing,
measuring, and recognizing patterns will be more vulnerable than those
linked to IT and automation. We further argue that automation and the
use of robots will make unskilled workers redundant and that the
advancement of I4.0 may eventually lead to a gradual increase in the
skill deficit of the unskilled workforce. Scholars, consultants, and re­
searchers have confirmed that digitalization and computerization lead
to an increase in skill demand diversification. For example, the Boston
Consulting Group has predicted that I4.0 may generate more than
100,000 new employment prospects in the construction and mechanical
engineering sectors by the year 2024 (Görmüş, 2019). Consequently, the
loss of unskilled jobs may be counterbalanced by the generation of jobs
for a highly I4.0-ready skilled workforce.
In support of these arguments and in the above context, the World
Economic Forum (WEF) anticipates an increase from 16% to 27% in the
ratio of new professionals to the total number of jobs by 2022, while the
proportion of job losses to total employment will decrease from 31% to
21% (WEF 2018). We further argue that the ongoing COVID-19
pandemic has already not only forced businesses to increasingly rely
on existing technology, but has hastened the rate of innovation and
bandwidth of new forms of technology. In this regard, Kuziemski and
Misuraca (2020) portrayed AI governance in the public sector through
three case studies from the cutting edge of automated decision-making
in democratic settings. According to McKinsey 2018, the employment
opportunities related to retail, manufacturing, supply chain, and food
services will be those most vulnerable to the shift towards I4.0.
McKinsey estimated that the introduction of personal computers has led
to the displacement of 3.5 million employment opportunities while, at
the same time, resulting in the creation of 19.2 million new jobs in the
US alone (Wong, 2019). The evidence suggests that computers with
rule-based programming will perform tasks of a non-repetitive nature,
while robots will handle repetitive ones. We however believe that such a
shift will not affect those tasks that involve unscheduled physical labor.
Thus, I4.0 will certainly cause the replacement of rule-based tasks
with jobs that require human intellect. Scholars envisage that the new
jobs to emerge due to I4.0 will include control system engineer, vali­
dation engineer, automation engineer, data scientist, robotics engineer,
IT solution architect, project manager, and drone data coordinator
(Flores et al., 2020). The implication of this state of affairs is that, as a
result of technical advancements, unskilled workers will have to adapt
and engage in tasks involving social and creative cognitive skills
(Rainnie and Dean, 2020). Further, it could then be deduced that jobs
will involve small components of highly skilled and competent work and
effort in support of global and digital products through the imple­
mentation of I4.0 technologies in the manufacturing sector.
S.V. Shet and V. Pereira
6. Conclusions, implications, and future research directions
6.1. Managers
The conventional administrative leadership role played by man­
agers, which depended mostly on command and control (Wesselink
et al., 2017), is now undergoing change. With the advent of I4.0, man­
agers now share and distribute the decision making process throughout
their organizations through a transition from a central authority to in­
dividual teams (Dzwigol et al., 2020). Managers are now expected to
undergo relevant training in digital programs with the primary aim of
becoming accustomed with rapidly changing technologies. The imple­
mentation of I4.0 requires managers to be proficient in contemporary
skills such as operational management, people management, and tech­
nology integration (Frank et al., 2019).
In addition to these, other skill sets required for managers include the
ability to build strategies for the re-skilling and redeployment of any
talents already present in their organizations. Managers should be
capable of repurposing their employees’ talents in response to the rapid
transformation of the job demography due to automation (Shet, 2020).
Leaders and managers should be capable of thinking proactively and to
find alternative pathways for worker engagement (Agolla, 2018). More
specifically, managers should first deconstruct the existing jobs based on
their related activities and identify any needed individual tasks. Next,
they should reassess such jobs and determine an appropriate method to
automate the identified tasks. Subsequently, they would need to
reconstruct the jobs based on relevant data and compare and map them
in relation to the technology and talent available in their organizations.
The final step would involve an analysis of the skill sets needed for future
technologies and the narrowing down of the skills appropriate for the
jobs needed and planned in their organizations (Oberer and Erkollar,
2018).
Managers should also manage the smoothest possible integration of
technology within the workforce (Haseeb et al., 2019). In doing so, they
should analyze the individual elements affected by automation in their
organizations. Likewise, they should build a talent pool and devise a
plan for an alternative work model through the adoption of innovative
technologies and tools (Sony and Naik, 2020). In addition to this,
managers should investigate different hiring methods suited to identify
the essential skills relevant to the changing post-I4.0 work environment.
Post I4.0 implementation, managers endowed with newly acquired
competencies will move out of their conventional job roles and adopt
new ones (Závadská and Závadský, 2020). Their workloads would thus
be significantly reduced by the adoption of AI in the decision making
process (Yunus, 2020). Thus in a post I4.0 world, leaders who have
internalized these managerial competencies will have the necessary
skills to better manage their organizations when faced with disruptive
innovation challenges. Likewise, the relevant managerial competencies
will help in identifying the right talent in the disruptive job market and
help place key people in appropriate job roles. Managers with the right
sets of competencies will further ensure that critical managerial de­
cisions include data analysis, thus leading to accurate and calculated
predictions (Shamim et al., 2016). To summarize, we can then posit that
I4.0 creates techno-centric managers geared to have business, organi­
zational, and societal impacts, as these involve the development of
technical managerial competencies and are further facilitated by the
possession of behavioral competencies such as collaboration,
open-mindedness, humility, empathy, and encouragement (Ustundag
and Cevikcan, 2017).
6.2. Organizations
A major benefit reaped by organizations from supporting I4.0 com­
petencies is the standardization of managerial behaviors, which can be
analyzed, measured, and assigned to job roles in organizations. The
entire business process is thus significantly improved by the adoption of
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Technological Forecasting & Social Change 173 (2021) 121080
the managerial competencies relevant for I4.0 (Tortorella et al., 2019).
By implementing I4.0, organizations understand that managerial com­
petencies need to evolve at a rapid pace to keep up with the level of
automation. By taking on board and investing in these managerial
competencies, organizations can integrate technology and data into
their business, leading to critical decision making (Gökalp et al., 2017).
Key competencies such as digital intelligence, AI development, and al­
gorithms practice (Vinodh et al., 2020) thus help managers in the pro­
cess of decision-making, resulting in a reduction of both human errors
and biases.
Those managers who possess competencies that encompass critical
thinking, business acumen, innovation, creativity, and adaptability will
be able to influence the learning curve in their organizations. Such
relevant managerial competencies will help leaders understand the need
for learning through the creation of a dynamic organizational culture
(Horňáková et al., 2019). Hence, if an organization creates and promotes
a learning culture in the workplace, its employees will feel the need to
keep up with the pace and update their knowledge and skills to remain
competitive. For example, as a result of competencies such as a collab­
orative mind-set, an organization can become more diverse and inclu­
sive. People from varied genders, ethnicities, and capabilities may be
included in an organization with the help of better talent and perfor­
mance management (Muscio and Ciffolilli, 2020) suited to meet I4.0
goals.
6.3. Society
We envisage that the rolling out of I4.0 and of its associated mana­
gerial competencies will cause a shift in the overall learning culture of
communities and societies. For example, to keep pace, educational in­
stitutions will need to proactively update their curricula to equip stu­
dents with the necessary skillsets and competencies. Universities are
already catering for competencies like computational intelligence,
research skills, business acumen, lean project management, and
disruptive leadership in their management curricula (Tvenge and Mar­
tinsen, 2018). An organizational culture of shared responsibilities is
emphasized, as participants from every segment of the society are
included in the workforce. Managerial competencies such as computa­
tional intelligence and automation ensure that menial repetitive labor is
significantly reduced (Cabrita et al., 2018, Gášová et al., 2017). With the
rolling out and implementation of I4.0, the focus shifts from the physical
to intellectual capabilities of employees, thus promoting the inclusion of
differently abled employees.
In summary, we posit that new technologies trigger certain en­
hancements in the quality of individual lives and in the overall welfare
of society (Soni et al., 2021). As has already been established, techno­
logical development is the main driving force behind the global econ­
omy; thus, to implement I4.0 effectively, we require new research
methods, advanced solutions applied in the economy, facilities suited to
monitor these solutions, and the means to find potential implementa­
tions. Employee support and the enhancement of their skills and com­
petencies are essential to bring this scenario to fruition.
6.4. Promoting sustainability
Sustainability is currently the most significant business objective, as
evidenced by the United Nations Sustainable Development Goals
(SDGs). As a contributor to those SDGs, I4.0 can reconcile the aims of
sustainability and industry. The UN SDGs for 2030 highlight technical
development through the transitioning of conventional techniques into
intelligent machines, albeit not at the expense of the sustainability of the
industrial economy (Bag et al., 2021). The integration of AI, Machine
Learning (ML), and other advanced technologies are to be implemented
across various sectors like supply chains, manufacturing, and distribu­
tion channels in order to have a significant effect on the environment,
resulting in a reduction in pollution, the emission of greenhouse gases,
S.V. Shet and V. Pereira
Fig. 3. Conceptual Framework for Industry 4.0. (Source: Authors’ interpretations and compilation).
and energy consumption, thus increasing profitability (Jabbour et al.,
2018).
I4.0 connects technology with resources and skills to promote sus­
tainable benefits like zero emissions, low costs, and social equality. I4.0
can mitigate the environmental impact of a process, product, or service
using digital footprint data and traceability analysis. It also leverages the
efficiency of functions in the form of decreased resource consumption by
enterprises. Studies have revealed that I4.0 is deeply associated with
energy efficiency, thereby leading to the mitigation of climate change
and the promotion of a sustainable consumption of energy. The I4.0
paradigm aims to integrate digital techniques with commercial pro­
cesses in order to boost efficiency and develop new business models. We
argue that all this can be made possible by a workforce and management
that possess the relevant I4.0 competencies.
Researchers have claimed that, besides the economic, social, and
ecological dimensions, the IIoT is beneficial to the triple bottom line—i.
e., technical integration, social context, and data and information (Issa,
Lucke, & Bauernhansl, 2017). Moreover, the human-machine interface
in IIoT reduces energy consumption. Consequently, factories would
become I4.0 compliant and more efficient. Our argument is that I4.0
supports the implementation of sustainability across the industrial
economy.
6.5. Future research directions
Research on the workforce management aspects of I4.0 is nascent;
there is thus a tremendous opportunity for engineering, business man­
agement, and social science researchers to advance the discussion from
the human capabilities perspective. We highlight the immediate atten­
tion needed by these identified areas as an avenue for future research.
More research is required on linking I4.0 with academia to ensure the
required skill sets and competencies for a future workforce. In
addressing this, key questions arise. How can universities develop I4.0
competencies amongst their students? What curricula will lead to the
development of these competencies, as an outcome of education? What
pedagogical methods are required to develop these competencies? How
do academic institutes collaborate with industry to ensure meeting its
demand –supply in the form of managerial capabilities? With Germany
taking lead in the I4.0 research with academia-industry partnerships,
how do other countries attempt to meet the I4.0 capability requirements
from the human resource perspective? These research questions provide
enormous opportunities to develop I4.0, not only in regard to micro
level talent but also to the macro level strategies of talent development
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Technological Forecasting & Social Change 173 (2021) 121080
for I4.0. While we attempted to validate these competencies for I4.0 as
theoretical constructs in our study, future research should operation­
alize them with scale development. Measuring the dimensions of these
constructs by means of a survey questionnaire in order to assess the
relevant managerial competencies would provide a research opportu­
nity to assess the managerial competency gaps, and to correlate such
competencies with other research constructs in operations, managerial
behaviors, and human resource management.
The application of I4.0 will be widespread, especially in HRM
functions such as recruitment and performance assessment. Thus, the
people management questions linked to I4.0 could include the
following. How can talent equipped with these managerial compe­
tencies be hired? What selection approaches are required to assess job
suitability? How can organizations create Learning & Development
(L&D) interventions suited to develop these multifaceted competencies
amongst managers? How can we develop talent using this model at the
micro, macro and meso levels? How can organizations identify indi­
vidual and collective performance in regard to these competencies? How
can we assess any gaps in these competencies at the individual, collec­
tive, organizational, or industry levels? Also, how can we address these
gaps to develop the relevant I4.0 capabilities at each level? Thus, HRM
and organizational management researchers and practitioners need to
conduct applied research on I4.0 workplace applications. There are
multiple areas that need exploring from the organizational behavior or
work psychology perspectives. Related questions could include the
following. What impact do I4.0 competencies have on managerial, team,
and organizational effectiveness? What influence do these competencies
have on individual career trajectories, job performance, self-efficacy,
and adaptability? How does the collective demonstration of these
competencies enhance competitive advantage? Will the adoption of I4.0
managerial competencies specifically benefit a particular organization,
industry, or country?
From the technology adoption perspective, the following relevant
questions arise. What are the factors behind the adoption of these
competencies? What are the technological, environmental, organiza­
tional, and people-specific factors involved? Researchers from IS, IT,
industrial engineering, and operations management thus have an op­
portunity to include these managerial competencies in their I4.0
research questions. We propose a final question from the perspective of
public policy administration and governance. How can governments
form policies aimed at the development of the relevant competencies in
workforces?
As a multi-disciplinary domain, I4.0 will offer enormous research
S.V. Shet and V. Pereira
opportunities in multiple domains—e.g., engineering, business man­
agement, and social sciences—and to different stakeholders; hence, we
propose a conceptual framework (Fig. 3), which could form a basis upon
which to extend human capabilities research from an OB, HRM, or
Organizational Performance perspective.
In conclusion, our study elucidates the evolution of managerial
competencies for I4.0. By conducting a systematic review of the litera­
ture spanning the last 15 years, triangulated and coupled with expert
opinions, we established a competency model for I4.0. We then pro­
posed 14 managerial competencies—i.e., agility, entrepreneurial intel­
ligence, business acumen, design thinking, disruptive leadership,
collaborative mind-set, problem solving & decision-making, research
orientation, connected technology architecture, data analytics, project
leadership, robotic process automation, digital intelligence & modelling,
and sustainability—as crucial to I4.0. Given the current debates on the
adoption of I4.0 and the associated human resources (HR) challenges,
this paper represents a good reference for industry, academia, and policy
makers to address the competency gaps hindering the effective and
successful implementation and rolling out of I4.0.
Declaration of Competing Interest
The authors declare that they have no conflict of interest.
Supplementary materials
Supplementary material associated with this article can be found, in
the online version, at doi:10.1016/j.techfore.2021.121080.
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Dr. Sateesh V. Shet (PhD) is an academic with School of Business Management, NMIMS
University in Mumbai, India. He is certified competency assessor of Assessment Centre. He
has worked in the areas of Performance management, capability building and organisa­
tional effectiveness. His research interests are Competency Management, Human resource
analytics, Job Performance, Emerging Technologies in Workforce Management and
Organizational values. His research is published in Journal of Business Research, Techno­
logical Forecasting and Social Change and Journal of Intellectual Capital etc.
Prof. Vijay Pereira, (PhD, United Kingdom) is Full Professor of International and
Strategic Human Capital Management and Head of the Deapartment of the People and
Organizations Department at NEOMA Business School, Reims Campus in France. He is also
an adjunct Full Professor at the University of South Pacific (USP) Fiji. Professor Pereira is
the Associate Editor (Strategic Management and Organization Behavior) for the Journal of
Business Research and the Global Real Impact Editor for the Journal of Knowledge Man­
agement. Professor Pereira has unique experience in industry, consulting and academia. He
has a track record of attracting funding and has published widely, in over 100 outlets,
including in leading international journals such as the HRM US, Academy of Management
Perspectives, Academy of Management Discoveries, Journal of Business Ethics, Journal of World
Business, International Journal of Information Management, International Journal of Research
in Marketing, British Journal of Management, International Journal of HRM, Journal of Busi­
ness Research, Business History, International Marketing Review, Journal of International
Management, International Business Review, Long Range Planning, Applied Psychology: An
International Review and International Journal of Production Research, among others. Pro­
fessor Pereira has guest edited close to 20 special issues in top tier journals and has pub­
lished 12 books. He is currently on the editorial and advisory board for the journals
Production and Operations Management, Journal of Management Studies (Both listed in
Financial Times), International Journal of HRM, Asia Pacific Journal of Management, Asian
Business & Management Journal and South Asian History and Culture. Professor Pereira is the
elected Vice President of the Academy of International Business (Middle East and North
Africa) and the Secretary of the Indian Academy of Management (an affiliate of the
Academy of Management, US)