Designing A Smart Human Resource Development Framework for Productivity and Innovation in Industrial Systems

Abstract

This study aims to design a Smart Human Resource Development (HRD) Framework to enhance productivity and innovation in industrial systems within the Industry 5.0 context. The main problem addressed is the limited integration between digital HRD systems and innovation processes, which often weakens organizational adaptability and performance. Using a mixed-methods approach that combines quantitative analysis through Structural Equation Modeling (SEM-PLS) and qualitative validation through expert interviews, the research identifies the critical relationships among HRD, innovation capability, and industrial productivity. The novelty of this study lies in the formulation of a Smart HRD model that integrates digital learning systems, competency analytics, and innovation culture into one adaptive and data-driven framework. This model bridges human capability development with industrial transformation needs, reflecting a shift from traditional HRD practices toward intelligent, technology-supported management. The results reveal that HRD significantly influences innovation capability (β = 0.685) and industrial productivity (β = 0.312), while innovation capability also has a strong positive effect on productivity (β = 0.547). Additionally, innovation functions as a mediating variable, amplifying the indirect effect of HRD on productivity. In conclusion, the proposed Smart HRD Framework provides a sustainable foundation for building a competent, adaptive, and innovative workforce. It transforms HRD into a strategic, data-driven, and human-centered system, enabling industries to achieve higher levels of innovation, productivity, and resilience in the era of Industry 5.0.