The Impact of Industry 5.0 Human Capital on Production System Performance: Evidence from Russian Metallurgy

Socially oriented digital transformation of the new wave is closely related to dynamic knowledge processes. Despite the conservatism towards innovation and technological progress in the Russian industrial sector, digital human capital associated with cyber-social systems will play an integral role in shaping the competitive advantages of companies due to the challenges of achieving employee well-being and shortages of skilled labor. The article aims to investigate the impact of organizational learning, employee Industry 5.0 knowledge, and basic digital competencies on manufacturing system performance in conventional industries using the case of metallurgy. Partial least squares structural equation modeling (PLS-SEM) is used to estimate path coefficients in models. The empirical base consists of the results of a survey of 2156 employees of eight Russia’s metallurgical enterprises undergoing digital transformation. The results confirm that Industry 5.0 competencies have a weak but significant effect on manufacturing system performance, while core competencies have no direct effect. Industry 5.0 knowledge predominantly derives from basic digital skills and advanced training initiatives. Consequently, conventional production systems of Russian enterprises are in the initial stage of transition to Industry 5.0, moderately adapting to practice the general knowledge and competencies of employees in the field of cyber-social systems, smart robots, and human-centric artificial intelligence.