Human capital competitiveness model in the digital era of craft creative industry entrepreneurs

The purpose of this paper is to analyze a digital competency-based human capital competency (HCC) model in the 5.0 era. To achieve the purpose, it is important to integrate HCC with the dimensions of talent, flexibility, productivity, superior performance, and personal service. Digital competency covers the dimensions of information literacy, security, internal communication of digital content, and problem-solving. The idea is that digital competency has a positive impact on HCC. This study analyzed the relationship of each dimension according to the research model. The hypothesis was tested with representative data from 352 creative craft industry entrepreneurs, in 12 cities in the province of West Java, Indonesia. The analysis tool used was Smart PLS structural equation modeling with a disjoint two-stage approach. The findings suggest that the human capital competitiveness model requires digital competency support in the form of information literacy, security, and digital content. The overall results support the fact that digital competency has a positive influence on HCC. However, collaborative communication and problem-solving were found to be ineffective by creative craft industry entrepreneurs with no effect on HCC. The digital safety effect does not have a positive effect on superior performance. It was also found that digital content only affected talent, performance, and personal service. Overall increasing digital competence can be a solution for increasing HCC.