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Pls-sem multigroup analysis of industry 5.0 specific human capital performance in manufacturing companies

• Ilia Chernenko
• Veronika Zemzyulina

(2024). ECMS 2024, 38th Proceedings
Edited by: Daniel Grzonka, Natalia Rylko, Grazyna Suchacka, Vladimir Mityushev, European Council for Modelling and Simulation.
DOI: http://doi.org/10.7148/2024
ISSN: 2522-2422 (ONLINE)
ISSN: 2522-2414 (PRINT)
ISSN: 2522-2430 (CD-ROM)
ISBN: 978-3-937436-84-5
ISBN: 978-3-937436-83-8 (CD) Communications of the ECMS Volume 38, Issue 1, June 2024, Cracow, Poland June 4th – June 7th, 2024

https://doi.org/10.7148/2024-0043

Ilia chernenko, Veronika zemzyulina (2024). PLS-SEM multigroup analysis of industry 5.0 specific human capital performance in manufacturing companies, ECMS 2024, Proceedings Edited by: Daniel Grzonka, Natalia Rylko, Grazyna Suchacka, Vladimir Mityushev, European Council for Modelling and Simulation. doi:10.7148/2024-0043

Investigating complex processes of digitization using structural modelling, often assumes that researchers are dealing with heterogeneity, particularly regional, sectoral, or personal differences. Recent research has concentrated on addressing challenges of multigroup analysis (MGA) while estimating path coefficients in partial least squares structural equation models (PLS-SEM), however rarely dealing with more than two groups. This article aims to explore differences in the performance of basic and advanced digital competencies within the context of Industry 5.0 using a multigroup comparison of structural models across three regions in Russia, based on a sample of 1798 respondents. A proposed structural equation model includes reflective measures of learning environment, basic digital competencies, Industry 5.0-specific skills, and production system performance. To assess and compare model parameters, simultaneous MGA is conducted on the three regional groups using the non-parametric distance-based test (NDT). MGA is a conventional approach, however, NDT solid establishment in empirical literature is still a work in progress. The findings show that in highly digitalized regions the path coefficients linking basic digital competencies and Industry 5.0 skills are significantly higher. Furthermore, Industry 5.0 specific human capital have a significant positive impact on the performance of the production system.