Human Capital and Readiness for Digital Innovation: The Mediating Role of Thriving at Work and The Moderating Role of Perceived Organizational Support

Background/ problem: Competition in the logistics and courier industry is growing increasingly intense, prompting state-owned service companies to consistently innovate, particularly in the application of technology. Objective/ purpose: This study proposed that thriving at work acts as a mediator in the relationship between human capital 4.0 and readiness for digital innovation, while perceived organizational support serves as a moderating factor. Design and Methodology: Data were collected from 302 managers across various branch offices of a logistics and courier company in Indonesia. The data were analyzed using PLS-SEM. Results: The results indicated that human capital 4.0 plays a significant role in increasing readiness for innovation through digitalization (b = .35, p = .00). Human capital 4.0 also has a strong positive effect on thriving at work (b = .73, p = .00). Additionally, thriving at work has a significant positive effect on readiness for digital innovation among multiple managers (b = .23, p = .00). Furthermore, the findings show that thriving at work moderates the effect of human capital 4.0 on managers' readiness for digital innovation (p = .00). However, perceived organizational support did not amplify the effect of human capital 4.0 on managers' readiness for digital innovation (p = .31). Conclusion and Implications: The study recommends that human resource practices should enhance support for managers and work creativity. Further, management should provide opportunities for development for each individual in order to boost their performance and productivity.