THE ENHANCEMENT HUMAN CAPITAL COMPETENCY WITH DIGITAL INNOVATION TO SUPPORT THE NEXT-GENERATION AUTOMOTIVE INDUATRY IN THE EASTERN ECONOMIC CORRIDOR

Abstract

This research aims to study approaches to enhancing human capital competency through digital innovation to support the Next-Generation automotive industry in the Eastern Economic Corridor. A qualitative case study research methodology was employed, utilizing in-depth interviews and focus group discussions. Purposive sampling was used to select participants, including representatives from the industrial sector, local workers, educational institutions, and government agencies, for a total of 31 individuals. The collected data were analyzed using descriptive analysis. The findings reveal that the primary challenges in human capital development in this area are the shortage of highly skilled labor in digital and advanced technologies, such as artificial intelligence (AI) and automation, which are essential for the modern automotive industry. Additionally, there is a lack of collaboration between the education and industrial sectors, resulting in curricula that do not align with labor market demands. Furthermore, limited access to digital innovation for training poses a significant obstacle to workforce skill development. This research proposes strategies for human capital development through digital innovation, including the use of online platforms to provide convenient and flexible training access, virtual reality-based training to create realistic learning environments, and the establishment of collaborative networks among the industrial sector, educational institutions, and government agencies to ensure effective and sustainable human capital development. The results of this study offer practical benefits for formulating policies and strategies to develop human capital in the area to support the modern automotive industry in the digital age. Moreover, the findings can be applied to other regions to create ecosystems that foster human capital development and enhance the country’s competitiveness.