Beyond the Hype: Do Industry 4.0 Competencies Improve Job Performance? Empirical Evidence from the Omani Public Sector

Abstract

The Fourth Industrial Revolution (Industry 4.0) is transforming the workplace and increasing the need for employees to acquire new skills to remain effective, flexible, and productive within their organizations. While existing research suggests that Industry 4.0 skills positively influence employee performance, empirical evidence from the public sector and non-Western regions remains limited. This study fills that gap by exploring how three key Industry 4.0 competencies—Collaboration, Critical Thinking, and Stay Relevant-affect Job Performance in the Omani public sector. It also examines how Leadership Support moderates these relationships. The research is based on Socio-Technical Systems Theory, Human Capital Development Theory, the Resource-Based View, and Contingency Theory. Using a quantitative cross-sectional approach, data were collected through an online questionnaire from 130 employees across various Omani ministries and government agencies. The three competency constructs were modeled as second-order reflective constructs: Collaboration included Customer Orientation, Developing People, Communication, Building Inclusivity, and Influence; Critical Thinking encompassed Creative Thinking, Decision-Making, Sense-Making, Problem-Solving, and Transdisciplinary Thinking; Stay Relevant involved Adaptability, Digital Fluency, Global Perspective, Learning Agility, and Self-Management. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM), with 10,000 bootstrap resamples and a 90% confidence level, following established methods for variance-based SEM. The results confirmed that the measurement model demonstrated good reliability and validity. Consistent with theoretical expectations, all three competencies showed positive links to Job Performance. Regarding Leadership Support's moderating role, the results indicated a targeted effect: it significantly strengthened the positive impact of Collaboration on Job Performance, whereas its influence on Critical Thinking and Stay Relevant was not statistically significant. The study adds to existing knowledge by being among the first to empirically test this set of Industry 4. 0 competencies in a non-Western public sector context, illustrating that frameworks developed for Industry 4.0 can produce meaningful performance benefits even in complex institutional environments—though such effects depend on organizational support and leadership conditions. Practically, the findings emphasize the need to focus on developing collaboration skills, enhancing leadership practices, updating performance management systems to recognize Industry 4. 0 behaviors, and creating organizational environments that facilitate the effective application of Critical Thinking and Stay Relevant competencies to improve measurable performance outcomes.   Keywords: Industry 4.0 Skills; Competencies; Job Performance; Collaboration; Critical Thinking; and Stay Relevant; Leadership Support.