Circular skillsets for the Fourth Industrial Revolution: optimising resource efficiency through technology and talent

Purpose The purpose of this study is to examine how skill development in Industry 4.0 can affect the Circular Economy (CE) business model, with the goal of ensuring that the CE business model maximises value co-creation to keep products and resources as reusable as possible. Design/methodology/approach The research design entails a qualitative study using a mixed-methods approach, which integrates bibliometric analysis. This study uses a mixed-methods approach, combining a systematic literature review, thematic analysis and semi-structured expert interviews. Its objective is to explore the skills necessary for organisations to harness Industry 4.0 and innovate sustainable CE models. Bibliometric analysis was used to identify publications and keywords in the field of CE and Industry 4.0. Thematic analysis was conducted to extract key concepts and themes from peer-reviewed articles. Subsequently, frameworks for Mapping Skills of Industry 4.0 and CE were proposed based on the key concepts and themes extracted from the thematic analysis. Findings This study’s findings close a knowledge gap at the nexus of skill development, Industry 4.0 and a sustainable CE. This study presents a conceptual framework based on the aforementioned connections that might assist organisations in realigning their management practices and strategies for future skill development related to CE’s business model deployment. This study identifies the need for “must-have” skills and “good-to-have” skills for the CE business model related to Industry 4.0. This study emphasises the importance of higher education institutions in redesigning curricula and educational approaches for building soft skills and technological abilities in accordance with the CE paradigm. The identification of “must-have” and “good-to-have” skills for CE business models related to Fourth Industrial Revolution technologies can inform organisations’ talent management strategies, employee training programs and skill development initiatives. Practical implications The research can inform policymakers and industry regulators in developing policies, guidelines and incentives that promote the adoption of 4IR technologies and CE principles while also addressing the associated skill development needs. Originality/value This study offers a novel and timely examination of the critical intersections between skill development for Industry 4.0 and the CE business models. The conceptual framework presented in this research provides a fresh perspective on optimising value co-creation within CE models by aligning human capital capabilities with the technological requirements. By identifying the “must-have” and “good-to-have” skills needed to support CE business models in the context of Industry 4.0, this study offers valuable insights to guide organisational talent management, employee training and educational curriculum redesign.