Strategic competency development for Industry 5.0 leaders: perspectives from the manufacturing sector

Abstract This paper aims to identify and define key leadership competencies required for Industry 5.0 in the manufacturing sector, emphasising the integration of advanced technologies with human-centric and sustainability values across different organisational levels. A two-round Delphi study was conducted with 30 manufacturing experts from multiple priority sub-sectors in Indonesia. Quantitative consensus was assessed using median ≥ 4.0 and IQR ≤ 1.0, complemented by Kendall’s W to measure agreement strength. The study generated a comprehensive Industry 5.0 Leadership Competency Framework consisting of five core dimensions: technical mastery, strategic leadership, people management, business acumen, and sustainability, supported by 24 validated competencies prioritised across senior, middle, and entry-level leadership roles. This study advances leadership theory by proposing a multilevel (macro-meso-micro) human-centric leadership model that integrates sustainability and ethical technological implementation, addressing a missing linkage in current Industry 5.0 literature. The framework guides manufacturing organisations in designing tiered leadership development pathways, performance evaluation instruments, and succession strategies aligned with Industry 5.0 transformation and sustainable operational excellence.