<![CDATA[This study analyzes the influence of the implementation of digital technology on the development of employee skills with the transition to Industry 5.0 as a mediator in the Banten Provincial DPUPR. The mixed methods approach was applied through a survey of 144 respondents and interviews with 13 informants. Quantitative data were analyzed using PLS-SEM assisted by SmartPLS 4, while qualitative findings were used to clarify statistical results. The implementation of digital technology has a negative effect on employee skill development (β=−0.241; t=3,053; p=0.002), but has a positive effect on the transition to Industry 5.0 (β=0.713; t=16,242; p=0.000). The transition strongly improves employee skills (β=0.956; t=16,009; p=0.000) while mediating the positive influence of digital technology (β=0.681; t=9,980; p=0.001). This pattern indicates competitive mediation. Digitalization that is not accompanied by user readiness can create an adaptation burden. On the contrary, human-centric, collaborative, resilient, and sustainable implementation is able to turn technology into a means of strengthening employee competence.]]>
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