Sustainable Human Capital for Gen Z: The AMO Model Approach in the Disruption Era

Abstract

The objective of this research is to analyse the impact of Ability, Motivation,
and Opportunity (AMO) on sustainable human capital strategies with human
resource competitiveness as a mediating factor, focusing on Generation Z in
Indonesia. A quantitative method was applied along with an explanatory survey
approach. Respondents completed a formal online questionnaire based on their
employment status as Gen Z workers across Indonesia. Because the population size
was unlimited, Hair’s formula (10×25 statement items) was used, resulting in a sample
size of 250 respondents. SmartPLS 3.0 was used for SEM analysis of the data. Results
show that capability and opportunity strongly affect human capital sustainability,
both directly and indirectly, whereas motivation affects it solely indirectly through
competitiveness. Competitiveness acts as an essential mediator, enhancing the impact
of AMO on enduring workforce results. The research emphasises that sustainable
human capital cannot be attained by enhancing ability, motivation, or opportunity
separately, but instead necessitates competitiveness as the fundamental mechanism.
This study improves the AMO framework by incorporating competitiveness into
human capital strategy, providing fresh perspectives for both theory and practice,
especially in getting Indonesia’s Gen Z workforce ready for a future shaped by
innovation and digital change.