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.