VIRTUAL Manchester Livable Cities

Abstract

As cities and industries evolve under the pressure of digital transformation and sustainability imperatives, the role of Human Resource Management (HRM) is undergoing a profound shift. This study explores how HR functions within smart industrial firms are not only adapting to technological change but also actively contributing to the creation of more livable urban environments. Rather than focusing solely on infrastructure or digital tools, the research highlights the human dimension of smart transitions how people, skills, and organizational cultures are key drivers of urban innovation. Drawing on a dual approach that combines a PRISMA-based review of recent literature (2020–2025) and interviews with HR leaders from industrial companies in Europe, the study uncovers a set of emerging practices. These include the integration of artificial intelligence into HR processes, the participation of employees in city-led innovation projects, and the growing involvement of HR professionals in municipal governance structures. Despite these advancements, challenges persist particularly in aligning business priorities with public objectives, and in navigating the ethical and legal complexities of cross-sector collaboration. What emerges is a vision of HR as a strategic bridge between the private sector and urban policy. HR departments are no longer confined to internal workforce management; they are becoming active players in shaping the social and civic fabric of smart cities. The findings offer both theoretical insights and practical recommendations for organizations and policymakers aiming to align human capital strategies with inclusive urban development.