Strategic Human Resource Management, Innovation, and Social Dialogue in the Fourth Industrial Revolution: The Case of Greek Pharmaceutical Multinationals

Abstract

This study examines how strategic human resource management (SHRM) practices in pharmaceutical multinational enterprises (MNEs) operating in Greece are influenced by digital innovation and social dialogue. Structured questionnaires were distributed to 82 participants across seven large pharmaceutical MNEs in Greece, using purposive and stratified sampling to capture perspectives from senior managers, middle managers, and specialized employees. Findings indicate that while digital tools are present in SHRM systems, their integration remains functional rather than strategic. Social dialogue mechanisms exist but exert limited influence on decision-making. The study proposes that SHRM models—economies like Greece (characterized by medium-level competitiveness performance)—must be recontextualized to account for organizational learning capacities, and the strategic alignment between innovation, management, and social dialogue. We suggest that MNEs in the pharmaceutical sector should invest in integrated SHRM systems that prioritize cross-functional collaboration, localized adaptability, and participatory governance.

1. Introduction

In an increasingly interconnected global economy, multinational enterprises (MNEs) face persistent challenges in managing human resources across diverse institutional, regulatory, and cultural environments [1,2]. Human Resource Management (HRM), once regarded primarily as a functional orientation, has evolved into a strategic driver of innovation, organizational agility, and sustained competitive advantage—particularly in knowledge-intensive sectors such as pharmaceuticals [3,4].

Although some scholars have begun to explore the contours of a potential Fifth Industrial Revolution, emphasizing human-centric and purpose-driven technological integration, this study focuses on the Fourth Industrial Revolution (4IR) [5,6]. The 4IR remains the most impactful transformation for current HRM systems in multinational enterprises, particularly in knowledge-intensive sectors like pharmaceuticals, where digital technologies are reshaping organizational practices within institutionally constrained environments [7,8].

Although digital HRM and innovation have received increasing scholarly attention, there is a lack of integrative frameworks that connect these domains within comparatively less competitive business ecosystems, such as those of Southern European countries like Greece [9]. Given its complex regulatory framework and significant innovation capacity, the Greek pharmaceutical sector appears underexplored, with current studies offering only partial insights. Existing models often examine Strategic Human Resource Management (SHRM), innovation, and social dialogue in isolation, overlooking the dynamic interdependencies, potential synergies, and tensions that emerge at their intersection within organizational transformation processes. This study addresses this gap by applying the Stra.Tech.Man framework (strategy–technology–management synthesis) to empirically investigate how innovation and strategic HRM interact in shaping adaptive capacity and participatory management in pharmaceutical MNEs in Greece. Therefore, the study investigates how these practices are embedded, adapted, or obstructed within the context of Greek pharmaceutical subsidiaries.

The analysis is guided by the following overarching research question: How do digital innovation, social dialogue, and institutional constraints interact to shape the strategic effectiveness of human resource management (HRM) in pharmaceutical multinational enterprises (MNEs) operating in Greece?

To address this central question, three interrelated sub-questions, each focusing on a distinct but complementary dimension of the research problem are investigated. First, it examines how digital innovation and social dialogue influence the design and implementation of SHRM practices in Greek pharmaceutical MNEs. Second, it explores how strategy, technology, and management practices are interlinked in these organizations, and how their integration supports adaptive and participatory HRM under institutional constraints. Third, the study considers the broader implications by analyzing how it affects the integration of Strategic Human Resource Management, innovation, and social dialogue. Based on empirical data from seven MNE subsidiaries, this study demonstrates that while formal structures for innovation and dialogue may exist, their strategic impact is often limited. Innovation tends to remain at a functional level, and social dialogue is frequently procedural or symbolic.

The remainder of the article is structured as follows: Section 2 outlines the theoretical foundations and hypotheses of the study. Section 3 presents the methodology, including sampling, data collection, and statistical analysis. Section 4 reports the main empirical findings. Section 5 discusses the implications of these findings for theory, policy, and practice. Section 6 concludes by summarizing the study’s contributions and suggesting avenues for future research.

2. Literature Review and Theoretical Framework

2.1. The Fourth Industrial Revolution and the Transformation of SHRM

The 4IR—marked by artificial intelligence, automation, digital platforms, and data analytics—has redefined the global HRM landscape, demanding greater organizational agility and innovation capability [10,11]. In knowledge-intensive and heavily regulated sectors such as pharmaceuticals, these dynamics have turned SHRM into a central mechanism for driving digital transformation, organizational resilience, and strategic alignment [4]. Rather than serving a purely administrative function, SHRM is increasingly viewed as a proactive, capability-building process that enables firms to respond effectively to technological complexity [12]. Within pharmaceutical MNEs in Greece, the implications of the 4IR are particularly acute due to the dual challenge of rapid technological change. The strategic integration of digital HR tools—such as algorithmic recruitment, learning platforms, and predictive analytics—can enhance responsiveness, but it also necessitates cultural transformation and trust-building. The effectiveness of SHRM in this setting hinges on its ability to act as a catalyst for digital integration while maintaining institutional legitimacy [13,14].

Hypothesis 1 (H1):

The extent of digital integration in SHRM practices is positively associated with perceived strategic effectiveness among pharmaceutical MNEs operating in Greece.

2.2. Institutional Duality and Local Adaptation in MNEs

Pharmaceutical MNEs operate under the dual pressures of global standardization and local adaptation [15]. While parent companies push for uniform HR policies, subsidiaries like Greece must navigate low levels of social trust [16,17]. These conditions challenge the implementation of SHRM and often result in hybridized practices that deviate from the parent firm’s intent. In such environments, the legitimacy of SHRM practices depends not only on alignment with corporate goals but also on their embeddedness within the local institutional context. Factors such as union influence, regulatory compliance, and informal networks shape the degree to which global HR strategies can be localized effectively. The capacity for strategic alignment, therefore, becomes a function not only of organizational intent but also of contextual fit [18].

Recent legal theory examines the underlying nature of organizational identity, strategic decision-making, and the legitimization of corporate practices. Within the legal framework of limited liability companies, the concept of legal subjectivity—whether a firm is conceived as a fictional legal construct or as a real, autonomous entity—is closely tied to the actions of physical individuals who act as executive organs of the firm [19]. The structural distinction between statutory bodies (e.g., general assemblies) and executive or managerial bodies (e.g., boards of directors or company managers) significantly influences how strategic decisions, including those related to SHRM, are enacted, legitimized, and received within different institutional contexts [11].

For MNE subsidiaries operating in Greece, such a legal distinction underscores the importance of aligning SHRM practices not only with corporate strategy but also with national legal norms regarding accountability, representation, and corporate agency. The effectiveness of SHRM depends also on how decisions are made and who is held accountable within the firm [18]. In this context, SHRM strategies are often operationalized through managerial agents at the subsidiary level, even as their design and strategic intent may originate from central corporate bodies located in different cultural environments. This dynamic heightens the relevance of local legal constraints and interpretative frameworks, which shape how global HR directives are interpreted, contested, or legitimized locally [18].

Like Greece, where corporate law and labour regulations may diverge from the assumptions of parent companies, such constraints must be carefully navigated. In addition, digital innovation in HRM—through platforms, analytics, and AI—is reshaping organizational structures and employee relations [19,20]. However, these technological shifts often occur without parallel developments in social dialogue or participatory governance, especially in countries with weak traditions of industrial structures compared for instance to their Western Europe counterparts. In the Greek pharmaceutical sector, social dialogue mechanisms remain largely formalistic, limiting their potential to contribute to strategic HR objectives [21,22]. Innovation in this context must therefore be assessed not only in terms of efficiency gains but also in terms of its capacity to foster meaningful employee participation and collective voice. Failure to integrate social dialogue into digital transformation may undermine organizational legitimacy and hinder innovation diffusion.

Hypothesis 2 (H2):

The effectiveness of SHRM in pharmaceutical MNEs operating in Greece is positively influenced by the integration of (a) locally adapted digital and innovative HRM practices that respond to national institutional specificities, and (b) participatory mechanisms such as social dialogue, which together support strategic alignment in the context of the Fourth Industrial Revolution.

2.3. Strategic HRM as a Catalyst

SHRM is increasingly framed as a platform for inclusive innovation, particularly in knowledge-intensive sectors [23,24]. Through practices such as distributed leadership, employee empowerment, and continuous learning, SHRM can align technological change with cultural transformation. However, in the Greek institutional context—characterized by hierarchical structures and low trust—such strategies often result in superficial compliance rather than deep behavioural change [25,26,27]. The potential of SHRM to function as a lever for participatory innovation thus depends on its systemic integration with organizational culture and strategic intent. In pharmaceutical MNEs, where regulatory compliance and market competitiveness must be balanced, SHRM must mediate between efficiency-driven innovation and institutionally bounded participation.

The Stra.Tech.Man framework [9] conceptualizes firm evolution as a synergistic and continuous alignment of three core domains: strategy, technology, and management. Drawing from systems theory [28,29], biological and evolutionary approaches to organizational dynamics, and socio-technical systems thinking [30], this framework posits that sustainable competitiveness arises not from discrete capabilities, but from the systemic coherence between these three interdependent elements. This dynamic interplay positions organizations as complex adaptive systems, rather than static configurations of isolated resources.

The Stra.Tech.Man framework diverges from dominant theoretical paradigms such as the Resource-Based View (RBV) and institutional theory. While the RBV [31] emphasizes the strategic value of internal firm resources that are valuable, rare, inimitable, and non-substitutable (VRIN), it has been criticized for its limited attention to the evolutionary and reconfigurative processes through which such resources are developed, especially under conditions of environmental turbulence [32,33]. Similarly, while the dynamic capabilities framework [34] attempts to overcome some of these limitations, it remains overly firm-centric, often abstracting from the institutional and technological embeddedness of firms [35].

In contrast, Stra.Tech.Man frames strategic renewal as a process of systemic recombination, in which innovation is not simply the application of new technologies, but the emergent result of ongoing internal realignment between strategic intent, technological infrastructure, and managerial logic. The emphasis is not on achieving “fit” as a static condition but on internal dialectics that enable organizations to adapt within evolutionary institutional constraints and stretch their adaptive capacity and competitive potential.

Moreover, the framework extends institutional theory by attributing agency to firms, particularly in path-dependent or underdeveloped institutional environments. Rather than portraying firms as passive recipients of coercive, mimetic, or normative pressures [36,37], Stra.Tech.Man promotes a constructivist view of agency, whereby firms act as institutional entrepreneurs [38], capable of strategically reconfiguring their institutional context through recombinative logic. This perspective is particularly pertinent in less advanced business ecosystem contexts such as Greece or Cyprus, where firms face challenges like institutional volatility, fragmented innovation systems, and regulatory uncertainty.

Despite its conceptual value, the framework remains underdeveloped and in need of theoretical refinement in several areas. First, operationalization has historically been limited due to the lack of standardized indicators for measuring coherence across the three domains. This gap has recently been addressed through the development of the Stra.Tech.Man Scorecard [39]—a diagnostic tool that combines qualitative and quantitative metrics to assess strategic-technological-managerial alignment. The Scorecard includes both subjective indicators (e.g., executive perceptions of internal synergy) and objective measures (e.g., innovation performance, HR adaptability), thus enhancing its analytical robustness [31].

Second, the framework’s generalizability remains constrained due to the predominance of Greek case studies. Preliminary applications in Cyprus suggest structural similarities, yet broader comparative studies (e.g., involving Portugal or Poland) are needed to validate the framework’s relevance in varied institutional environments.

Third, Stra.Tech.Man appears to lag behind in engaging with digital innovations that are increasingly discussed in organizational transformation literature, including capabilities related to digital platforms and algorithmic systems [40,41]. Recent adaptations of TECH-related instruments—such as questionnaires on digital maturity in HR practices—have enhanced the framework’s compatibility with HRM analysis, especially regarding data-driven decision-making and automated workforce management.

Importantly, the sectoral scope of Stra.Tech.Man has evolved. Originally tested in manufacturing, it has since been applied in ICT, energy, agrifood, and most notably, in pharmaceutical firms. This diversification strengthens the framework’s empirical foundation and reflects its applicability across heterogeneous industry structures.

Recent studies support the need for such integration. For instance, Marler & Boudreau [42] highlight the dual challenge and opportunity of digital transformation in HRM systems, particularly within educational and public sector contexts, while evidence from emerging economies shows how algorithmic HR systems can bolster organizational resilience and responsiveness to crises [43]. Incorporating these insights into Stra.Tech.Man could bridge its theoretical promise with the practical exigencies of contemporary HRM.

For pharmaceutical MNEs operating within the less advanced and more institutionally volatile business ecosystem of Greece, the Stra.Tech.Man framework is particularly relevant. These firms must simultaneously respond to technological dynamism and institutional inertia [44]. The framework conceptualizes adaptation not as linear change but as a dynamic recombination of strategic orientation, technological infrastructure, and managerial logic. Empirical applications show that firms with high internal alignment consistently outperform those with fragmented or siloed strategic structures.

Based on this perspective, the following hypothesis is proposed:

Hypothesis 3 (H3):

The internal coherence between strategy, technology, and management domains—as measured by the Stra.Tech.Man Scorecard—is positively associated with SHRM effectiveness in pharmaceutical MNE subsidiaries in Greece.

3. Materials and Methods

3.1. Strategic Relevance and Rationale for Selecting the Greek Pharmaceutical Sector

The inclusion of the pharmaceutical sector in this study is not incidental but stems from its pronounced strategic significance within the Greek socio-economic landscape. This section serves to justify the sectoral focus of the research by outlining its economic weight, societal impact, and institutional complexity—dimensions which directly inform the theoretical framing and methodological design of the study.

Economically, the pharmaceutical industry in Greece represents a critical pillar of national development. In 2022, it contributed approximately EUR 6.5 billion to the country’s GDP (equivalent to 3.2% of total GDP), while pharmaceutical exports reached EUR 2.8 billion in 2023, highlighting the international competitiveness of Greek pharmaceutical production [45]. The sector supports nearly 118,900 jobs—both directly and indirectly—and contributes EUR 1.8 billion annually in public revenues, reinforcing its fiscal significance [46].

From a societal perspective, the pharmaceutical sector exerts a substantial influence on public health outcomes. Pharmaceutical innovation has demonstrably extended life expectancy and improved the quality of life for individuals with chronic and life-threatening conditions. However, the sector also faces structural constraints, particularly regarding the sustainability of innovation and equitable access to new therapies. Policy mechanisms such as mandatory clawbacks and rebates, though intended for budgetary control, have generated disincentives for research investment and strained the financial viability of pharmaceutical firms operating in Greece [45]. The delayed availability of innovative medicines illustrates deeper systemic inefficiencies. Between 2019 and 2022, only 20% of newly approved drugs in the European Union were introduced to the Greek market—primarily due to protracted reimbursement procedures and bureaucratic complexity [46]. These barriers limit patient access to novel treatments and deter multinational companies from investing in the timely launch of new products.

On the organizational level, the sector presents a particularly fertile ground for examining the interaction between institutional constraints and managerial adaptation. Multinational pharmaceutical companies operating in Greece must align with both stringent regulatory frameworks and distinct national labour relations traditions. In this context, the Stra.Tech.Man framework—which emphasizes the interdependence of strategy, technology, and management—offers a useful lens for analyzing how HRM practices are being reshaped to meet local and global demands [47]. Moreover, innovation in the pharmaceutical sector extends beyond R&D into areas such as digital HRM tools, AI-driven performance management systems, and strategic workforce development. Although employee participation in corporate decision-making remains limited, there is growing integration of social dialogue mechanisms into governance structures—indicative of a broader institutional evolution.

3.2. Research Approach and Rationale

This study employs a quantitative, cross-sectional research design to examine the relationships among SHRM practices, innovation outcomes, and social dialogue mechanisms in pharmaceutical MNEs operating in Greece. The quantitative approach enables the objective measurement of latent constructs and their intercorrelations through validated statistical methods, thereby enhancing internal validity and generalizability. The pharmaceutical sector was selected due to its intensive innovation dynamics, which necessitate advanced HRM strategies. Moreover, multinational pharmaceutical firms play a critical role in both the Greek economy and the national health system, combining global best practices with local implementation—particularly in HR planning.

3.3. Data Collection Instruments

The primary data collection instrument was a structured questionnaire developed based on the literature review and aligned with the study’s research questions (see Supplementary File S1: The complete questionnaire). The instrument comprised two main parts and included exclusively closed-ended items, supporting the quantitative nature of the research. All items were rated on a 5-point Likert scale (1 = Not at all to 5 = Very much), allowing for structured quantitative analysis.

Part A—Demographic and Professional Characteristics: This section included questions regarding participants’ gender, age group, level of education, current job position, and years of professional experience in the pharmaceutical industry.

Part B—Research-Focused Items: This section included items specifically designed to quantitatively assess respondents’ perceptions across three key thematic areas relevant to the study. First, it examined the perceived influence of innovation and social dialogue on the overall effectiveness of SHRM. Second, it examined how the interconnection between strategy, technology, and management manifests within these firms in HRM planning and practice. Third, it assessed the degree to which digital innovation and employee participation are integrated into HRM processes in multinational pharmaceutical enterprises operating in Greece.

3.4. Data Collection Procedure

Data collection was conducted electronically via Online Forms during March–April 2025. The questionnaire was distributed to executives and employees of multinational pharmaceutical companies, particularly in departments related to HRM and administration. Prior to distribution, a pilot test with 10 participants was conducted to assess the clarity and coherence of the instrument. Adjustments based on participant feedback were incorporated into the final version.

3.5. Sample and Sampling

A purposive sampling strategy was employed to identify suitable multinational pharmaceutical firms and key personnel with experience in HRM and strategic operations. Within each company, stratified selection ensured representation across different hierarchical levels (e.g., senior management, middle management, and specialized employees), thereby capturing a diversity of perspectives.

The final sample consisted of 82 participants drawn from seven large multinational pharmaceutical firms operating in Greece. These companies represent a subset of the 46 multinational pharmaceutical enterprises currently active in the country, out of a total of 63 pharmaceutical firms affiliated with the Hellenic Association of Pharmaceutical Companies. Although not statistically representative of the entire sectoral workforce, the sample provides analytically robust and context-sensitive insights that are appropriate for the exploratory and theory-driven objectives of the study.

The target population was limited to HR-affiliated professionals within multinational pharmaceutical subsidiaries, rather than the broader workforce of approximately 118,000 employees across the full pharmaceutical value chain. The selection of participating firms was based on a set of predefined criteria aimed at ensuring analytical relevance. Eligible companies were required to demonstrate substantial size, international presence, and a stable operational footprint in the Greek market. Furthermore, they had to be actively engaged in innovation, participate meaningfully in social dialogue, and implement contemporary strategic HRM practices. A formal HR department with strategic responsibilities at the national level was a prerequisite, ensuring that participating firms had structured and mature HRM systems. A pilot test was conducted with 10 participants from diverse organizational levels and functions to evaluate the clarity and internal consistency of the survey instrument. Based on their feedback, minor adjustments were made to improve wording and flow.

The research followed all national and institutional ethical standards for non-interventional social research. Although formal ethics committee approval was not required under the applicable regulations, a comprehensive internal ethics protocol was implemented, covering data confidentiality, access control, and informed consent. The final questionnaire, based on established SHRM and institutional theory constructs, is available in the Supplementary Materials.

3.6. Data Analysis

All statistical analyses were conducted using spreadsheets. Initially, the data were numerically coded and screened for missing values to ensure the integrity of the dataset. Descriptive statistics, including means, standard deviations, and frequency distributions, were calculated to summarize the key variables under investigation. To test the research hypotheses, inferential statistical techniques were employed, with a focus on the Pearson correlation coefficient (r) to examine linear associations between the independent and dependent variables. Statistical significance was evaluated using two-tailed t-tests for the correlation coefficients, based on Student’s t-distribution with critical values, where α was set at 0.05 and the sample size was n = 82. The null hypotheses (H₀) were rejected when the calculated t-value exceeded the corresponding critical value, indicating statistically significant linear relationships. For example, in testing Hypothesis 2, a correlation coefficient of r = 0.676 produced a t-value of 8.20, which exceeded the critical value of 1.664, thereby supporting a significant positive association. All statistical tests were conducted at a 95% confidence level, and the assumptions regarding normality and scale level of measurement required for Pearson correlation were not violated.

3.7. Ethics and Approvals

This study adhered to ethical standards for social science research. Participation was voluntary and anonymous, and no personal or sensitive data were collected. Written informed consent was obtained electronically prior to participation. As the study did not involve vulnerable populations, sensitive topics, or medical interventions, formal approval by an institutional ethics committee was not required by the institution in which the study was conducted.

3.8. Methodological Reasoning

Beyond the general statistical framework outlined above, this study draws upon multiple classical and scientific methods of knowledge acquisition from legal and social science research traditions. These methods—analysis, synthesis, induction, deduction, comparison, and abstraction—played distinct and complementary roles throughout the various stages of the research process, contributing to conceptual clarity, logical coherence, and theoretical robustness.

A deductive approach was employed primarily in the formulation of hypotheses and empirical testing. Deduction allowed for the derivation of specific, testable hypotheses from established theoretical principles. For example, the relationship between global HR strategies and local effectiveness (H2) was grounded in institutional theory, which posits that legitimacy mediates adaptation outcomes.

4. Results

This section presents the findings of the quantitative analysis based on responses collected from executives working in multinational pharmaceutical companies operating in Greece. To enhance analytical transparency, the distribution of respondents by current job position is summarized as follows. The final sample of 82 participants comprised 40 managers (48.8%), 20 supervisors or team leaders (24.4%), and 18 directors (22.0%). An additional four respondents (4.8%) were specialized professionals, such as experienced HR officers and talent acquisition specialists. This composition reflects a balanced cross-section of organizational roles within the firms surveyed and ensures clear relevance to the study’s thematic focus.

This distribution reflects a solid representation across all hierarchical levels, ensuring that the survey captured strategic insights from senior leadership, managerial experiences from mid-level staff, and operational perspectives from supervisory and specialized roles.

Each subsection addresses a specific research hypothesis (H1–H3), providing a critical evaluation of the empirical evidence in support or refutation of each claim.

4.1. Digital Integration and Strategic SHRM Effectiveness (H1)

The empirical findings provide evidence of a positive association between digital integration and the strategic effectiveness of SHRM. The mean score for digital integration across surveyed pharmaceutical MNEs in Greece is 3.14/5, with particularly strong performance in the domain of HR analytics (M = 3.91) and moderate implementation in core digital HR functions, such as recruitment and training. These figures indicate a notable penetration of digital tools in operational HR practices.

Statistical analysis confirms a low but statistically significant positive correlation between digital SHRM integration (X) and perceived strategic HRM effectiveness (Y), with a Pearson correlation coefficient of r = 0.367 and a t-value of 3.53, which exceeds the critical value at the 95% confidence level (t = 1.664). As a result, the null hypothesis is rejected, supporting the existence of a statistically meaningful relationship.

Despite this significance, the data also reveal structural limitations that constrain the full strategic potential of digital tools. Transformative or participatory HR innovations (e.g., agile HR models, flexible work arrangements) exhibit notably lower mean scores (e.g., M = 2.97 for flexibility; M = 2.84 for trend integration), indicating that digital integration is primarily functional rather than strategically embedded. This is further evidenced by moderate levels of alignment between digital practices and overarching corporate strategy, highlighting a disconnect between implementation and strategic intent.

These findings are in line with prior research emphasizing the dual role of e-HRM as both an operational facilitator and a potential strategic enabler. Bondarouk and Brewster [19] underscore that digital HR tools must transcend administrative usage and be aligned with organizational strategy to yield sustainable competitive advantages. Hypothesis 1 is supported. The degree of digital integration in SHRM practices has a statistically significant positive effect on strategic HRM effectiveness in pharmaceutical MNEs operating in Greece. However, the impact remains modest and largely operational, underscoring the need for deeper strategic embedding of digital tools across HRM systems.

4.2. Local Institutional Adaptation and Social Dialogue as Moderating Factors (H2)

The quantitative analysis provides significant empirical support for Hypothesis 2, which posits that SHRM effectiveness in pharmaceutical MNEs in Greece is positively influenced by the dual integration of (a) localized adaptation of global HR strategies to the national legal-institutional context and (b) participatory mechanisms such as social dialogue.

Regarding local institutional adaptation, the findings reveal a moderate to high level of responsiveness to host-country institutional and socio-cultural specificities (M = 3.16/5). Contextual sensitivity is particularly visible in recruitment and selection practices (M = 3.32), with 36.6% of respondents confirming meaningful adaptation to the Greek labour market and regulatory environment. Furthermore, the correlation between global HR strategy (X) and perceived HRM effectiveness (Y) is r = 0.5531, and the t-statistic (t = 5.94) significantly exceeds the critical value (t = 1.664, p < 0.05), confirming a statistically significant relationship. These results indicate that global HR strategies are more effective when appropriately adapted to local institutional realities.

However, structural constraints within MNEs limit the full expression of local responsiveness. The strong influence of parent companies (M = 3.73) and the limited autonomy of local HR departments (M = 2.85) highlight a centralized decision-making structure. This centralization weakens local agency and reduces the scope for institutional embedding. In functional areas such as outsourcing (M = 2.62), alignment with national legal and social norms remains weak.

With respect to the second dimension of the hypothesis—the role of participatory mechanisms—findings are more nuanced. Although digital HRM practices show a statistically strong positive correlation with innovation outcomes (r = 0.676, t = 8.20, p < 0.05), the moderating effect of social dialogue remains limited. The average institutionalization score for social dialogue mechanisms is 3.00/5, reflecting moderate presence. Internal participatory mechanisms such as knowledge sharing (M = 3.33) and employee involvement in decision-making (M = 3.07) are somewhat established, yet more strategic or externally oriented forms—like union collaboration (M = 2.33), influence over outsourcing (M = 2.57), or talent acquisition (M = 2.80)—are significantly underdeveloped.

Only 2.4% of respondents reported a strong link between social dialogue and HR innovation, while the majority (45.1%) perceived a moderate link and 26.8% a weak one. This indicates that social dialogue is mainly perceived as a consultative rather than strategic mechanism, lacking the institutional depth required to amplify HRM outcomes in the context of digital transformation.

Hypothesis 2 is partially supported. Local institutional adaptation clearly enhances the effectiveness of global SHRM strategies. However, the second moderating factor—social dialogue—while present in some internal forms, lacks the strategic integration and institutional robustness necessary to act as a strong amplifier of SHRM effectiveness. Future initiatives should focus on deepening participatory structures and embedding social dialogue more strategically within the broader SHRM architecture of pharmaceutical MNEs in Greece.

4.3. Internal Coherence via the Stra.Tech.Man Framework (H3)

The empirical results provide robust support for Hypothesis 3, which posits that the internal coherence between strategic orientation, technological infrastructure, and managerial logic—as measured by the Stra.Tech.Man Scorecard—is positively associated with SHRM effectiveness in pharmaceutical MNE subsidiaries operating in Greece.

Statistical analysis confirms a moderately strong and significant positive correlation between internal coherence (X) and perceived HRM effectiveness (Y), with a Pearson correlation coefficient of r = 0.632 and a t-value of 9.41, which substantially exceeds the critical value at the 95% confidence level (t = 1.664). This allows for the rejection of the null hypothesis and validates the theoretical proposition that systemic alignment across the core Stra.Tech.Man domains enhances strategic HRM outcomes.

The mean score for perceived internal coherence is 3.08/5, suggesting a moderate but uneven implementation of the Stra.Tech.Man logic. More specifically, strategic tools—such as stakeholder engagement processes, benchmarking, and formalized goal alignment—appear more established, with over 50% of respondents reporting systematic use. Likewise, the technological domain—including digital HR platforms and data-driven decision-making—displays moderate maturity (mean ≈ 3.0), reflecting ongoing but incomplete integration of digital capabilities.

In contrast, the managerial domain of the framework emerges as the weakest link. Only 6.1% of respondents report full alignment across the three domains, and just 23.2% indicate active employee participation in strategic planning. This fragmentation inhibits the emergence of a cohesive SHRM architecture and undermines the transformative potential of Stra.Tech.Man. Furthermore, gaps in cross-functional collaboration and limited diffusion of participatory leadership practices suggest a shortfall in cultural coherence—an essential precondition for dynamic alignment.

Respondents acknowledged moderate benefits of internal coherence, particularly in terms of organizational resilience (mean = 3.04), but also pointed to significant challenges in applying the framework in an operationally integrated and participatory manner. These findings highlight the partial institutionalization of the Stra.Tech.Man model and its uneven translation into HRM practices. From a theoretical perspective, the data validate the core Stra.Tech.Man proposition: that dynamic internal alignment across strategic, technological, and managerial elements enhances adaptive capacity and SHRM effectiveness. However, in the empirical setting of Greek pharmaceutical MNEs, the framework’s practical impact is constrained by structural and cultural fragmentation.

Hypothesis 3 is partially supported. While there is clear statistical evidence of a positive association between Stra.Tech.Man coherence and HRM effectiveness, the limited integration—especially in the managerial dimension—restricts its full strategic potential. To unlock the transformative value of the framework, organizations must pursue deeper systemic alignment, focusing not only on tools and technologies but also on leadership practices, participatory governance, and cross-domain synergy.

5. Discussion

5.1. Innovation Dynamics and Social Dialogue: Limited Leverage in Strategic HRM (RQ1)

While global HRM literature increasingly emphasizes the catalytic role of innovation and participatory mechanisms in enhancing SHRM effectiveness [4,23], the present findings reveal a fragmented and superficial integration of these elements within pharmaceutical MNEs in Greece. Innovation is predominantly limited to digitization of HR processes—such as e-recruitment and administrative automation—rather than constituting a strategic transformation of HRM. This aligns with Vlados’ [48] finding that organizational immaturity in less advanced business ecosystem contexts restricts innovation to procedural rather than cultural or strategic domains.

Furthermore, social dialogue mechanisms remain largely symbolic. Although formally in place, they rarely enable substantive employee participation or negotiation. This proceduralism mirrors findings by Triantafillidou and Koutroukis [49], who describe social dialogue in Greece as a compliance-driven formality rather than a transformative organizational practice. In contrast to institutionalized systems of co-determination in countries like Germany or the Netherlands [50,51], Greek subsidiaries tend to replicate centralized, risk-averse, and non-dialogical HR models, undermining the potential for collaborative strategy formation and adaptive learning.

These findings expose a misalignment between global MNE directives and local implementation capacity. Subsidiaries are caught in a structural bind: they are expected to innovate and decentralize, yet remain embedded in hierarchical cultures with limited absorptive capacity for open HRM models.

5.2. The (Non-)Implementation of Stra.Tech.Man in Strategic Planning and Organizational Change (RQ2)

Although the Stra.Tech.Man framework was positively acknowledged by participants as a theoretically coherent model, empirical evidence suggests a substantial implementation gap. HRM practices in Greek pharmaceutical subsidiaries are still largely dictated by corporate headquarters, leaving minimal room for the co-evolution of strategy, technology, and management—the foundational principle of Stra.Tech.Man [9]. This is not merely a case of delayed adaptation but of structural incompatibility: the framework presupposes internal autonomy, feedback loops, and participatory governance—none of which characterize the operational reality of the studied organizations.

Compared to RBV [31] and institutional theory [37], Stra.Tech.Man offers a hybrid conceptualization that integrates endogenous capabilities with adaptive responsiveness. However, this synthesis fails to materialize in contexts where reflexive learning and internal coordination mechanisms are absent. The “Not-Invented-Here” and “Not-Shared-Here” syndromes observed in several subsidiaries [52] further illustrate a culture of knowledge hoarding and siloed practices, directly undermining any efforts toward integrated strategy-making.

5.3. 4IR, Digital Innovation, and Strategic Alignment in Institutional Rigidities (RQ3)

The advent of the 4IR has globally accelerated the convergence between digital innovation and strategic HRM [53]. Yet, in the Greek pharmaceutical sector, this convergence is only partial and largely technocratic. While digital tools—such as performance analytics, AI-based recruitment, and HR dashboards—have been adopted, they have not been embedded into broader strategic realignments of organizational culture or participatory HRM [54].

This results in what can be termed “nominal innovation”: the adoption of digital technologies without accompanying transformations in organizational behaviour or strategic direction. Employee participation remains limited, both in terms of decision-making influence and innovation co-creation. The findings here diverge significantly from international benchmarks where 4IR technologies are harnessed to foster agile teams, collaborative leadership, and cross-functional innovation ecosystems [52,55].

Institutional dualities exacerbate this misalignment. Greek subsidiaries face tensions between global strategic imperatives and local institutional constraints—such as rigid labour market structures, weak social dialogue mechanisms, and a pervasive culture of risk aversion. In such an environment, digital HRM becomes a surface-level adaptation rather than a strategic catalyst.

This suggests that 4IR-related transformations in HRM are not technologically determined but institutionally mediated. Without structural enablers such as distributed leadership, dialogic capacity, and a culture of internal reflexivity, digital tools cannot deliver strategic alignment.

5.4. Limitations and Directions for Future Research

This study is subject to several limitations that constrain the scope and generalizability of its findings. First, it focuses exclusively on pharmaceutical MNE subsidiaries operating in Greece. While this sector provides a valuable analytical lens for examining SHRM under institutional rigidity, its specificity limits the potential transferability of insights to other industries or national contexts.

Second, the study privileges managerial-level perspectives. Although this offers insight into formal strategy and organizational intent, it underrepresents the informal dynamics, resistance, and lived experiences of lower-tier employees. Future research should adopt a multi-level design that includes front-line staff and labour representatives to capture the full sociological complexity of HRM practices.

Third, the research employs a cross-sectional design, which restricts the ability to observe longitudinal patterns or establish causal relationships. Strategic transformations in SHRM, particularly those involving Stra.Tech.Man and digital technologies, are likely to evolve over time and require temporal depth to be fully understood.

Lastly, although the study applies qualitative methods that provide contextual depth, it lacks methodological triangulation. The absence of quantitative or computational approaches, such as mixed-method surveys, HRM analytics, or semantic coding software, limits the reliability and replicability of findings. Future studies should integrate mixed-method frameworks to enrich empirical depth and ensure analytical robustness. Such approaches would enhance the sociological richness of SHRM research by linking macro-strategic intent with micro-level employee agency and institutional embeddedness.

5.5. Practical Implications

The findings highlight the limitations of uncritically transplanting global SHRM models into institutionally rigid and culturally centralized environments, such as Greece. Strategic frameworks like Stra.Tech.Man—though conceptually robust—cannot yield meaningful outcomes without careful adaptation to local organizational realities. In the Greek pharmaceutical sector, structural centralization, risk-averse hierarchies, and symbolic rather than substantive forms of social dialogue act as systemic barriers to innovation.

For HR practitioners, the study highlights that genuine transformation in SHRM requires more than adopting digital platforms. Three key actions clearly stand out. First, establishing internal HR innovation councils with cross-functional teams—including employee representatives—supports the co-development of participatory HR solutions tailored to organizational needs. Second, introducing structured feedback mechanisms, like monthly “employee voice panels,” helps identify operational barriers early and fosters continuous improvement. Third, targeted training for mid-level managers in change leadership and collaborative decision-making promotes trust-building and inclusive communication throughout the organization.

For policymakers, the findings emphasize the need for targeted interventions beyond legislation. Providing financial incentives for firms that institutionalize social dialogue mechanisms, such as co-determination boards or innovation committees, is crucial. Public institutions should also actively support capacity-building programmes to strengthen employee representatives’ roles, especially in strategic planning and innovation decisions.

For academic researchers, this study operationalizes the Stra.Tech.Man model within a non-core economy and defines critical boundary conditions for its effectiveness. The findings suggest that the model’s applicability depends on three enabling factors: (1) organizational autonomy, (2) internal absorptive capacity, and (3) micro-level institutional affordances. Future research should explore how these factors interact dynamically across sectors and national systems.

6. Conclusions

This study investigated how SHRM unfolds within pharmaceutical multinationals operating in Greece, a semi-peripheral institutional setting marked by regulatory rigidity and centralized governance. Drawing on the Stra.Tech.Man framework, the analysis revealed a fundamental misalignment between strategic ambitions and on-the-ground HRM practices.

Although digital HR tools and social dialogue structures are present, they are frequently decoupled from core strategic processes. Digitalization is often functional rather than transformative, while social dialogue mechanisms remain underutilized and largely symbolic. These patterns point to structural and cultural constraints that inhibit the strategic potential of SHRM, particularly in environments lacking participatory infrastructures and learning-oriented cultures.

The empirical analysis supports all three hypotheses to varying degrees, offering distinct insights into the dynamics of SHRM in Greek pharmaceutical MNEs. Hypothesis 1 is supported, revealing that digital integration in SHRM practices is positively associated with strategic HRM effectiveness; however, the impact remains largely operational, with limited evidence of deeper strategic embedding. Hypothesis 2 receives partial support: while local institutional adaptation significantly enhances the effectiveness of global HR strategies, social dialogue mechanisms are only moderately present and function primarily in a consultative rather than strategic capacity. Finally, Hypothesis 3 is also partially supported; internal coherence among strategy, technology, and management—as measured by the Stra.Tech.Man framework—is positively linked to SHRM effectiveness, yet the managerial dimension remains underdeveloped, limiting the transformative potential of the model. Overall, the findings suggest that successful SHRM in institutionally constrained environments requires not only digital tools and global frameworks, but also participatory governance structures and localized strategic alignment. The research highlights that global HRM models assume institutional maturity and organizational autonomy, which are often absent in semi-peripheral contexts. Bridging the gap between aspiration and enactment requires more than importing frameworks, it calls for cultivating participatory architectures, adaptive leadership, and systemic alignment. Rather than a prescriptive model, Stra.Tech.Man should be seen as a diagnostic and developmental tool—one that helps organizations navigate institutional complexity by aligning their strategic, technological, and managerial domains in context-sensitive ways. Future research should explore how such systemic models can support inclusive and resilient HRM transformations in fragmented ecosystems. The study found that SHRM effectiveness in Greek pharmaceutical MNEs is shaped by digital integration, institutional adaptation, and internal coherence. Yet, unlocking their full potential requires stronger participatory infrastructures and deeper managerial alignment.