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Cultural diversity and employment growth : Moderating effect of the recent global financial crisis

Grillitsch, Markus LU and Tavassoli, Sam LU (2018) In Australian Journal of Management 43(4). p.632-652
Abstract

This article analyses the effect of cultural diversity on employment growth, considering the recent global financial crisis (GFC) as a moderating factor. In doing so, we developed competing hypotheses based on Blau’s theory of heterogeneity versus an alternative perspective which combines the resource-based view (RBV) with social identity theory (SIT). We empirically test such theories using a unique longitudinal dataset comprising the population of all firms in Sweden between 2003 and 2012. We find support for the latter hypothesis, that is, the relationship between cultural diversity and employment growth is inverted U-shaped, which is even more pronounced during/after the GFC. We discussed the implications of these findings for other... (More)

This article analyses the effect of cultural diversity on employment growth, considering the recent global financial crisis (GFC) as a moderating factor. In doing so, we developed competing hypotheses based on Blau’s theory of heterogeneity versus an alternative perspective which combines the resource-based view (RBV) with social identity theory (SIT). We empirically test such theories using a unique longitudinal dataset comprising the population of all firms in Sweden between 2003 and 2012. We find support for the latter hypothesis, that is, the relationship between cultural diversity and employment growth is inverted U-shaped, which is even more pronounced during/after the GFC. We discussed the implications of these findings for other contexts. JEL Classification: M14, M51, E24, G01

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Diversity, employment growth, financial crisis, firm performance
in
Australian Journal of Management
volume
43
issue
4
pages
632 - 652
publisher
SAGE Publications Ltd
external identifiers
  • scopus:85048862372
ISSN
0312-8962
DOI
10.1177/0312896218765260
language
English
LU publication?
yes
id
b1915aad-bb21-4a83-9537-c74410e90b5a
date added to LUP
2018-07-06 11:16:42
date last changed
2019-08-14 04:19:41
@article{b1915aad-bb21-4a83-9537-c74410e90b5a,
  abstract     = {<p>This article analyses the effect of cultural diversity on employment growth, considering the recent global financial crisis (GFC) as a moderating factor. In doing so, we developed competing hypotheses based on Blau’s theory of heterogeneity versus an alternative perspective which combines the resource-based view (RBV) with social identity theory (SIT). We empirically test such theories using a unique longitudinal dataset comprising the population of all firms in Sweden between 2003 and 2012. We find support for the latter hypothesis, that is, the relationship between cultural diversity and employment growth is inverted U-shaped, which is even more pronounced during/after the GFC. We discussed the implications of these findings for other contexts. JEL Classification: M14, M51, E24, G01</p>},
  author       = {Grillitsch, Markus and Tavassoli, Sam},
  issn         = {0312-8962},
  keyword      = {Diversity,employment growth,financial crisis,firm performance},
  language     = {eng},
  number       = {4},
  pages        = {632--652},
  publisher    = {SAGE Publications Ltd},
  series       = {Australian Journal of Management},
  title        = {Cultural diversity and employment growth : Moderating effect of the recent global financial crisis},
  url          = {http://dx.doi.org/10.1177/0312896218765260},
  volume       = {43},
  year         = {2018},
}