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

Grillitsch, M and Tavassoli, S 2018, 'Cultural diversity and employment growth: Moderating effect of the recent global financial crisis', Australian Journal of Management, vol. 43, no. 4, pp. 632-652.


Document type: Journal Article
Collection: Journal Articles

Title Cultural diversity and employment growth: Moderating effect of the recent global financial crisis
Author(s) Grillitsch, M
Tavassoli, S
Year 2018
Journal name Australian Journal of Management
Volume number 43
Issue number 4
Start page 632
End page 652
Total pages 21
Publisher Sage Publications Ltd.
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 contexts. JEL Classification: M14, M51, E24, G01
Subject Innovation and Technology Management
Keyword(s) Diversity
employment growth
financial crisis
firm performance
DOI - identifier 10.1177/0312896218765260
Copyright notice © The Author(s) 2018
ISSN 0312-8962
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