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

Author

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  • Markus Grillitsch

    (Department of Human Geography & Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund University, Lund, Sweden)

  • Sam Tavassoli

    (School of Management, RMIT University, Melbourne, VIC, Australia; Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund University, Lund, Sweden)

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

Suggested Citation

  • Markus Grillitsch & Sam Tavassoli, 2018. "Cultural diversity and employment growth: Moderating effect of the recent global financial crisis," Australian Journal of Management, Australian School of Business, vol. 43(4), pages 632-652, November.
    • Handle: RePEc:sae:ausman:v:43:y:2018:i:4:p:632-652
    DOI: 10.1177/0312896218765260
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    Cited by:

    1. Husam Aldamen & Keith Duncan & Simone Kelly & Ray McNamara, 2020. "Corporate governance and family firm performance during the Global Financial Crisis," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(2), pages 1673-1701, June.
    2. Christophe J. Godlewski & Hong Nhung Le, 2024. "Family ties and firm performance empirical evidence from East Asia," Post-Print hal-04435944, HAL.
    3. Chieh-Peng Lin & Meng-Keng Tsai, 2020. "Strengthening long-term job performance: The moderating roles of sense of responsibility and leader’s support," Australian Journal of Management, Australian School of Business, vol. 45(1), pages 134-152, February.

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    More about this item

    Keywords

    Diversity; employment growth; financial crisis; firm performance;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • G01 - Financial Economics - - General - - - Financial Crises
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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