IDEAS home Printed from
   My bibliography  Save this paper

Cultural Diversity and Employment Growth: Moderating Effect of the Recent Global Financial Crisis


  • Grillitsch, Markus

    () (Department of Human Geography, Lund University)

  • Tavassoli, Sam

    () (RMIT)


This paper 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, i.e. the relationship between cultural diversity and employment growth is inverted U-shape, which is even more pronounced during/after the GFC. We discussed the implication of findings for other contexts.

Suggested Citation

  • Grillitsch, Markus & Tavassoli, Sam, 2018. "Cultural Diversity and Employment Growth: Moderating Effect of the Recent Global Financial Crisis," Papers in Innovation Studies 2018/5, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2018_005

    Download full text from publisher

    File URL:
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    1. Richard F. J. Haans & Constant Pieters & Zi-Lin He, 2016. "Thinking about U: Theorizing and testing U- and inverted U-shaped relationships in strategy research," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1177-1195, July.
    2. Fara Azmat & Yuka Fujimoto & Ruth Rentschler, 2015. "Exploring cultural inclusion: Perspectives from a community arts organisation," Australian Journal of Management, Australian School of Business, vol. 40(2), pages 375-396, May.
    3. repec:taf:ecinnt:v:25:y:2016:i:7:p:631-650 is not listed on IDEAS
    4. Helen Kang & Mandy Cheng & Sidney J. Gray, 2007. "Corporate Governance and Board Composition: diversity and independence of Australian boards," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 194-207, March.
    5. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    6. Farnese, Maria Luisa & Fida, Roberta & Livi, Stefano, 2016. "Reflexivity and flexibility: Complementary routes to innovation?," Journal of Management & Organization, Cambridge University Press, vol. 22(03), pages 404-419, May.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Cultural diversity; firm performance; Global Financial Crisis (GFC);

    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

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:lucirc:2018_005. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Torben Schubert). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.