Employee productivity, employment growth and the cross-border acquisitions by emerging market firms

Ali Ataullah, Hang Le, Amandeep S. Sahota

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)

Abstract

We examine the impact of the cross-border acquisitions made by firms from emerging markets on employee productivity and employment growth. The recent literature suggests that cross-border acquisitions enable emerging market firms to obtain new skills and knowledge-intensive assets, which, in turn, may lead to an increase in productivity. However, our empirical analysis suggests that cross-border acquisitions reduce employee productivity and have a limited impact on employment growth. Moreover, the adverse effect on productivity is associated with the cross-border acquisitions in less-developed countries and countries with considerably different national cultures. Overall, our findings cast doubt on the idea that cross-border acquisitions enable emerging market firms to improve the productivity of one of their most important resources, namely, their human capital.
Original languageEnglish
Pages (from-to)987-1004
Number of pages18
JournalHuman Resource Management
Volume53
Issue number6
Early online date31 Jul 2014
DOIs
Publication statusPublished - Dec 2014

Keywords

  • cross-border acquisitions
  • employee productivity
  • employment
  • culture distance

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