Employee Productivity, Employment Growth, and the Cross-Border Acquisitions by Emerging Market Firms
Ali Ataullah, Hang Le, Amandeep S. Sahota
Human Resource Management · 2014 · Volume 53 · Issue 6
Abstract
We examine the impact of the cross-border acquisitions made by firms from emerging markets on employee productivity and employment growth. The literature suggests that cross-border acquisitions enable emerging market firms to obtain new skills and knowledge-intensive assets, which, in turn, may increase productivity. However, our empirical analysis suggests that cross-border acquisitions reduce employee productivity and have a limited impact on employment growth. Moreover, we find that cross-border acquisitions in less-developed countries and in culturally distinct countries reduce productivity. 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. © 2014 Wiley Periodicals, Inc.
Keywords
cross-border acquisitions, employee productivity, employment, culture distance
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