Employee Redeployment in Diversified Firms

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This paper examines the link between product market diversification and employee redeployment. Prior work finds that firms can redeploy resources to react to inducements and performance advantages but may thereby compromise potential synergies. This paper argues that expected synergies are an additional mechanism for employee redeployment and depend on the origin and the destination of the redeployed employees. Using employer-employee data on Finnish multiunit firms, I find that employee redeployment across subsidiaries increases with firm diversification. In line with the argument that diversified firms may seek to increase their parenting advantage by redirecting resources from parent firms to subsidiaries, firm diversification is also positively linked with employee redeployment from parent units towards subsidiaries. The study contributes to the resource reconfiguration and diversification literature by examining and offering large-scale empirical insights into the corporate parent role and expected synergies in employee redeployment decisions.
Original languageEnglish
Title of host publicationProceedings of the Eighty-second Annual Meeting of the Academy of Management
EditorsSonja Taneja
Number of pages1
Place of PublicationBriarcliff Manor, NY
PublisherAcademy of Management
Publication date2022
Publication statusPublished - 2022
EventThe Academy of Management Annual Meeting 2022: Creating a Better World Together - Seattle, United States
Duration: 5 Aug 20229 Aug 2022
Conference number: 82


ConferenceThe Academy of Management Annual Meeting 2022
Country/TerritoryUnited States
Internet address
SeriesAcademy of Management Proceedings


  • AOM annual meeting proceedings 2022
  • AOM seattle 2022

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