The Impact of Private Equity on Management Practices in European Buy‐Outs: Short‐Termism, Anglo‐Saxon, or Host Country Effects?

22 Pages Posted: 24 Apr 2012

See all articles by Nick Bacon

Nick Bacon

City University London - Sir John Cass Business School

Mike Wright

Nottingham University Business School

Miguel Meuleman

Vlerick Business School; University of Nottingham

Louise Scholes

Loughborough University London

Date Written: April 2012

Abstract

This article explores the impact of private equity (PE) firms on human resource management practices in buy‐outs using data drawn from the first representative pan‐European survey into this issue. The findings suggest the overall impact of PE on high‐performance work practices (HPWP) is affected more by length of the investment relationship than the countries where PE is going to or is coming from. PE investment results in the increased use of HPWP in buy‐outs the longer the anticipated time to exit. With respect to the PE firms’ country of origin, buy‐outs backed by Anglo‐Saxon PE firms are as likely to introduce new HPWP (and are specifically more likely to extend performance‐related pay schemes) as those backed by non‐Anglo‐Saxon PE firms, suggesting some adaptation to the local host country contexts of buy‐outs.

Suggested Citation

Bacon, Nick and Wright, Mike and Meuleman, Miguel and Scholes, Louise, The Impact of Private Equity on Management Practices in European Buy‐Outs: Short‐Termism, Anglo‐Saxon, or Host Country Effects? (April 2012). Industrial Relations: A Journal of Economy and Society, Vol. 51, pp. 605-626, 2012. Available at SSRN: https://ssrn.com/abstract=2045383 or http://dx.doi.org/10.1111/j.1468-232X.2012.00692.x

Nick Bacon (Contact Author)

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

Mike Wright

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom
+44 115 951 5257 (Phone)
+44 115 951 5204 (Fax)

Miguel Meuleman

Vlerick Business School ( email )

Reep 1
Gent, 9000
Belgium
0032(0)92109770 (Phone)
0032(0)92109790 (Fax)

University of Nottingham

University Park
Nottingham, NG8 1BB
United Kingdom

Louise Scholes

Loughborough University London ( email )

Here East
Queen Elizabeth Olympic Park
London, E15 2GZ
Great Britain

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