Impact of Diversity and Inclusion Policies on Organizational Performance in Multinational Companies: A Quantitative Analysis
DOI:
https://doi.org/10.51903/jmi.v3i3.60Keywords:
Organizational Performance, Multinational Companies, Multiple Linear RegressionAbstract
Globalization has increased the complexity of business, particularly for multinational companies facing the challenges of diversity and inclusion in the workplace. Diversity and inclusion have been recognized as strategic factors that can drive innovation, productivity, and operational efficiency. This study aims to analyze the impact of diversity and inclusion policies on organizational performance in the context of multinational companies. Using a quantitative approach, data were collected through a questionnaire survey involving 200 respondents from various multinational companies. Analysis was conducted using multiple linear regression to measure the contribution of diversity and inclusion policies to organizational performance. The results show that diversity contributes 45% to the improvement of organizational performance, while inclusion contributes 37%. The R² value of 0.6416 indicates that the model can explain 64.16% of the variability in organizational performance based on these two variables. Furthermore, the effective implementation of diversity and inclusion policies has been shown to increase employee engagement by 28% and operational efficiency by 15%. This study emphasizes that diversity and inclusion should be regarded as essential elements in an organizational strategy to enhance competitiveness in the global market. This research contributes to the literature on diversity and inclusion by providing relevant empirical evidence to support strategic decision-making in multinational companies. The study also offers practical guidance for managers in designing more inclusive policies to maximize human resource potential.
References
Bedford, D., Bisbe, J., & Sweeney, B. (2022). Enhancing External Knowledge Search: The Influence of Performance Measurement System Design on the Absorptive Capacity of Top Management Teams. Technovation, 118, 102586. https://doi.org/10.1016/j.technovation.2022.102586
Brennan, J. (2023). Diversity for Justice vs. Diversity for Performance: Philosophical and Empirical Tensions. Journal of Business Ethics, 187(3), 433–447. https://doi.org/10.1007/s10551-022-05278-9
Cabrilo, S., Dahms, S., & Tsai, F. S. (2024). Synergy Between Multidimensional Intellectual Capital and Digital Knowledge Management: Uncovering Innovation Performance Complexities. Journal of Innovation and Knowledge, 9(4), 100568. https://doi.org/10.1016/j.jik.2024.100568
Fu, Q., Cherian, J., Ahmad, N., Scholz, M., Samad, S., & Comite, U. (2022). An Inclusive Leadership Framework to Foster Employee Creativity in the Healthcare Sector: The Role of Psychological Safety and Polychronicity. International Journal of Environmental Research and Public Health, 19(8), 4519. https://doi.org/10.3390/ijerph19084519
Galletta, S., Mazzù, S., Naciti, V., & Vermiglio, C. (2022). Gender Diversity and Sustainability Performance in the Banking Industry. Corporate Social Responsibility and Environmental Management, 29(1), 161–174. https://doi.org/10.1002/csr.2191
Islam, R., French, E., & Ali, M. (2022). Evaluating Board Diversity and its Importance in the Environmental and Social Performance of Organizations. Corporate Social Responsibility and Environmental Management, 29(5), 1134–1145. https://doi.org/10.1002/csr.2259
Jejeniwa, T. O., Mhlongo, N. Z., & Jejeniwa, T. O. (2024). Diversity and Inclusion in the Workplace: A Conceptual Framework Comparing the USA and Nigeria. International Journal of Management & Entrepreneurship Research, 6(5), 1368–1394. https://doi.org/10.51594/ijmer.v6i5.1090
Jerónimo, H. M., Henriques, P. L., & Carvalho, S. I. (2022). Being Inclusive Boosts Impact of Diversity Practices on Employee Engagement. Management Research, 20(2), 129–147. https://doi.org/10.1108/mrjiam-05-2021-1175
Kosec, Z., Sekulic, S., Wilson-Gahan, S., Rostohar, K., Tusak, M., & Bon, M. (2022). Correlation Between Employee Performance, Well-Being, Job Satisfaction, and Life Satisfaction in Sedentary Jobs in Slovenian Enterprises. International Journal of Environmental Research and Public Health, 19(16), 10427. https://doi.org/10.3390/ijerph191610427
Laallam, A., Uluyol, B., Kassim, S., & Engku Ali, E. R. A. (2022). The Components of Intellectual Capital and Organisational Performance in Waqf Institutions: Evidence from Algeria Based on Structural Equation Modelling. Journal of Islamic Accounting and Business Research, 13(7), 1110–1136. https://doi.org/10.1108/jiabr-07-2021-0192
Leroy, H., Buengeler, C., Veestraeten, M., Shemla, M., & Hoever, I. J. (2022). Fostering Team Creativity Through Team-Focused Inclusion: The Role of Leader Harvesting the Benefits of Diversity and Cultivating Value-in-Diversity Beliefs. Group and Organization Management, 47(4), 798–839. https://doi.org/10.1177/10596011211009683
Madera, J. M., Yang, W., Wu, L., Ma, E. (Jintao), & Xu, S. (Tracy). (2023). Diversity and Inclusion in Hospitality and Tourism: Bridging the Gap Between Employee and Customer Perspectives. International Journal of Contemporary Hospitality Management, 35(11), 3972–3989. https://doi.org/10.1108/ijchm-04-2023-0450
Maqsoom, A., Ali Musarat, M., Mubbasit, H., Salah Alaloul, W., Ashraf, H., Babar Ali Rabbani, M., & Shaheen, I. (2023). Extrinsic Workforce Diversity Factors: An Impact of Employee Characteristics on Productivity. Ain Shams Engineering Journal, 14(10), 102170. https://doi.org/10.1016/j.asej.2023.102170
Mio, C., Costantini, A., & Panfilo, S. (2022). Performance Measurement Tools for Sustainable Business: A Systematic Literature Review on the Sustainability Balanced Scorecard Use. Corporate Social Responsibility and Environmental Management, 29(2), 367–384. https://doi.org/10.1002/csr.2206
Naveed, R. T., Alhaidan, H., Halbusi, H. Al, & Al-Swidi, A. K. (2022). Do Organizations Really Evolve? The Critical Link Between Organizational Culture and Organizational Innovation Toward Organizational Effectiveness: Pivotal Role of Organizational Resistance. Journal of Innovation and Knowledge, 7(2), 100178. https://doi.org/10.1016/j.jik.2022.100178
Patrício, L., & Franco, M. (2022). A Systematic Literature Review about Team Diversity and Team Performance: Future Lines of Investigation. Administrative Sciences, 12(1), 31. https://doi.org/10.3390/admsci12010031
Purcell, W. M., & Nkansah-Dwamena, E. (2024). Just Sustainabilities: Building Bridges and Breaking Barriers to Empower Employees for Inclusive Workplaces—Evidence from Ghana. Merits, 4(4), 325–345. https://doi.org/10.3390/merits4040025
Rabin, B. A., Cakici, J., Golden, C. A., Estabrooks, P. A., Glasgow, R. E., & Gaglio, B. (2022). A Citation Analysis and Scoping Systematic Review of the Operationalization of the Practical, Robust Implementation and Sustainability Model (PRISM). Implementation Science, 17(1), 1–26. https://doi.org/10.1186/s13012-022-01234-3
Sandberg, H., Alnoor, A., & Tiberius, V. (2023). Environmental, Social, and Governance Ratings and Financial Performance: Evidence From the European Food Industry. Business Strategy and the Environment, 32(4), 2471–2489. https://doi.org/10.1002/bse.3259
Santos, S. C., & Neumeyer, X. (2022). Culture and Gender in Entrepreneurial Teams: The Effect on Team Processes and Outcomes. Small Business Economics, 58(2), 1035–1050. https://doi.org/10.1007/s11187-020-00432-x
Shore, L. M., & Chung, B. G. (2022). Inclusive Leadership: How Leaders Sustain or Discourage Work Group Inclusion. Group and Organization Management, 47(4), 723–754. https://doi.org/10.1177/1059601121999580
Wagdi, O., & Fathi, A. (2024). The Impact of Top Management Team Members Diversity on Corporations’ Performance and Value: Evidence from Emerging Markets. Future Business Journal, 10(1), 81. https://doi.org/10.1186/s43093-024-00364-y
Wolbring, G., & Nguyen, A. (2023). Equity/Equality, Diversity and Inclusion, and Other EDI Phrases and EDI Policy Frameworks: A Scoping Review. Trends in Higher Education, 2(1), 168–237. https://doi.org/10.3390/higheredu2010011
Yang, M., Luu, T. T., & Qian, D. (2022). Group Diversity and Employee Service Innovative Behavior in the Hospitality Industry: A Multilevel Model. International Journal of Contemporary Hospitality Management, 34(2), 808–835. https://doi.org/10.1108/ijchm-06-2021-0822
Yousef, K. (2024). Exploring the Impact of Cultural Diversity in Global Projects: A Comparative Analysis of Virtual and Face-to-Face Teamwork. International Journal of Cross-Cultural Management, 24(2), 411–430. https://doi.org/10.1177/147059582412537
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Journal of Management and Informatics
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
