WORKPLACE DIVERSITY AND ITS IMPACT ON INNOVATION PERFORMANCE
Keywords:
Workplace diversity, Innovation performance, Gender diversity, Ethnic diversity, Panel dataanalysisAbstract
Workplace diversity has increasingly been recognized asa strategic organizational resource with potential implicationsfor innovation-driven competitiveness. This study examines the extent and evolution of workforce diversity withintechnology firms and explores its relevance for innovation performance from afirm-level longitudinal perspective. Usingsecondary panel data covering multiple technology companies over the period2014–2018,diversity is operationalizedthrough Blau’s heterogeneity index, capturing both gender and ethnic dimensions. Descriptive andpanel evidenceindicate a gradual increase in overall workforce heterogeneity, with ethnic diversity contributing more substantially tocross-firm variation than gender diversity. The findings highlight significant differences across firms, suggesting thatdiversity reflects strategic and structural characteristics rather than uniform industry patterns. The study contributes tothe diversity–innovation literature by adopting a multidimensional measurement approach and emphasizing firm-leveldynamics over time. The results underscore that while demographic heterogeneity expands the potential knowledge baseof organizations, its innovation benefits are likely contingent upon supportive managerial and organizational conditions.By integrating strategic human resource and diversity perspectives, this research provides insights for firms seeking to align workforce composition with long-term innovation strategies.
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