An Examination of the Relationship Between Levels Diversity-Organizational Performance: Does Innovative Culture Matter?

Abstract

In the diverse and intense atmosphere of modern business conduct, performance, and proper management of diversity are crucial aspects for every organization. This research investigates the emergence of workforce diversity and firm performance consequences. In such an approach toward the field of diversity research, we investigated the effect of surface-level diversity versus deep-level diversity on organizational performance. Also, the mediating effect of innovative culture has been noted in the model that is defined for current research. This research takes place in the context of the Lebanese banking sector with 75 different banking and finance institutions involved. Hypotheses were tested through Structural Equation Modeling techniques. The findings demonstrated that diversity in age and experience have a vivid impact on organizational performance through the mediation effect of an innovative culture. The literature of diversity alongside managers and HR departments of the banking sector can benefit from the findings of current research.