Diversity At Organizational Level And Firm Performance Essay

737 Words Mar 17th, 2016 3 Pages
The central research questions of this paper is how cognitive diversity at organizational level leads to firm performance. Although there have been several studies identifying the relationship between diversity and firm performance, they mostly looked at surface-level diversity, not deep-level diversity (Miller & Triana, 2009; Richard, 2000; Richard et al., 2004; Andrevski et al., 2014). For instance, Richard (2000) examined the relationship between racial diversity and firm performance based on resource-based view (Barney, 1991) and strategic human resource management (Lado, Boyd, & Wright, 1992) and found that business strategy regarding ‘growth’ moderated the relationship. The main framework in that study is that racial diversity serves as a resource that is valuable, rare, and inimitable (Barney, 1991; Richard, 2000). In another empirical study, Anrevski and colleagues (2014) proposed a moderated-mediation model of racial diversity at managerial level and firm performance based on the knowledge-based view of the firm (Cohen & Levinthal, 1990; Grant, 1996; Zahra & George, 2002). These empirical studies have provided some founding motivations for the development of the theory in this paper. First, these studies do not consider deep-level diversity (i.e., cognitive diversity) as a main independent variable, which allows me to take neglected but important dimension of diversity into account. Second, these studies base their studies on the theories strategy literature, such…

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