Innovating for Inclusion: How Diversity Management and Innovation Drive Employee Performance

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Christian Wiradendi Wolor, Faerozh Madli, Mahmoud Ali Rababah, Hasan Mukhibad, Wong Chee Hoo, Dergibson Siagian, Diyan Putranto

2025 An-Najah University Journal for Research - B (Humanities) Vol. 39 Issue 9 Article Cited by 2 Quartile

Abstract

Objective: In recent years, the concept of workplace diversity has evolved, aiming to ensure that businesses not only hire more minority employees but also improve minority engagement, performance, and compensation. This diversity presents both challenges and opportunities for organizations in terms of managing workplace tension, conflict, and harmony to enhance productivity. This study seeks to address the gap between the positive and negative impacts associated with diversity management to enhance employee performance by examining the impact of diversity management, work environment, and innovative work behaviors on employee performance. Methods: An employee survey was conducted between January and March 2024 to collect data for this study. This study was conducted in Indonesia, which has 34 provinces, 1,331 ethnic groups, 17,001 islands, 715 regional languages, and 6 state-recognized religions. The population of this study consisted of private sector employees in Indonesia. The sample consisted of two hundred people working in the manufacturing sector in Indonesia. A quantitative methodology was used, combining survey instruments and structural equation modeling (SEM). Results: The study’s findings indicate that diversity management influences the work environment and innovative work behavior, though it does not directly affect employee performance. Furthermore, innovative work behavior positively affects employee performance, and the work environment also influences employee performance. This study contributes to strengthening the theory and practice of implementing effective communication and management strategies to maximize the benefits of diversity. Recommendations: The management should effectively manage diversity within their company by providing diversity training, implementing inclusion policies, fostering diverse recruitment, encouraging open dialogue, and securing leadership support. An-Najah University Journal for Research - B (Humanities) © 1986 by An-Najah University, Nablus, Palestine is licensed under CC BY-NC 4.0

Affiliations

Faculty of Economics and Business, Universitas Negeri Jakarta, Jakarta, 13220, Indonesia; Fakulti Perniagaan, Ekonomi dan Perakaunan, Universiti Malaysia Sabah, Sabah, Kota Kinabalu, 88400, Malaysia; Department of English Language and Literature, Al-Balqa Applied University, Al-Salt, 19117, Jordan; Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, 50229, Indonesia; Faculty of Business and Communication, INTI International University, Nilai, 71800, Malaysia; Faculty of Economics and Business, Institut Bisnis dan Informatika Kwik Kian Gie, Jakarta, 14350, Indonesia; Sekolah Tinggi Manajemen Pariwisata dan logistik Lentera Mondial, Jakarta, 10130, Indonesia