The Impact of Employee Cultural Diversity on Organisational Performance

An investigation of Liverpool John Moores University

Abstract

In an increasingly globalised world, where interaction between people of diverse backgrounds and cultures is essential, understanding the impact of employee cultural diversity on organisational performance has become crucial for fostering innovation, creativity, and competitive advantage. Despite its importance, there is a dearth of research examining the extent to which organisational performance is impacted by employees’ ethnic and cultural differences. This research thus provides an in-depth empirical examination of the extent to which organisational performance is impacted by employees’ ethnic and cultural differences. A quantitative methodology was deployed, utilising a survey instrument to collect data from 70 employees at Liverpool John Moores University. The findings reveal that employee cultural differences pertaining to communication, collaboration, learning, fairness and inclusion, equal access, and integration have a significant positive impact on organisational performance. However, realising these benefits depends largely on management’s commitment to fostering a culturally diverse workplace. The findings also provide valuable insight into the reasons why contemporary organisations are embracing cultural diversity.