Impact of Cultural Diversity on Overall Organizational Performance: A Moderating Role Education

Abstract

This study focused on the impact of cultural diversity on organizational performance as moderated by employees’ educational attainment. The study measured cultural diversity as language, religious and value system diversity. Organizational performance was measured as team building, communication, and employee productivity. The study collected primary data from 353 employees from ten different manufacturing companies in the Ashanti and Greater Accra Regions of Ghana. The study employed mean and standard deviation for descriptive analysis. The study employed a structural equation model for the estimation. Cultural diversity was found to be prevalence in the sampled companies. However, team building, and communication were effective, and employee productivity was high. The educational attainment of employees significantly reduced the negative impact of language, religious, and value system diversity on each organizational performance indicator. Stakeholders in Ghana’s manufacturing industry should encourage continued human resource development through the pursuance of higher education, internal and external training, and seminars.