Organizational Diversity: A Multidisciplinary Meta-Analytic Structural Equation Model with Mediation

Abstract

Following the theme “Creating a Better World Together” of the 82nd Annual Meeting of the Academy of Management, this study develops and tests meta-analytic structural equation models (MASEMs) to integrate research from multiple disciplines (i.e., management, economics, finance, and accounting research) on the diversity-performance relationship. Based on dominant theories of these disciplines, the results show that various diversity dimensions (i.e., gender, ethnic/racial, age, cultural, personality, functional, and tenure diversity) significantly affect team performance dimensions (i.e., task performance, innovative behavior, constructive deviant behavior, and destructive deviant behavior) and organizational performance dimensions (i.e., financial performance, innovative performance, and sustainability performance). Controlling for study-specific effects, the true effect sizes for each relationship are provided at the population level. These effect sizes indicate team compositions with regards to workforce diversity to reach specific outcomes. Mediation analyses provide various theoretical implications and empirically support the significant effect of team performance on organizational performance, which often has only been implied or assumed by previous research. Implications for future research and actionable practices for managers are derived to support responsible business conduct and social change.