The dynamic capabilities approach as the bridge between employee diversity and innovation

Abstract

Recent events like the COVID-19 pandemic but also dynamic yet consistent changes like the technological revolution have transformed the business environment but also the context for Human Resources Management. The diversification of the workforce is a fact, yet organizations very often struggle to fully use the potential of their diverse workforce. The article shows a new approach to diversity management, through the lens of dynamic capabilities, on the example of innovations show how to use diversity for organizational benefits. To examine how diversity may influence innovation an exploratory, qualitative research has been designed. Nineteen in-depth-interviews with board members and directors of IT companies have been conducted. The results show, that when focusing on innovation functional diversity, or more broad verity, are of primary importance. The analysis of the interviews allowed for the identification of three dynamic capabilities: acquiring, conversion, and application of variety which transform diversity into innovation. The article shows, to fully draw from diversity a new approach to diversity management is required. It contributes to the ongoing debate on the future and new directions for diversity management and fills an existing theoretical and research gap by adding the dynamic capabilities approach to the discussion