Three is Company, Four is a Crowd? Perceptions of Cultural Diversity in the Workplace

Abstract

AbstractCultural diversity has gained increased validation as a source of greater performance in the context of globalization. This paper examines whether there is an optimum number of foreign coworkers in order to maximize the perceived benefits and minimize the perceived threats of cultural diversity at work. Using a questionnaire survey of 572 Japanese, we found that for perceived benefits of cultural diversity at work, there is no difference between having zero or a token foreign coworker, while more foreign coworkers are associated with moderately higher perceived benefits. For perceived threats, there is a U-shaped relationship whereby interacting with zero or more than three foreign coworkers is linked to higher perceived threats compared to that of only a few foreign coworkers. Our findings reveal that in the Japanese context, interacting with about three foreign coworkers can maximize the perceived benefits while minimizing the perceived threats of cultural diversity in the workplace. Considering diversity in absolute rather than relative terms is an important contribution and implication for business and policy, as Japan and Japanese firms are increasingly dependent on globalization.