Twentieth International Conference on Knowledge, Culture, and Change in Organizations

Abstract

Diversity has often been linked to higher innovation in organizations, but empirical evidence is limited and scarce. Thus, there is a need to re-think the naïve link between diversity and innovation. The aim of this paper is to identify diversity-related conditions for innovation by integrating research on Strategic Diversity Management and leadership. Organizations differ in their strategic approach to deal with diversity. Diversity perspectives (Reinforcing Homogeneity, Colour-Blind, Fairness, Access, Integration and Learning) show different patterns utilizing more or less the potentials of diversity. A quantitative study (N=392) was conducted in small, medium-size and large multinational corporations in Austria. Results show that the strategic orientation towards diversity influences innovation processes in organizations. Further, leadership plays a crucial role in creating work conditions that are truly inclusive, open, and welcoming–a precondition for innovation. A literature review on global leadership competencies revealed relevant abilities and competencies for inclusive leaders such as intercultural relationship building, diversity beliefs, and global mindset. Finally, a model combining both streams of research is outlined and implications for researcher and practitioners are discussed, accordingly.