The Impact of Diversity and Inclusion Initiatives on Organizational Performance Using the Resource-Based View Model

Abstract

This paper analyses diversity and inclusion (D&I) programs within the context of the Resource-Based View (RBV) of strategy to determine the way optimally framing D&I programs might impact organizational performance. The strategy of D&I, used to garner competitive advantage, within the realm of RBV, may point to an increase in the performance of an organization. This study attempts to answer the question of the impact of D&I initiatives, as organizational resources, on productivity, employee engagement, and developmental and innovative organizational outcomes. A survey of 300 employees in the various sectors and organizing their performance data for an entire year was the basis for a mixed model research and design. Structural equation modeling (SEM) and regression were used to assess D&I initiatives against organizational performance. Major outcome variables demonstrate a significant positive correlational relationship to D&I initiatives. The effect in organizations with a robust D&I framework represents an increase of 15% to productivity, 20% to employee engagement, and an increase of 25% to innovation in comparison to organizations with a weak D&I framework. These results demonstrate the notable benefit of D&I initiatives in the workplace and the greater D&I initiatives within an organization. The results of the study show the necessity for a progressive view of D&I within an organization. It is the recommendation of this study to focus on the D&I initiatives as the cornerstone building block of a progressive scope for D&I-friendly innovative environments/performance. The reciprocal nature of a progressive scope for D&I seeks transformation and change in the performance of inclusive environments. This research highlights that D&I is more than a social obligation; it can also be a strategic advantage that ensures a company’s prolonged viability.