The Implications of Managed-Workforce Diversity on Internal Supply Chain Integration and Business Performance

Abstract

Today, workforce diversity management appears to attract strategic attention globally. Given this, a critical question that emerging research seeks to address is: is it even worth managing diverse workforce? Partly, this study addresses this question by examining the implications of managed-workforce diversity (MWD) on internal supply chain (SC) integration and business performance. Data was collected from one hundred and twenty six respondents using mainly questionnaires. The constructs employed to measure managed-workforce diversity, internal supply chain integration and business performance were together subjected to ANOVA, exploratory factor analysis (EFA) and then confirmatory factor analysis (CFA) and Structural Equation Model (SEM) in LISREL 8.5. Analysis of the data gathered indicated that MWD is most likely to be beneficial in enhancing internal SC integration and then SC responsiveness; with the former benefit acting as a conduit through which the latter benefit is experienced. The study therefore argues that effective workforce diversity management is one that creates and maintains MWD (which is a positive affective climate where employees do not feel intimidated, looked down upon, or discriminated against just because of background differences), all of which are necessary for driving internal SC integration, SC responsiveness, and financial outcomes. The managerial implications and the theoretical relevance of the study’s findings are discussed in details.