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The purpose of this paper is to extend current discussion on the drivers of innovative work behavior (IWB) by exploring how individual perceived diversities (visible dissimilarity and cognitive group diversity) and climates (team/clan and innovative/entrepreneurial) impact IWB.

Data had been collected from a cross-national study of working professionals (n = 584) from five different cultural contexts.

Findings of this study indicated that cognitive group diversity mediated the negative relationship between visible dissimilarity and IWB. Further, both innovative/entrepreneurial and team/clan climates moderated the relationship between visible dissimilarity and cognitive group diversity. Such a moderation effect reduced the negative effect that visible dissimilarity had on IWB.

A cross-sectional single-source data set.

From a managerial perspective, climates (team/clan and innovative/entrepreneurial) are central for IWB in the diverse (visible and cognitive) working environment. Thus, organizations should pay attention to create a climate (team/clan or/and innovative/entrepreneurial) that reduces the negative impact of perceived diversity in the working environment while supporting IWB.

This study is the first of its kind that is based on social categorization theory, empirically examining how different types of diversity (visible dissimilarity and cognitive group diversity) simultaneously reduce individuals’ IWB. Furthermore, this paper provides insights that climates (team/clan and innovative/entrepreneurial) are crucial for IWB in the diverse working environment.

Besides diversity's positive effects, groups of “we” against “them” may form in accordance with social categorization theory, showing diversity's negative consequences. The authors aim to reconcile these results and examine their boundary conditions.

The authors studied 584 working professionals from five contexts (transnational companies dealing with multicultural interactions) and analyzed data using moderated-mediation procedures.

A leader-promoting diversity climate plays a crucial role in moderating the negative relationship between perceived dissimilarity and group identification, which is mediated by value dissimilarity.

This study mainly contributes by treating dissimilarity as a multicomponent construct, emphasizing the crucial differences embodied in various conceptualizations of dissimilarity – namely visible and value dissimilarity. For dissimilarity to result in group identification, the results highlight leaders' crucial role, beyond that of organizations and individuals, in stimulating a diversity-embracing climate in work units.