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This study aimed to illustrate the conditions under which cultural diversity enhances workgroup creativity. It does so by investigating the impact of ethnic diversity on workgroup creativity through the mediating mechanisms of cognitive diversity and information elaboration, while also exploring the role of inclusive leadership in this process.

Multi-source data was collected from a sample of 338 employees nested within 56 workgroups across three distinct organizations. Conditional process analysis was used to empirically test the proposed hypotheses.

The results show that ethnic diversity, a surface-level cultural attribute, contributed to diversity in deep-level cognitive resources, and that workgroups were able to capitalize on these variations in deep-level cognitive resources to enhance their creativity when they engaged in the elaboration of task-relevant information. Results also demonstrated that the effective management of workgroup processes through inclusive leadership helped materialize the performance-promoting effects of cultural diversity. Overall, the findings support the notion that cultural diversity is indeed beneficial to workgroups.

Prior research has typically examined cultural diversity in workgroups from the perspective of either surface-level or deep-level cultural attributes, leading to conflicting findings. Our study takes a multifaceted approach to cultural diversity and its influence on workgroup creativity, offering a more nuanced understanding. Additionally, by integrating the concept of inclusive leadership, a relatively new conceptualization of leadership specifically relevant to diverse workgroups, we clarified strategies for fostering positive workgroup performance.