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The purpose of the study is to understand whether psychological contract (PC) expectations manifest differently for diversity clusters of gender, physical disability and region in relation to job performance and intention to stay.

It is a survey-based study. Data from 1,065 information technology and business process management professionals were analysed using partial least square based structural equation model (PLS-SEM) and multigroup analysis.

The met PC expectations related to career growth and development impact performance and are influenced by regional diversity. The met PC expectations related to job and work environment impact the intention to stay. Gender and physical disability do not influence any relationship.

The findings related to physical disability are based on a small sample of 60 employees. This could be reflective of their actual participation in the workplace.

No significant differences were found between men and women employees with/without physically disability. However, regional diversity creates significant differences. Diversity policies should reckon these similarities/differences while viewing requirements of job performance and determinants of intention to stay.

One needs to be careful while assuming diversity as a heterogeneous phenomenon. The reality could reflect both differences and similarities. Diverse employee groups having a common set of expectations is a socially positive evolution connoting better social integration.

This article is one of the first to research the influence of gender, physical disability and regional diversity on PC and its outcomes in India. Regional diversity has not been studied based on this framework and this adds to the body of knowledge.

The decision to engage in entrepreneurial activities is grounded in personal characteristics (motivation) and external environmental factors. One of the main external factors might be the structure of the regional economic activity. Does a high share of the public sector affect positively regional entrepreneurship or vice versa? Does the diversity in regional economic activity is conducive for entrepreneurial development or the regional comparative advantage as expressed by spatial economies of scale offering more entrepreneurial opportunities? Even though economic analysis has extensively examined the impact of the public sector size on the overall national economic activity (the crowding out effect), this impact has not been into scrutiny at regional level on microeconomic issues, such as the decision to engage in entrepreneurial activities. The authors further investigate the relation between diversity and entrepreneurship at regional level. The paper aims to discuss these issues.

This paper uses data for 264 NUTS II EU regions. The time span of the data set is 1999-2008. The paper applies panel data analysis to explain the cross-time cross-section variation of the dependent variable: the self-employment share in total employment at regional level. In order to measure the existence of crowding out from public sector to regional entrepreneurship, the authors use the share of regional public sector gross value added over total regional gross value added. The diversity of the regional economic activity is measured by the Herfindahl-Hirschman Concentration Index across sectors.

The findings of the paper show that there is a negative correlation between public sector share and regional entrepreneurship. Hence, as at national level, the increase in the role of the public sector in the regional economic system crowds out regional entrepreneurship. The second finding indicates that the impact of the diversity of the regional economic activity on regional entrepreneurship is inconclusive.

The originality of this paper is due to the fact that the role of the public sector on regional economic phenomena, such as entrepreneurship, is examined for the first time. Also, the investigation of the relationship between diversity (vs localization economies) and entrepreneurship is performed using data for the full sample of regions of the European Union. The findings of the paper have significant policy implications since they provide useful inputs for the design of the regional development policy. The reduction of the public sector at regional level may contribute in entrepreneurial development and finally in regional economic growth and prosperity. Besides, the regional industrial policy should focus on the exploitation of the spatially constraint economies of scope in the framework of the Triple Helix model.

Networks connecting two important supporting institutions – law firms and venture capital partnerships – explain regions’ disparate abilities to sustain diverse high-technology ventures. In order to explain the diversity of entrepreneurial activity in a region, we distinguish between institutional capacity (the number of law firms and venture capitalists in a locale), strong interinstitutional connections that span legal and financial domains, and cohesive structural communities of directly and indirectly connected supporting organizations. We argue that strong connections and cohesive communities are essential, but little examined contributors to the development of diverse research-based economies. We find support for the argument in an empirical analysis of initial public offerings (IPOs) by U.S. high-technology companies in five industries between 1993 and 2005. Linking regional outcomes to strong ties that span local legal and financial institutions and to cohesive structures that weld them into communities offers new insights for research on the institutional and network underpinnings of entrepreneurship and regional economic development.

This paper aims to explore the interplay between industrial diversity and sustainable economic development in US counties.

Among other popularly used measures, this study uses an underused measure, Hachman index, to gauge the degree of industrial diversity in the models. To capture the impact of industrial diversity on the local community, this study estimates the relationship of two diversity measures to four traditional socioeconomic indicators: per capita personal income growth, gross domestic product per worker, income inequality ratio and poverty rate.

Statistical results suggest that industrial diversity, which is measured by Hachman index, is significantly related to the four socio-economic indicators. Industrial diversity can positively contribute to regional per capita personal income growth and mitigate income inequality and poverty stress; however, it is negatively related to the gross domestic product (GDP) per worker, which means industrial specialization may contribute to GDP per worker growth.

The findings of this study show that there is a nonlinear relationship between industrial diversity and all socioeconomic indicators. Most of the control variables, human capital variables and business and industry profile variables also display significant and positive impacts on economic development.

International immigration affects the degree of cultural diversity present in a labour force. The purpose of this paper is to focus on the consequences of immigration with respect to the level of cultural diversity by estimating employment functions for individual establishments.

The theory behind the empirical analyses is based on a “turned around” new economic geography model. The data basis used is a linked employer – employee data set generated by a fusion of the IAB Establishment Panel with the Employment Statistics of Germany, which provides very detailed information about individual workers and establishments. In the empirical part instrumental variables techniques are employed to solve the endogeneity issues involved.

In the empirical analyses it is shown that employment is lower when the degree of diversity is higher, regarding the revenue of an individual establishment as given. From this result it can be derived under the conditions of monopolistic competition (implying elastic product demand) that the establishment is able to occupy a relatively large part of the market. Finally, this implies relatively high labour demand.

The paper provides clear evidence that cultural diversity in single establishments enhance productivity. The question remains whether different employees interact each another or whether they are separated to different tasks within the establishment. In the latter case productivity gains are due to task-specific knowledge whereas in the former one the interaction of different cultures matters. This issue cannot be answered with the given data set.

Negative effects emerging from employing various cultures (such as language barriers) can be compensated. Thus, hiring foreign born workers does not mean a decline in productivity and a loss in competitiveness.

The purpose of this paper is to examine the relationship between bank diversity and small- and medium-sized enterprise (SME) firm innovation in China to evaluate the impact of recent bank deregulation.

Using a large data set that includes 8,143 firm-year observations of 1,122 listed SME firms in China and baseline and robustness regression analyses, the authors identify how bank diversity affects firm innovation and via what economic mechanisms. Potential endogeneity problems are considered and addressed in the design and analysis to minimize research bias.

The authors find robust evidence that bank diversity improves firm innovation. Specifically, the findings suggest that the positive effects of bank diversity on firm innovation are only significant for the firms which are more external finance dependent, have fewer growth opportunities and/or located in the provinces having low financial market development.

This study provides novel evidence and insights into the relationship between banking market structure and the determinants of firm innovation in the Chinese context, as a result of China’s banking deregulation.

Estimates a total effects cost function using a national 1994 health maintenance organization (HMO) data set to examine and update findings related to HMO efficiency. The cost function controls for ownership characteristics (profit status and ownership), size, enrollment diversity, regional location, product diversity, model type, payment characteristics, and years of operation. While not explicitly controlling for quality or acuity, measures of plan and enrollee diversity help control for acuity and quality. Results show that most of the difference in cost efficiency between HMOs is explained by factors specific to the HMO, including efficiencies of scale and scope, lower levels of Medicare patients, and efficient levels of capital. The study also shows that for‐profits are more efficient than non‐profits because they rely less on withhold pools to control costs. Limitations of the study include weak controls for quality of care, and limited data related to payment characteristics.

1. To understand the importance of creating and implementing a vision for enhancing gender diversity and inclusion relevant to the manufacturing and engineering sector in an emerging market.

2. To develop insights into the vision and characteristics of an inclusive leader.

3. To evaluate the strategies and organizational levers that created and nurtured a climate of gender diversity and inclusion in Cummins India.

4. To identify organizational levers that will enable the sustenance and institutionalization of a climate of inclusion.

This case study traces a 16-year journey of diversity and inclusion at Cummins India, a subsidiary of the Fortune 500 manufacturing organization Cummins Inc. headquartered in the US. Initially spearheaded by Anant Talaulicar, and then continued by Ashwath Ram, gender D&I initiative at Cummins India has made significant strides. Talaulicar had an opportunity to immerse himself in the ethos of the parent company before joining the Indian subsidiary.

In India during the early 2000s the external environment was characterized by rapid technological and regulatory changes and increasing complexity. To make matters more difficult, the internal culture was steeped in a traditional manufacturing mindset marked by dismal female participation rate and an over-representation of locals with similar beliefs and value systems.

Given the mammoth task already taken up by Talaulicar by improving the diversity numbers from 3% to 33%, Ram had big shoes to fill. On one hand, he had to drive the business amidst uncertain market conditions; on the other hand, he had to carry on a legacy. Given that he himself had a lived experience of Cummins global values, he knew D&I was an integral part of the Cummins way of life. His familiarity with the socio-cultural challenges of the country coupled with his drive to continue and rejuvenate the D&I agenda, brought some interesting, yet challenging, questions for him. With the internal and external pressures looming large before him, could he institutionalize a climate of inclusion that could serve as a strategic lever to place the company on the path of growth, vibrancy and economic prosperity?

Through qualitative research conducted by the authors, this case study brought out learnings pertaining to linkage of leadership in creating a climate of inclusion and expansion of talent diversity through a set of people strategies and HR practices. The contribution of this case study is primarily to theory and practice in the field of Human Resource Management, D&I as well as in developing inclusive leadership.

MBA programs and leadership development programs

Teaching notes are available for educators only.

CSS 6: Human Resource Management.

The purpose of this paper is to examine whether and how the extent of religion in a firm’s social environment affects corporate innovation and innovation efficiency from the perspectives of religion-related risk aversion and religion-based social norms.

Using a sample of 8,601 Chinese firm-year observations from 2007 to 2012, this paper examines the relationship between religion and innovation intensity, as well as innovation efficiency. A battery of checks, that is, adopting Heckman selection model, using a province-level measure of religiosity and an alternative measure of innovation intensity, and taking the stochastic frontier analysis method to capture corporate innovation efficiency, are conducted to alleviate the concern of self-selection and to guarantee the robustness of the findings of this paper.

This paper finds strong evidence that firms registered in more religious regions, that is, regions with more Buddhist monasteries within a certain radius, undertake fewer innovation activities as measured by the ratio of R&D investment over total sales income but achieve higher innovation efficiency reflected by the value-relevance of R&D investment.

This paper complements the existing literature by suggesting that religion can serve as an informal social mechanism and performs a “less is more” effect in disciplining corporate innovation activities.

In the wake of inconsistent findings between board diversity and firm performance, the purpose of this paper is to advance the research by examining the linear and non-linear nature of the relationship between board demographic diversity (gender, age, tenure, and education) and firm performance in Indian knowledge-intensive firms (KIFs).

This study uses a panel data set of top KIFs in India that is listed in National Stock Exchange’s Top-200 list for the period 2010-2014.

Results indicate that there exists a positive linear relationship between the overall board demographic diversity index (board gender, age, tenure, and education) and firm performance. Among the effects of individual board diversity variables, the authors have found that board age diversity positively whereas education diversity negatively influences firm performance. Furthermore, gender diversity and tenure diversity do not significantly influence the firm performance.

This study is based on the following demographic factors: gender, age, tenure, and level of education. The authors did not include other demographic variables such as nationality and language.

This research would help knowledge-intensive companies in designing their corporate boards. The results indicate that companies should have more diverse boards to enhance firm performance.

To the best of the authors’ knowledge, this is the first research to examine the effect of the overall board diversity index and individual board demographic diversity indices (gender, age, education, and tenure) on firm performance in the context of KIFs in India.