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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.

This paper aims to examine the drivers of employee creativity and organizational innovation empirically. And to study how employee creativity significantly impacts organizational innovation in a highly competitive market.

This study is grounded in positivism philosophy. The theoretical model is grounded in the dynamic capability view (DCV) and further developed ten hypotheses and sub-hypotheses. To test our research hypotheses the authors utilized psychometric-based instruments. The authors obtained 575 responses from the automobile industry in India after multiple follow-ups. The data were utilized to check the construct validity and tested the authors’ research hypotheses using the co-variance-based structural equation modeling (SEM) tool (IBM SPSS AMOS 20.0).

The results support the authors’ research hypotheses. The findings of this study conform to the previous findings of the scholars which is an important aspect of the study. In the past various scholars have made an attempt to reproduce the results in different contexts. In a way, it helps to build confidence in the scientific merit of the results. It may be considered as an incremental contribution to the literature but it helps establish confidence in the theory of creativity and innovation.

The results offer a nuanced understanding to the practitioners and policy makers to understand “what” and “how” to improve employee creativity that plays a significant role in organizational innovation.

This study is an attempt to examine how the theory of creativity and innovation can be embraced by the Indian automobile industry.