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The Moderating Effect of Diversity Strategy on the Relationship Between Racial Diversity and Organizational Performance
Author(s) -
Cunningham George B.
Publication year - 2009
Publication title -
journal of applied social psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 111
eISSN - 1559-1816
pISSN - 0021-9029
DOI - 10.1111/j.1559-1816.2009.00490.x
Subject(s) - diversity (politics) , psychology , variance (accounting) , moderation , social psychology , diversity management , racial diversity , applied psychology , ethnic group , political science , business , accounting , law
The purpose of this study was to examine the degree to which a proactive diversity‐management strategy moderated the relationship between racial diversity and organizational performance. Data were gathered from 75 NCAA athletic departments. Hierarchal regression analysis indicated that, after controlling for the department expenditures and department size, racial diversity was positively associated with objective measures of overall performance. These effects were qualified by the moderating effects of a proactive diversity‐management strategy, as departments that were racially diverse and followed a proactive diversity‐management strategy had the greatest performance. The total model explained 68% of the variance in the department's performance. Results are discussed in terms of contributions and implications.