Vol. 6, Issue 2, Part D (2024)

This study investigates the impact of diversity management on organizational innovation, with a focus on the mediating role of knowledge sharing and the moderating influence of inclusive leadership. Using a quantitative approach, data were collected through surveys from employees across various organizations, capturing insights into diversity management practices, leadership styles, and innovation outcomes. The analysis employs structural equation modeling (SEM) to explore relationships between diversity, knowledge sharing, and innovation, highlighting how inclusive leadership fosters an environment that supports knowledge sharing and values diverse perspectives. The findings reinforce the Knowledge-Based View (KBV), positioning knowledge as a vital organizational asset that drives innovation, particularly in diverse work environments.
Results indicate that diversity management contributes positively to innovation, primarily when supported by knowledge-sharing frameworks and inclusive leadership. Knowledge sharing is shown to be a critical pathway through which diversity translates into innovation, while inclusive leadership enhances this effect by fostering an open, collaborative culture. The implications suggest that organizations aiming to harness diversity should prioritize inclusive leadership training, invest in policies that facilitate knowledge sharing, and create systems that recognize and leverage diverse contributions. This study contributes to the literature on organizational innovation by demonstrating how diversity, when strategically managed, serves as a catalyst for sustained competitive advantage and adaptability in dynamic business environments.