The way to business competitiveness: The importance of diversity management and teamwork climate in stabilizing of employees

Jankelová, Nadežda; Joniaková, Zuzana; Procházková, Katarína Article The way to business competitiveness: The importance of diversity management and teamwork climate in stabilizing of employees Journal of Business Economics and Management (JBEM) Provided in Cooperation with: Vilnius Gediminas Technical University (VILNIUS TECH) Suggested Citation: Jankelová, Nadežda; Joniaková, Zuzana; Procházková, Katarína (2022) : The way to business competitiveness: The importance of diversity management and teamwork climate in stabilizing of employees, Journal of Business Economics and Management (JBEM), ISSN 2029-4433, Vilnius Gediminas Technical University, Vilnius, Vol. 23, Iss. 3, pp. 606-625, https://doi.org/10.3846/jbem.2022.16199 This Version is available at: https://hdl.handle.net/10419/317572 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Copyright © 2022 The Author(s). Published by Vilnius Gediminas Technical University This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons. org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. *Corresponding author. E-mail: [email protected] Journal of Business Economics and Management ISSN 1611-1699 / eISSN 2029-4433 2022 Volume 23 Issue 3: 606–625 https://doi.org/10.3846/jbem.2022.16199 THE WAY TO BUSINESS COMPETITIVENESS: THE IMPORTANCE OF DIVERSITY MANAGEMENT AND TEAMWORK CLIMATE IN STABILIZING OF EMPLOYEES Nadežda JANKELOVÁ , Zuzana JONIAKOVÁ , Katarína PROCHÁZKOVÁ * Department of Management, Faculty of Business Management, University of Economics in Bratislava, Slovakia Received 24 July 2020; accepted 11 October 2021; first published online 24 March 2022 Abstract. Focusing on utilization of employees strengths at workforce brings companies benefit to the diverse workforce and creates a competitive advantage in a turbulent and dynamic business environment. The intention of this research is to fill a significant research gap in the in-depth exploration of relationships and support mechanisms for diversity management. The research is focused on teamwork climate as a mediating variable, moderating the effect of best practices in the implementation of diversity management and on its potential level of influence on the employee turnover in the company. It was applied the correlation to evaluate connection r among criteria of three areas: best practices in diversity management, teamwork climate and employee turnover rates. The control variables were age, gender, education and length of manager practice. The dependency between best practices in diversity management and employee turnover, which is mediated by teamwork climate, has been confirmed. However, partial mediation was found, where only part of the effect is mediated. The rate of turnover is influenced by the gender of the manager, age and length of practice. All variables (age, length of experience and gender) are significantly related to the variables of best practices in diversity management and teamwork climate. Keywords: diversity, management, teamwork climate, employee turnover, mediation, best practices. JEL Classification: M10, M12, M14. Introduction Currently, managerial thinking and action are increasingly focused on the effective use of diverse potential of human resources, which are becoming an important factor in the competitiveness of the company in the domestic and foreign markets (Davis etal., 2016; OtayeEbede, 2019). Leveraging the strengths of each employee brings value to the workforce and creates a competitive advantage in a turbulent and dynamic business environment. The main Journal of Business Economics and Management, 2022, 23(3): 606–625 607 thesis of Japanese management, based on the philosophy of Confucianism, is that everyone has his or her strengths, and it is just necessary to find right place where strengths can be applicable. At present, based on demographic trends, this thesis is still relevant to the new challenges of the world of work. The workforce is diverse, not only in terms of age, gender, nationality, education, but also in terms of different experiences, skills, abilities, ways of thinking, beliefs about what is right or what is wrong and also differs in how they see different employees the world around them (Van der Vegt etal., 2006; Tran etal., 2011; Egerova etal., 2013; Otaye-Ebede, 2019). Therefore, there is a growing scientific interest in examining the effectiveness of managing a diverse workforce. Because a diverse workforce is an intangible capital of the company, value creation through this type of capital is indirect, often ambiguous, and based on many authors ideas (Kaplan & Norton, 2004; Yang & Konrad, 2011; Guillaume etal., 2013) it is a result of interconnected relationships, causes and consequences.As reported by Singh etal. (2013), diversity is not a new construct, but with increasing globalization, growing societal pressures for integration, and a changing demographic environment, managing diversity is becoming increasingly challenging. It consists of a set of formalized procedures originated and implemented by organizations to manage diversity effectively among all stakeholders in the organization (Yang & Konrad, 2011). Traditional views on diversity management, which have been limited to fewer forms and less presence of diversity, now appear to be ineffective (Kaplan etal., 2011). For effective diversity management, scientific research has focused on diversity climate (Gonzalez & DeNisi, 2009; Lauring & Selmer, 2011). Diversity climate is the perception of employees as to the extent to which an organization values and integrates diversity and promotes it through fair employment practices (Singh etal., 1013; Kaplan etal., 2011). Yang and Konrad (2011) argue that diversity management generates resources that are scarce and arduous for competitors to imitate, thus focusing on developing a lasting competitive advantage. Ozbilgin and Tatli (2008) provided significant empirical evidence that successful diversity management and subsequent progress in organizational performance are positively correlated. Jelínková and Jiřincová (2015), Jiřincová (2013) confirmed the effectiveness of the practical use of diversity management tools in conjunction with the intellectual capital of companies in creating value and improving business performance. Ashikali and Groeneveld (2015) report the findings of diversity management in relation of individuals behavior to the company. Mamman etal. (2012) point out that the use of diversity management tools leads to greater employee belonging and engagement. However, Otaye-Ebede (2019) argues despite of many studies about the conclusive effects of diversity on business performance, there are some ambiguous findings that dispute the positive effects. The study shows that the positive impacts of diversity management are influenced by the intention with which the company applies this approach. If the motivation is legal aspects or political correctness and not an interest in employees, positive effects may not appear. Even many more meta-analyzes have yielded ambiguous results, where the positive effects of diversity management are linked to the characteristics of teams in terms of their sustainability (Joshi & Roh, 2009; Holmes etal., 2021). According Hulsheger etal. (2009), the positive impact of diversity management itself on results is lower than the impact of using other support processes. Therefore, it is a trend in recent years to examine the conditions under which diversity could have an impact (positive or negative) 608 N. Jankelová et al. The way to business competitiveness: the importance of diversity management and... on business performance (van Knippenberg & Schippers, 2007). Leadership style (Kearney & Gebert, 2009), corporate culture and trust (Olsen & Martins, 2012), organizational commitment (Mamman etal., 2012), information sharing (Kooij-de Bode etal., 2008), deep beliefs about diversity (Van Dick etal., 2008), but also psychological aspects and emotions (Mackie etal., 2008; Singh etal., 2013; Tufan etal., 2019) were identified as moderating variables in the studies. Based on the arguments above, the intent of our research is to fill a significant research gap and create deeper look into relationships and support mechanisms for diversity management. We are interested in whether the implementation of diversity management procedures is related to the degree of employee turnover in companies. We have called these practices, used to varying degrees in companies, best practices in diversity management, and we have chosen the perceived quality of teamwork as a support tool for the direct relationship analyzed. Research is focused on teamwork climate as a mediating variable, transmitting and moderating the effect of best practices in the implementation of diversity management to the degree of employee turnover in the company. The core hypothesis follows from the above: The dependence between best practices in diversity management and employee turnover is mediated by the teamwork climate.In this research study, first will be clarified the role of diversity management in the context of teamwork climate and its importance for company results. Based on the previous studies and research findings is created the theoretical concept of research and three hypotheses are formulated. The results of the research are analyzed by using the mediation method and finally the implications and future possibilities in this research area are presented. 1. Theoretical background The theory defines diversity management as a multifaceted concept, involving management activities that encourage diversity of the workforce, recognize diversity as an important company’s goal, develop cultural awareness, and finally apply formal company’s programs focused on diversity (Sabharwal etal., 2018; Davis etal., 2016; Otaye-Ebede, 2019). Diversity creates a competitive advantage because it helps companies attract and retain the best employees and increase creativity and improve decision-making (Foster & Harris, 2005; Yang & Konrad, 2011; Inegbedion etal., 2020). However, if diversity is not properly managed, it can be a source of conflicts, leading to inefficiency, impoverished quality, absence of creativity and innovation potential, as well as increased labor turnover (De la Torre-Ruiz etal., 2019). Organizations and companies have adopted different approaches to diversity management at various stages of their development (Hewlett etal., 2013). They represent best practices in the area of diversity management and inclusion practices and in terms of a holistic view of diversity management, they can be understood as certain stages in the implementation of diversity management tools. The basic approach to comply with legislation is to apply diversity as an equal opportunity, justice and non-discrimination tool. This approach guarantees the neutrality of human resource management processes to avoid discrimination of all kinds and requires transparent management processes (Van Laer etal., 2021; Inkson etal., 2012; Flory etal., 2021; Dobbin & Kalev, 2016; Ibanez & Riener, 2018). It is a traditional perception of diversity management, but it does not push its boundaries further. Journal of Business Economics and Management, 2022, 23(3): 606–625 609 Another approach is to understand and implement diversity as a resource. This approach is based on the fact that diverse populations have different skills and knowledge that can be used to improve business performance, gain access to different market segments, create a competitive advantage and increase competitiveness in domestic and foreign markets (Joshi & Sarker, 2007; Nowak, 2020; Gerpott etal., 2021; Zacher etal., 2018). The third approach is to understand diversity as an inclusive activator, emphasizing the contribution of diversity to a learning culture and therefore using diversity to rethink organizational structures, working methods and cultures. It requires the creation of an environment that connects values in the workplace with employees– their basic identities, perspectives and allows you to influence and contribute to the creation of vision and build up the strategy of the organization through differences between people. This type of self-reflection suggests that learning and innovation are more likely to occur (Ashikali etal., 2020; Randel etal., 2018; Otaye-Ebede, 2019; Gerpott etal., 2021). The concept of diversity management should be understood in each of these three meanings, as it describes not only the combination of skills, competencies, perspectives, experience, background, but also the appreciation and use of this diversity to improve organizational efficiency and effectiveness and meet staff professional expectations. Diversity should not be seen as an end in itself, but as a mechanism to achieve the wider goals of the business. In order for the results to be visible, according to Madera etal. (2018) diversity management needs to sustainable. Because, like any other long-term goal, achieving diversity poses risks to sustainability. According to the theoretical research, we extracted the most common items in the application of diversity and inclusion approaches in the company, from which we compiled a baseline variable called best practices in diversity and inclusion in the company). The structure of items that are part of the Best practices (BP) are shown in Figure1 and Table1. Effective diversity management has various organizational implications. Van Dick etal. (2008) pointed out in their research that diversity management can not only weaken employee morale and reduce individual performance if tools are set incorrectly, but can also have a negative impact on employee satisfaction and increased turnover in companies. Fluctuation is often understood as a negative factor influencing staffing and continuity of knowledge in companies (De Winne etal., 2019) and firm performance (Hancock etal., 2013). Outgoing employees do not work at full capacity, they carry with them (often to the competition) important knowledge and their departures and replacement cost the company time and money (Hom etal., 2017). The organization therefore strives to keep the percentage of turnover as low as possible. It is stated that the recommended fluctuation rate is in the range of 5–10%. We assume that the BP will lead to a lower turnover rate of the company’s employees. H1. Best practices in diversity and inclusion in the company are positively correlated with employee turnover. Based on the studies about the supportive effect of teamwork climate and its leading to creation of mechanism focused on the job satisfaction (Hargadon & Bechky, 2006; Wang etal., 2014; Chen etal., 2021; Wombacher & Felfe, 2017; Hong etal., 2019; Cambre etal., 2012; Lamberti etal., 2022); we also incline to believe that diversity management would lead to a reduction in the rate of employee turnover by creating a favorable teamwork climate. 610 N. Jankelová et al. The way to business competitiveness: the importance of diversity management and... H2. Best practices in diversity and inclusion in the company are positively correlated with teamwork climate. Optimal teamwork climate is a tool that helps to increase employee performance (Bogan & Dedeoglu, 2017), to develop job satisfaction (Abdolshah etal., 2018), to increase employee loyalty (Guillon & Cezanne, 2014), trust (Nedkovski etal., 2017) and business performance (Ali etal., 2018; Cizmaș etal., 2020). These facts have a positive effect on the degree of fluctuation (Schreurs etal., 2015; De la Torre-Ruiz etal., 2019; El Akremi etal., 2014). H3: Teamwork climate is positively connected with the employee turnover in the company. Best practice in diversity and inclusion (BP) Teamwork climate (TC) Employee turnover in percentage (ET) H1 H2 H3 Figure 1. Used mediator model (source: own research) Table 1. Content of analyzed variables Best Practice and Teamwork Climate (source: own research) Best practices in diversity and inclusion in business (BP) (1– we do not apply at all, 7– we apply fully) Teamwork climate: perceived level of cooperation among employees (TC) (1– strongly disagree, 7– strongly agree) Diversity as equal opportunity, justice and non-discrimination – fair treatment – equal access to opportunities – non-discrimination Diversity as a resource – using the skills and knowledge of a diverse workforce – focusing on diversity between internal and external stakeholders – focusing on innovation and creativity, flexibility, responsiveness and agility Diversity as an inclusive activator – representation of diversity at all levels of the organization – teamwork and cooperation – education and training of employees – conflict management strategies that are cooperative – evidence of leadership commitment to diversity (e.g. Chief Diversity / Equality Officer in company) – Each team member can ask questions in not understandable situations – Employees receive the needed support from other employees at the workplace – The contribution of employees is positively perceived in our company – Disagreements in the team are managed adequately, Team members work together as a wellcoordinated team regardless of their job positions – It is not difficult to express my critical opinion in this workplace if I perceive problems in performance of task Journal of Business Economics and Management, 2022, 23(3): 606–625 611 2. Research objective, methodology and data The aim of this research paper is to examine the link between best practice in diversity and inclusion in companies and the rate of employee turnover, assuming that best practice is positively related to the rate of employee turnover through teamwork climate. To meet this research aim, it is necessary to verify following hypothesis: H1. Best practices in diversity and inclusion in the company are positively correlated with employee turnover. H2. Best practices in diversity and inclusion in the company are positively correlated with teamwork climate. H3: Teamwork climate is positively correlated with the employee turnover in the company. Data collection was realized by using questionnaire, which was distributed by e-mails to managers of companies in Slovakia during November 2019. In the introduction part of the questionnaire was explained to the managers the purpose and meaning of the research. Participation in the research was voluntary while maintaining the anonymity of the respondents. There were contacted 410 company managers in total to obtain a wide and diverse sample in terms of their size and different business focus. There are very few relevant studies focused on diversity management in Slovakia. Due to the need for basic research, there was chosen the widest possible range of companies as the basis of research sample. Managers of companies from the field of services, sales, production and other sectors were asked, as well as managers of small, medium and large companies in order to have all groups equally represented. Each manager represented one company. The return rate of the questionnaires was 51.5%. The research sample of 211 companies is shown in Table 2. Table 2. The research sample (source: own research) Variable Categorization Quantity %Variable Categorization Quantity % Number of employees 10–50 51–250 above 250 Total 55 87 69 211 26.1 41.2 32.7 100.0 Business focus services sale manufacture others Total 115 46 40 10 211 54.5 21.8 19.0 4.7 100.0 Position Lower Middle Upper Total 45 11 155 211 21.3 5.2 73.5 100.0 Years of the managerial prac tice Less than 1 up to 5 years 6–10 years Above 10 years Total 2 33 75 101 211 0.9 15.6 35.5 47.9 100.0 Gender Man Woman Total 130 81 211 61.6 38.4 100.0 Managers age Average SD Median Minimum Maximum 50.15 6.471 5.00 35 65 Education Secondary University PhD.MBATotal 27 172 12 211 12.8 81.5 5.7 100.0 612 N. Jankelová et al. The way to business competitiveness: the importance of diversity management and... In this research the SPSS 22 software package was used to analyze data. Cronbach’s coefficient was used to test the internal consistency reliability of scales. During data analysis the correlation analysis was applied to test for relationships among elements of best practices in diversity management in the company, teamwork climate and employee turnover rates. In order to eliminate the detrimental effects of method biases, we have used factor analysis (Podsakoff etal., 2012). To verify the factor structure of mediating variable, the CFA was facilitated. Factor structure was verified by using scattering factor fixation method in order to determine free-covariation factor coefficients. The factor-based average score method was used as a means to calculate factor score. Through Smart PLs 3.0 (calculation of outer loadings, construct reliability and validity), we verified that the measurement model meets the reliability requirement because all the standardized loadings are greater than 0.70. Cronbach’s alpha (0.925 and 0.884) and composite releases (CR) values (0.949 and 0.920) were greater than 0.70 and less than 0.95. Another tool we measured was rho_A, which is also satisfactory (0.940 and 0.905) and based on the theory should be between Cronbach’s alpha and CR. We also assessed the convergent validity. For this purpose, we used the calculation of the average variance extracted (AVE), which in our models exceeds the level of 0.5 for all constructs, which means that the construct explains an average of at least 50% of its item’s variance. Finally, we also tested discriminant validity of our model. Based on the result of realized analysis we state that discriminant validity is demonstrated. Baron and Kenny’s (1986) mediator model was used. For testing the mediator effect the Sobel test was used. t. A series of regression analysis were used to identify the proposed hypotheses. Partial R2 (ΔR2), F test and standardized regression coefficient (b) and their test statistics (t value) were reported in all regression analysis. The size of the company, gender and age of the manager were selected as the control variables. ANOVA was used to analyze the multiple dependence. During analysis a significance level of 5% was used. A mediator model was applied to test the relationships between the application of best practices in the field of diversity and inclusion in the company (BP), teamwork climate (TC) and employee turnover (ET), which takes into account the mediating role of TC in the relationship between BP and ET. Applied mediation allows us to survey the causal relationships between variables and to involve the third variable in the basic relationship for a better and deeper examination of the analyzed relationships. BP is an independent, explanatory variable. This variable is implemented as a score based on managers’ responses to the application of best practices in diversity and inclusion in the companies within 3 main areas, with each main area consisting of sub-area: – diversity as equal opportunity, justice and non-discrimination (fair treatment, equal access to opportunities, non-discrimination); – diversity as a resource (use of skills and knowledge from a diverse workforce, focusing on diversity between internal and external stakeholders, focus on innovation and creativity, flexibility, responsiveness and agility); – diversity as an inclusive activator (representation of diversity at all levels of the organization, teamwork and collaboration, education and training of diversity staff, conflict resolution processes that are cooperative, evidence of leadership commitment to diversity. Journal of Business Economics and Management, 2022, 23(3): 606–625 613 In total, the independent BP variable contains 11 items, which are scaled using 7-point Likert-type scales (1– not applicable at all, 7– applied in full). After reliability analysis, the Cronbach’s Alfa of the BP was 0.925 (11 items). The second variable, representing the consequence, is the dependent variable– the rate of employee turnover. Based on the literature search, confirming that effective diversity management is reflected in employee job satisfaction, which results in a reduction in their turnover, we chose this variable, which managers identified within the specified intervals. The selected fluctuation rate intervals were 0–5%, 6–10%, more than 10%. The third variable is the mediator variable teamwork climate (TC), which presents transition between the dependent and independent variable. Mediator is directly inserted in the relationship between the independent and the dependent variables and affects the whole model. The independent variable is the cause of the mediator variable, which is then the cause of the dependent variable (MacKinnon, 2008). Our data TC were extracted from the Safety Attitudes Questionnaire (SAQ), a validated tool that obtains six organizational domains– teamwork climate, job satisfaction, perceptions of management, safety climate, working conditions, stress recognition, one of which is teamwork climate (Sexton etal., 2006). The intermediate variable TC contains 6 items that are scaled by 7-point Likert-type scales (1– disagree at all, 7– strongly agree). The Cronbach’s alpha of the TC was 0.884. 3. Results of the research The main aim was to analyze and clarify the link between best practices in diversity and inclusion in companies and the rate of employee turnover, assuming that best practices are positively related with the rate of employee turnover through teamwork climate. The independent variable BP contains 11 items, which are scalable via a 7-factor Liker type scale. The reliability of both variables is satisfactory, specific values are stated in Table3. Table 3. Reliability statistics (source: own research) Item Cronbach’s Alpha N of Items Best practices in diversity management 0.925 11 Teamwork climate 0.884 6 Correlations between analyzed individual variables are shown in the matrix (Table4). To construct it, there were created summary variables– best practices and teamwork climate as the overall average score from the relevant items. The third variable is the degree of fluctuation (employee turnover). The control variables are in the matrix as well. Descriptive statistics of research is also shown in Table4. The correlation matrix shows a significant positive correlation between best practices in diversity management and teamwork climate. There is also a significant negative correlation between the two variables and fluctuation, indicating the use of a mediator model. In mediation, we worked with the established main hypothesis. H: The dependency between best practices in diversity management and employee turnover is mediated by teamwork climate. 620 N. Jankelová et al. The way to business competitiveness: the importance of diversity management and... The policy implication is determining by the key findings of the research. The findings speak in favor of promoting diversity and inclusion at the level of employers, so it also affects societal level. As the results show, diversity can also generates economic benefits. Therefore, the promotion of approaches based on the acceptance of diversity has not only its social, but also its economic rationale.The results of this research paper create space for further research in selected areas of diversity management in companies. At least, it would be relevant to analyze the different types of diversity separately, as well as the mechanism by which the teamwork climate mediates their effect on employee behavior. Funding This research was supported by the Scientific Grants Agency of the Ministry of Education, Science, Research and Sports of Slovak Republic: VEGA Project No. 1/0017/20 Changes in application of management functions in the context of 4.0 industry era and its adaptation processes and VEGA Project No. 1/0412/19 Systems of Human Resources Management in the 4.0 Industry Era. Author contributions Nadežda Jankelová, Zuzana Joniaková conceived the study and were responsible for design and development of the data analysis. Nadežda Jankelová, Zuzana Joniaková were responsible for data collection and analysis. Nadežda Jankelová and Katarína Procházková were responsible for data interpretation and first draft creation. Katarína Procházková was responsible for editing and manuscript administration. Disclosure statement Authors declare there is no conflict of interest and they have not any competing financial, professional and personal interests from other parties. References Abdolshah, M., Khatibi, S. A. M., & Moghimi, M. (2018). Factors influencing job satisfaction of banking sector employees. Journal of Central Banking Theory and Practice, 7(1), 207–222. https://doi.org/10.2478/jcbtp-2018-0009 Ali, M., Lei, S., & Wei, X. (2018). The mediating role of the employee relations climate in the relationship between strategic HRM and organizational performance in Chinese banks. Journal of Innovation & Knowledge, 3(3), 115–122. https://doi.org/10.1016/j.jik.2016.12.003 Ashikali, T., & Groeneveld, S. (2015). Diversity management for all? An empirical analysis of diversity management outcomes across groups. Personnel Review, 44(5), 757–780. https://doi.org/10.1108/PR-10-2014-0216 Ashikali, T., Groeneveld, S., & Kuipers, B. (2020). The role of inclusive leadership in supporting an inclusive climate in diverse public sector teams. Review of Public Personnel Administration, 41(3), 497–519. https://doi.org/10.1177/0734371X19899722 Journal of Business Economics and Management, 2022, 23(3): 606–625 621 Avery, D. R., McKay, P. F., Wilson D. C., & Tonidandel, S. (2007). Unequal attendance: The relationship between race, organizational diversity cues, and absenteeism. Personnel Psychology, 60(4), 875–902. https://doi.org/10.1111/j.1744-6570.2007.00094.x Baron, R., & Kenny, D. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037//0022-3514.51.6.1173 Bogan, E., & Dedeoglu, B. B. (2017). The effects of perceived behavioral integrity of supervisors on employee outcomes: Moderating effects of tenure. Journal of Hospitality Marketing & Management, 26(5), 511–531. https://doi.org/10.1080/19368623.2017.1269711 Cambre, B., Kippers, E., van Veldhoven, M., & De Witte, H. (2012). Jobs and organisations: Explaining group level differences in job satisfaction in the banking sector. Personnel Review, 41(2), 200–215. https://doi.org/10.1108/00483481211200033 Chen, S., Fan, Y., Zhang, G., & Zhang, Y. (2021). Collectivism-oriented human resource management on team creativity: Effects of interpersonal harmony and human resource management strength. The International Journal of Human Resource Management, 32(18), 3805–3832. https://doi.org/10.1080/09585192.2019.1640765 Cizmaș, E., Feder, E.-S., Maticiuc, M.-D., & Vlad-Anghel, S. (2020). Team management, diversity, and performance as key influencing factors of organizational sustainable performance. Sustainability, 12(18), 7414. https://doi.org/10.3390/su12187414 Davis, P. J., Frolova, Y., & Callahan, W. (2016). Workplace diversity management in Australia, equality, diversity and inclusion. International Journal, 35(2), 81–98. https://doi.org/10.1108/EDI-03-2015-0020 De la Torre-Ruiz, J. M., Vidal-Salazar, M. D., & Cordón-Pozo, E. (2019). Employees are satisfied with their benefits, but so what? The consequences of benefit satisfaction on employees’ organizational commitment and turnover intentions. The International Journal of Human Resource Management, 30(13), 2097–2120. https://doi.org/10.1080/09585192.2017.1314315 De Winne, S., Marescaux, E., Sels, L., Van Beveren, I., & Vanormelingen, S. (2019). The impact of employee turnover and turnover volatility on labor productivity: A flexible non-linear approach. The International Journal of Human Resource Management, 30(21), 3049–3079. https://doi.org/10.1080/09585192.2018.1449129 Dobbin, F., & Kalev, A. (2016). Why diversity programs fail. Harvard Business Review. https://hbr.org/2016/07/why-diversity-programs-fail Egerová, D., Jiřincová, M., Lančarič, D., & Savov, R. (2013). Applying the concept of diversity management in organizations in the Czech Republic and the Slovak Republic– a research survey. Technological and Economic Development of Economy, 19(2), 350–366. https://doi.org/10.3846/20294913.2013.798598 El Akremi, A., Colaianni, G., Portoghese, I., Galletta, M., & Battistelli, A. (2014). How organizational support impacts affective commitment and turnover among Italian nurses: A multilevel mediation model. International Journal of Human Resource Management, 25(9), 1185–1207. https://doi.org/10.1080/09585192.2013.826713 Flory, J. A., Leibbrandt, A., Rott, C., & Stoddard, O. (2021). Increasing workplace diversity: Evidence from a recruiting experiment at a Fortune 500 company. Journal of Human Resources, 56(1), 73–92. https://doi.org/10.3368/jhr.56.1.0518-9489R1 Foster, C., & Harris, L. (2005). Easy to say, difficult to do: Diversity management in retail. Human Resource Management Journal, 15(3), 4–17. https://doi.org/10.1111/j.1748-8583.2005.tb00150.x Fu, W., & Deshpande, S. P. (2014). The impact of caring climate, job satisfaction, and organizational commitment on job performance of employees in a China’s insurance company. Journal of Business Ethics, 124(2), 339–349. https://doi.org/10.1007/s10551-013-1876-y 622 N. Jankelová et al. The way to business competitiveness: the importance of diversity management and... Gerpott, F. H., Lehmann-Willenbrock, N., Wenzel, R., & Voelpel, S. C. (2021). Age diversity and learning outcomes in organizational training groups: The role of knowledge sharing and psychological safety. The International Journal of Human Resource Management, 32(18), 3777–3804. https://doi.org/10.1080/09585192.2019.1640763 Gonzalez, J. A., & DeNisi, A. S. (2009). Cross-level effects of demography and diversity climate on organizational attachment and firm effectiveness. Journal of Organizational Behavior, 30(1), 21–40. https://doi.org/10.1002/job.498 Guillaume, Y. R. F., Dawson, J. F., Woods, S. A., Sacramento, C. A., & West, M. A. (2013). Getting diversity at work to work: What we know and what we still don’t know. Journal of Occupational and Organizational Psychology, 86(2), 123–141. https://doi.org/10.1111/joop.12009 Guillon, O., & Cezanne, C. (2014). Employee loyalty and organizational performance: A crucial survey. Journal of Organizational Change Management, 27(5), 839–850. https://doi.org/10.1108/JOCM-02-2014-0025 Han, G. H., & Jekel, M. (2011). The mediating role of job satisfaction between leader-member exchange and turnover intentions. Journal of Nursing Management, 19(1), 41–49. https://doi.org/10.1111/j.1365-2834.2010.01184.x Hancock, J. I., Allen, D. G., Bosco, F. A., McDaniel, K. R., & Pierce, C. A. (2013). Meta-analytic review of employee turnover as a predictor of firm performance. Journal of Management, 39(3), 573–603. https://doi.org/10.1177/0149206311424943 Hargadon, A. B., & Bechky, B. A. (2006). When collections of creatives become creative collectives. Organization Science, 17(4), 484–500. https://doi.org/10.1287/orsc.1060.0200 Hausknecht, J. P., & Holwerda, J. A. (2013). When does employee turnover matter? Dynamic member configurations, productive capacity, and collective performance. Organization Science, 24(1), 210–225. https://doi.org/10.1287/orsc.1110.0720 Hewlett, S. A., Marshall, M., & Sherbin, L. (2013). How diversity can drive Innovation. Harvard Business Review. https://hbr.org/2013/12/how-diversity-can-drive-innovation Holmes, O., Jiang, K., Avery, D. R., McKay, P. F., Oh, I.-S., & Tillman, C. J. (2021). A meta-analysis integrating 25 years of diversity climate research. Journal of Management, 47(6), 1357–1382. https://doi.org/10.1177/0149206320934547 Hom, P. W., Lee, T. W., Shaw, J. D., & Hausknecht, J. P. (2017). One hundred years of employee turnover theory and research. Journal of Applied Psychology, 102(3), 530–545. https://doi.org/10.1037/apl0000103 Hong, J. F., Zhao, X., & Snell, R. S. (2019). Collaborative-based HRM practices and open innovation: A conceptual review. The International Journal of Human Resource Management, 30(1), 31–62. https://doi.org/10.1080/09585192.2018.1511616 Hulsheger, U. R., Anderson, N., & Salgado, J. F. (2009). Team-level predictors of innovation at work: A comprehensive meta-analysis spanning three decades of research. Journal of Applied Psychology, 94(5), 1128–1145. https://doi.org/10.1037/a0015978 Ibanez, M., & Riener, G. (2018). Sorting through affirmative action: Three field experiments in Colombia. Journal of Labor Economics, 36(2), 437–478. https://doi.org/10.1086/694469 Inegbedion, H., Sunda, E., Asaleye, A., Lawal, A., & Adebanji, A. (2020). Managing diversity for organizational efficiency. SAGE Open, 10(1). https://doi.org/10.1177/2158244019900173 Inkson, K., Gunz, H., Ganesh, S., & Roper, J. (2012). Boundaryless careers: Bringing back boundaries. Organization Studies, 33(3), 323–340. https://doi.org/10.1177/0170840611435600 Jelínková, E., & Jiřincová, M. (2015) Diversity management as a tool of managing intellectual capital. Journal of Competitiveness, 7(4), 3–17. https://doi.org/10.7441/joc.2015.04.01 Journal of Business Economics and Management, 2022, 23(3): 606–625 623 Jiřincová, M. (2013). Potential future managers and their opinion on the issue of diversity, inclusion and their possible use in management. Journal of Competitiveness, 5(2), 37–50. https://doi.org/10.7441/joc.2013.02.03 Joshi, A., & Roh, H. (2009). The role of context in work team diversity research: A meta-analytic review. Academy of Management Journal, 52(3), 599–627. https://doi.org/10.5465/amj.2009.41331491 Joshi, K., & Sarker, S. (2007). Knowledge transfer within information systems development teams: Examining the role of knowledge source attributes. Decision Support Systems, 43(2), 322–335. https://doi.org/10.1016/j.dss.2006.10.003 Kaplan, D. M., Wiley, J. W., & Maertz, C. P. (2011). The role of calculative attachment in the relationship between diversity climate and retention. Human Resource Management, 50(2), 271–287. https://doi.org/10.1002/hrm.20413 Kaplan, R. S., & Norton, D. P. (2004). Strateg maps: Converting intangible assets into tangible outcomes. Harvard Business School Publishing Corporation. Kearney, E., & Gebert, D. (2009). Managing diversity and enhancing team outcomes: The promise of transformational leadership. Journal of Applied Psychology, 94(1), 77–89. https://doi.org/10.1037/a0013077 Kim, M.-H., & Yi, Y.-J. (2019). Impact of leader-member-exchange and team-member-exchange on nurses’ job satisfaction and turnover intention. International Nursing Review, 66(2), 242–249. https://doi.org/10.1111/inr.12491 Kooij-de Bode, H. J. M., van Knippenberg, D., & van Ginkel, W. P. (2008). Ethnic diversity and distributed information in group decision making: The importance of information elaboration. Group Dynamics: Theory, Research, and Practice, 12(4), 307–320. https://doi.org/10.1037/1089-2699.12.4.307 Lamberti, G., Aluja Banet, T., & Rialp Criado, J. (2022). Work climate drivers and employee heterogeneity. The International Journal of Human Resource Management, 33(3), 472–504. https://doi.org/10.1080/09585192.2020.1711798 Lauring, J., & Selmer, J. (2011). Multicultural organizations: Does a positive diversity climatepromote performance? European Management Review, 8(2), 81–93. https://doi.org/10.1111/j.1740-4762.2011.01011.x Lee, S., Fernandez, S., & Chang, C. (2018). Job scarcity and voluntary turnover in the U.S. federal bureaucracy. Public Personnel Management, 47(1), 3–25. https://doi.org/10.1177/0091026017732798 Mackie, D. M., Smith, E. R., & Ray, D. G. (2008). Intergroup emotions and intergroup relations. Social and Personality Psychology Compass, 2(5), 1866–1880. https://doi.org/10.1111/j.1751-9004.2008.00130.x MacKinnon, D. P. (2008). Introduction to statistical mediation analysis. Multivariate applications series. Taylor & Francis Group/Lawrence Erlbaum Associates. Madera, J. M., Dawson, M., & Neal, J. A. (2018). Why investing in diversity management matters: Organizational attraction and person–organization fit. Journal of Hospitality & Tourism Research, 42(6), 931–959. https://doi.org/10.1177/1096348016654973 Mamman, A., Kamoche, K., & Bakuwa, R. (2012). Diversity, organizational commitment and organizational citizenship behavior: An organizing framework. Human Resource Management Review, 22(4), 285–302. https://doi.org/10.1016/j.hrmr.2011.12.003 Mayo, A. T. (2020). Teamwork in a pandemic: Insights from management research. BMJ Leader, 4(2), 53–56. https://doi.org/10.1136/leader-2020-000246 Nedkovski, V., Guerci, M., Battisti, F., & Siletti, E. (2017). Organizational ethical climates and employee’s trust in colleagues, the supervisor, and the organization. Journal of Business Research, 71, 19–26. https://doi.org/10.1016/j.jbusres.2016.11.004 Nowak, R. (2020). The effects of cognitive diversity and cohesiveness on absorptive capacity. International Journal of Innovation Management, 24(2), 2050019. https://doi.org/10.1142/S136391962050019X 624 N. Jankelová et al. The way to business competitiveness: the importance of diversity management and... Olsen, J. E., & Martins, L. L. (2012). Understanding organizational diversity management programs: A theoretical framework and directions for future research. Journal of Organizational Behavior, 33(8), 1168–1187. https://doi.org/10.1002/job.1792 Otaye-Ebede, L. (2019). Antecedents and outcomes of managing diversity in a UK context: Test of a mediation model. The International Journal of Human Resource Management, 30(18), 2605–2627. https://doi.org/10.1080/09585192.2016.1253031 Ozbilgin, M., & Tatli, A. (2008). Global diversity management: An evidence-based approach. Palgrave Macmillan. Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. The Annual Review of Psychology, 63, 539–569. https://doi.org/10.1146/annurev-psych-120710-100452 Randel, A. E., Galvin, B. M., Shore, L. M., Ehrhart, K. H., Chung, B. G., Dean, M. A., & Kedharnath, U. (2018). Inclusive leadership: Realizing positive outcomes through belongingness and being valued for uniqueness. Human Resource Management Review, 28(2), 190–203. https://doi.org/10.1016/j.hrmr.2017.07.002 Sabharwal, M., Levine, H., & D’Agostino, M. (2018). A conceptual content analysis of 75 years of diversity research in public administration. Review of Public Personnel Administration, 38(2), 248–267. https://doi.org/10.1177/0734371X16671368 Schreurs, B., Guenter, H., Van Emmerik, I. J. H., Notelaers, G., & Schumacher, D. (2015). Pay level satisfaction and employee outcomes: The moderating effect of autonomy and support climates. International Journal of Human Resource Management, 26(12), 1523–1546. https://doi.org/10.1080/09585192.2014.940992 Sexton, J. B., Helmreich, R. L., Neilands, T. B., Rowan, K., Vella, K., Boyden, J., Roberts, P. R., & Thomas,E. J. (2006). The safety attitudes questionnaire: Psychometric properties, benchmarking data, and emerging research. BMC Health Services Research, 6(1), 44. https://doi.org/10.1186/1472-6963-6-44 Singh, B., Winkel, D. E., & Selvarajan, T. T. (2013). Managing diversity at work: Does psychological safety hold the key to racial differences in employee performance? Journal of Occupational and Organizational Psychology, 86(2), 242–263. https://doi.org/10.1111/joop.12015 Tran, V., Garcia-Prieto, P., & Schneider, S. C. (2011). The role of social identity, appraisal, and emotion in determining responses to diversity management. Human Relations, 64(2), 161–176. https://doi.org/10.1177/0018726710377930 Tufan, P., De Witte, K., & Wendt, H. J. (2019). Diversity-related psychological contract breach and employee work behavior: Insights from intergroup emotions theory. The International Journal of Human Resource Management, 30(20), 2925–2949. https://doi.org/10.1080/09585192.2017.1350733 Van der Vegt, G. S., Bunderson, J. S., & Oosterhof, A. (2006). Expertness diversity and interpersonal helping in teams: Why those who need the most help end up getting the least. Academy of Management Journal, 49(5), 877–893. https://doi.org/10.5465/amj.2006.22798169 Van Dick, R., Van Knippenberg, D., Hägele, S., Guillaume, Y. R. F., & Brodbeck, F. C. (2008). Group diversity and group identification: The moderating role of diversity beliefs. Human Relations, 61(10), 1463–1492. https://doi.org/10.1177/0018726708095711 Van Knippenberg, D., & Schippers, M. C. (2007). Work group diversity. Annual Review of Psychology, 58, 515–541. https://doi.org/10.1146/annurev.psych.58.110405.085546 Van Laer, K., Verbruggen, M., & Janssens, M. (2021). Understanding and addressing unequal career opportunities in the “new career” era: An analysis of the role of structural career boundaries and organizational career management. The International Journal of Human Resource Management, 32(16), 3547–3567. https://doi.org/10.1080/09585192.2019.1660700 Journal of Business Economics and Management, 2022, 23(3): 606–625 625 Wang, J., Leung, K., & Zhou, F. (2014). A dispositional approach to psychological climate: Relationships between interpersonal harmony motives and psychological climate for communication safety. Human Relations, 67(4), 489–515. https://doi.org/10.1177/0018726713495423 Wombacher, J., & Felfe, J. (2017). The interplay of team and organizational commitment in motivating employees’ interteam conflict handling. Academy of Management Journal, 60(4), 1554–1581. https://doi.org/10.5465/amj.2014.0718 Yang, Y., & Konrad, A. M. (2011). Understanding diversity management practices: Implications of institutional theory and resource-based theory. Group and Organization Management, 36(1), 6–38. https://doi.org/10.1177/1059601110390997 Zacher, H., Kooij, D. T. A. M., & Beier, M. E. (2018). Active aging at work: Contributing factors and implications for organizations. Organizational Dynamics, 47(1), 37–45. https://doi.org/10.1016/j.orgdyn.2017.08.001 APPENDIX Notations Abbreviations BC– Best practice in diversity management. TC– Teamwork climate. ET– Employee turnover.