Skip to main content
alam.amiki@gmail.com 6281260272238
Register
Articles

A Review on Culture Diversity in Companies to Improve Competitiveness

  • 1* Universitas Sumatera Utara

* Corresponding Author: Agustina Dian Putri

Open Access
DOI
https://doi.org/10.59431/ijer.v3i2.190
Published
Pages
43-52

Issue

Vol. 3 No. 2 (2023)

Indonesian Journal Economic Review (IJER)
October

Abstract

Purpose: The purpose of this study is to bring together the disparate literature on culture diversity, as well as to shed light on future research avenues in the field of culture diversity management. Design/Methodology: This research looked at a variety of empirical and conceptual studies on culture diversity and its implications. Using the literature published between 2000 and 2022. The paper uses secondary data gathered for the review of culture diversity. Findings: The literature evaluation was assigned to focus on cultural diversity in the workplace. Through this review, it is clear to understand the implications of cultural diversity in the modern era. According to the findings of the review, there are many studies in diversity and their results from the past few years. Further studies are needed both to add future sources of literature on diversity, especially cultural diversity in the workplace. Research limitations/implications: Because the main aim is to make only a detailed literary review and bring up different views about culture diversity, there are no theoretical interpretations nor personal critiques about the writers’ different perspectives in the paper. Practical Implication: This study examines the effectiveness of literature review in expanding existing knowledge in a particular area and formulating research prospects for future studies for researchers. Originality/Value: This study contributes theoretical perspectives as the key to managing diversity and developing diverse organizations.

Keywords

Culture Diversity Culture Diversity Management Dimension Employee Performance

How to Cite

Putri, A. D. (2023). A Review on Culture Diversity in Companies to Improve Competitiveness. Indonesian Journal Economic Review (IJER), 3(2), 43-52. https://doi.org/10.59431/ijer.v3i2.190

References

  • Kahn, Alam Nojiul. (2020). The Impact of Multicultural Working Environment to Job Satisfaction. Tallinn University of Technology: School of Business and Governance.
  • Distefano, J. J., & Maznevski, M. L., (2000), Creating Value with Diverse Teams in Global Management, Organizational Dynamics, 29 (1), 45-63.
  • Ayega, Emily Nyanchama & Stephen Muath. (2018). Critical Review of Literature on Cultural Diversity in the Workplace and Organizational Performance: A Research Agenda. Journal of Human Resource Management, 6(1), 9-17.
  • Ishaq, Zahra Gulead Bait & Bambang Rizki Pratomo. Impact of Cultural Diversity on Organizational Performance in Ooredoo Oman. Journal of Student Research, 1-8
  • Lakshmipathiaiah M.G. (2020). Effects Of Cultural Diversity in The Workplace. Journal Of Emerging Technologies and Innovative Research (Jetir), Vol 7(10), 1056-1059
  • Balamurugan, G & B. Santhiya. (2020). Cultural Diversity among the Employees and its Effect in Organizational Climate. International Journal of Engineering and Management Research, 10(1), 84-86
  • Maham, Raj. (2013). To Recognize Cultural Diversity that Influences Knowledge Sharing in an Organization. International Review of Management and Business Research, 2, 1092-1100.
  • Mousa, Mohamead & Ruth Alas. (2016). Cultural Diversity and Organizational Commitment: A Study on Teachers of Primary Public Schools in Menoufia (Egypt). International Business Research, 9, 154-163
  • Mazur, Barbara. (2010). Cultural Diversity in Organisational Theory and Practice. Journal of Intercultural Management, 5, 5-15
  • Menon, K. R. Vrinda & Kemthose Paul. (2019). Impact Of Indian Cultural Diversity on Enterprise Resource Planning Implementation Success. Global Journal of Engineering Science and Research Management, 8, 18-22
  • Amaram, Donatus I. (2007). Cultural Diversity: Implication for Workplace Management. Journal of Diversity Management, 2(4), 1-6
  • Leng, Chua Zi & Dr. Rashad Yazdanifard. (2014). The Relationship between Cultural Diversity and Workplace Bullying in Multinational Enterprises. Global Journal of Management and Business Research: An Administration and Management, Vol.14, No.6
  • Mihaela & Sergiu Octavian. (2018). The Influence of Cultural Differences and It’s Application in Multinational Organization. Management Dynamic in the Knowledge Economy, 6, 405-422
  • Stahl, Gunter K et al. (2009). Unravelling the effects of cultural diversity in teams: A meta-analysis of research on multicultural work groups. Journal of International Business Studies, 1-19
  • Abdullah, Zulhamri. (2007). Towards International Cultural Diversity Management of Public Relations: Viewpoints of Chairmen/CEOs. Int.Journal of Economics and Management, 2, 285-299
  • Lauring, Jacob. (2009). Managing cultural diversity and the process of knowledge sharing: A case from Denmark. Scandinavian Journal of Management, 25, 385-394
  • Don-Solomon, A., & Fakidouma, P. (2021). Managing Cultural Diversity: Implication for Organizational Innovativeness. European Journal of Business and Management Research, 6(4). DOI: http://dx.doi.org/10.24018/ejbmr.2021.6.4.1031
  • Molnar, Darin. R. (2007). Serving the World: a cross-cultural study of national culture dimensions and servant leadership. dissertations publishing.
  • Beugelsdijk, S., & Welzel, C. (2018). Dimensions and Dynamics of National Culture: Synthesizing Hofstede with Inglehart. Journal of Cross-Cultural Psychology. Vol. 49(10) 1469–1505
  • Celik, M., & Keser, A. (2018). The Relationship Between Cultural Diversity and Cultural Intelligence: A Cross-Cultural Research. International Journal of Advanced Intelligence Paradigms.
  • Diamastuti, E., Nastiti, T., & Khoirina, M. (2020). The influence of hofstede’s cultural dimensions on corporate social responsibility implementation: a study on state-owned companies in Java, Indonesia. The Indonesian Accounting Review, Vol. 10, No. 2, 117 - 133.
  • Ab-Latif, Z., Asilah, A. M., Zalina, I., Fazhana, I., & Shaibatul’ Islamiah, C.M. (2020). Cultural Value Diversity: Influence towards Multicultural Teamwork Performance among Restaurant Employees. Journal Of Vocational Education Studies (JOVES), 3(2), 106-117.
  • Hofstede, G. (2011). Dimensional zing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture, International Associaton for Cross-Cultural Psychology, https://scholarworks.gvsu.edu/orpc/vol2/iss1/8.
  • Yoo, B., Donthu, N., & Lenartowicz, T. (2011). Measuring Hofstede’s Five Dimensions of Cultural Values at the Individual Level: Development and Validation of CVSCALE. Journal of International Consumer Marketing.
  • Martin, Gillian Coote. (2014). The Effect of Cultural Diversity in The Workplace. Journal of Diversity Management, Volume 9, No.2.
  • Raewf, Manaf B & Yazen N. Mahmood. (2021). The Cultural Diversity in The Workplace. Cihan University-Erbil Journal of Humanities and Social Sciences, 5, 1-6.
  • Rumana, Abdiwahid A & Dr. Cecilia Mutuku. (2017). Effect of Age and Culture Diversity on the Performance Quality Control Organizations in Nairobi County, Kenya. Stratford Peer Reviewed Journals and Book Publishing, 1, 1-13.
  • Samuel, Ajiri Peter & Hillary Odiakaose Odor. (2018). Managing Diversity at Work: Key to Organizational Survival. European Journal of Business and Management, Vol.10, No.16.
  • Jayasundera, Aloma & Babu George. (2018). Cross-Cultural Issues in Employee Performance and Talent Management in The Middle East. Palermo Business Review, 11-36
  • Chaturvedi, Kriti. (2022). Impact of Cross-Cultural Diversity on Organizational Productivity. International Journal of Research in Engineering, Science and Management, Vol.5, No.2.
  • Pless, Nicola M & Thomas Maak. (2004). Building an Inclusive Diversity Culture: Principles, Processes and Practice. Journal of Business Ethics, 5, 129-147.
  • Anton, Marta Badeness & Alma Maria Rodriguez Sanchez. Practices to Manage Cultural Diversity in Work Teams. University Jaume I: FJCE.
  • Cherian, Jacob et al. (2020). The Role of Cultural Diversity and How They Impact Work Team Performance. International Journal of Mechanical Engineering and Technology (IJMET), 11, 11-22.
  • Goswami, Senjuti & Easwaramoorthy Rangaswamy. (2019). Managing Cultural Diversity at Workplace: The Hr Challenge and Its Impact on Organizational Performance - A Study of Singapore. International Journal on Recent Trends in Business and Tourism, Vol. 3.
  • Bana, Wahida Mahmud et al. (2016). Effect of Organizational Culture on Workplace Diversity in Public Universities in Kenya. International Journal of Education and Research, Vol.4, No.8.
  • Ukachukwu, Chukwuma C & Iheriohanma, E. B. J. (2013). The Effect of Cultural Diversity on Employee Productivity in Work Organizations in Port Harcourt, Nigeria. International Journal of Development and Management Review (Injodemar), Vol.8, No.1
  • Padilla, Amado M & William Perez. (2003). Acculturation, Social Identity, and Social Cognition: A New Perspective. Hispanic Journal of Behavioural Sciences, Vol 25(1), 35-55.
  • Khumalo, Philani M & Robert W. D. Zondo. (2021). Perception of the influence of cultural diversity on business performance in the automotive component manufacturing in South Africa. SA Journal of Human Resources Management, Vol.19.
  • Gavetti, G., H.R. Greve, D.A. Levinthal, W. Ocasio. (2012). The Behavioural Theory of the Firm: Assessment and Prospects. Academy of Management Annals. 6 (4): 94-118.
  • Teodorescu, T., (2006), Competence versus competency. What is the difference? Performance Improvement Journal. 45 (1): 10- 22.
  • Gangani, N., McLean, G.N., Braden, R. A. (2006). A competency-based human resources development strategy. Performance Improvement Journal. 19 (1): 122-134.
  • Raisi, Maathir Yousuf Al, et al. (2019). The Effect of Cultural Diversity on Employees’ Performance and Productivity in Shell Oman Marketing Company S.A.O.G. International Journal of Multidisciplinary Research and Publications, 1, 14-19.
  • Qiaoxin, Ma & Liswandi. (2018). Analysis of Cultural Diversity Factors Influencing Employees Satisfaction. International Journal of Management, Accounting and Economics, 5(12), 955-965
  • Yalage, Malith. (2018). Do people feel better when they work in a diverse team. The Faculty of Economics and Business.
  • Kowo, Solomon AKPOVIRORO & Sabitu Owotutu Olalekan. (2018). The Impact of Cultural Diversity on Organizational Performance of Selected Frozen Fish Companies in Nigeria. IJARIIE, Vol 4(3), 420-428
  • Darwin Lie, Sofiyan et al. (2022). Antecedents and Consequences of Employee Job Satisfaction in Indonesia. Applied Quantitative Analysis (AOA), Vol 1 (2), 1-14
  • Inegbedion, H., Eze, S., Abiola, A., Adedoyin, L., Ayeni, A. (2020). Managing Diversity for Organizational Efficiency. Journal Sagepub. DOI:1177/2158224019900173: 1-10.
  • Aji, A., L., D. & Tiyas, N., H. (2017). Diversity In Work Realm: Opportunity and Threat to Disability. Spirit Publik Volume 12. 12 (2): 83-93.
  • Patrick, H. A., & Vincent R, K. (2012). Managing Workplace Diversity: Issues And Challenges. Sage Journal. DOI: 10.1177/2158244012444615: 1-15.
  • Ely, R. J. & Thomas, D. A. (2001). Cultural Diversity at Work: The Effect of Diversity Perspective on Workgroup Process and Outcomes. Administrative Science Quarterly. 46(1), 229-273.
  • Ponomareva, Y., Timur, U., Virginia, B., & Karl, W. (2022). Cultural Diversity in Top Management Teams: Review and Agenda for Future Research. Journal of World Business. 57 (1): 301-328.
  • Schmid, S., & Dauth, T. (2014). Does Internationalization Make a Difference? Stock Market Reaction to Announcements of International Top Executive Appointments. Journal of World Business. 49 (1): 63-77.
  • Sasaki, L., & Yoshika, K. (2014). Going Beyond National Cultures – Dynamic Interaction Between Intra-National, Regional, And Organizational Realities. Journal of World Business. 49(3): 455-464.
  • Richard, O. C., Barnett, T., Dwyer, S., & Chadwick, K. (2004). Cultural Diversity in Management, Firm Performance, And the Moderating Role of Entrepreneurial Orientation Dimensions. Academy of Management Journal, 47(1), 255-266.
  • Joecks, J., Pull, K. and Vetter, K. (2013), Gender Diversity in The Boardroom and Firm Performance: What Exactly Constitutes A “Critical Mass. Journal of Business Ethics, 118 (1), 61-72.
  • Caligiuri, P., Lazarova, M., Zehetbauer, S. (2004). Top manager’s national diversity and boundary spanning: Attitudinal indicator of a firm internationalism. Journal of Management Development. 23(1):848-859.
  • Smale, T. (2016), Why National Culture Should Be at The Heart of Innovation Management, Technology Innovation Management Review. 6(4), 18-25.
  • Jones, G., Bernardita, C. C., & Justin, W. (2020). Cultural diversity drives innovation: empowering teams for success. International Journal of Innovation Science. 12 (3): 323-343.
  • Orsini, P. & Magnier-Watanabe, R. (2022). Foreign Coworker Nationality, Cultural Distance, And Perception of Cultural Diversity in The Workplace. Journal of Asia Business Studies. https://doi.org/10.1108/JABS-10-2021-0413.
  • Kadam, R., Rao, S.A., Kareem Abdul, W. and Jabeen, S.S. (2020). Diversity Climate Perceptions and Its Impact on Multicultural Team Innovation and Performance. Measuring Business Excellence, 24 (3), 301-318.
  • Puia, G. and Ofori‐Dankwa, J. (2013). The Effects of National Culture and Ethno‐linguistic Diversity on Innovativeness. Baltic Journal of Management. 8 (3): 349-371.
  • Hofhuis, J. (2022). Comparing cultural diversity perspectives among public service employees in the Netherlands in 2008 and 2018. Equality, Diversity, and Inclusion Journal. 41 (5) :726-738.
  • Gojinetchi, Veronica. (2020). The Importance of Cultural Diversity and its Effect on Organisational Performance. National College of Ireland.

Author Biographies

  • Agustina Dian Putri, Universitas Sumatera Utara

    Magister of Management Science, Faculty of Economic and Business, Universitas Sumatera Utara, Medan, Indonesia.

License

Copyright (c) 2023 Indonesian Journal Economic Review (IJER)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This is an open-access journal. All articles are distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Under this license, you are free to:

  • Share: Copy and redistribute the material in any medium or format.
  • Adapt: Remix, transform, and build upon the material for any purpose, even commercially.

Attribution Requirements:
You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.

Copyright and Retention:
Authors retain copyright without restrictions and grant this journal the right of first publication under an open-access model. The journal retains non-exclusive publishing rights for archiving, indexing, and scholarly dissemination.

Usage Statistics

Similar Articles

View all similar articles