The moderating role of diversity management in the relationship between absorptive capacity and innovation: a quantitative study

Abstract

Purpose  This study aims to measure the effect of diversity management on the relationships between potential and realized absorptive capacity and between realized absorptive capacity and innovation capacity.

Theoretical framework  This research is based on studies that consider absorptive capacity as an essential factor for innovation (Camisón & Forés, 2010; Flatten et al., 2011) and on the literature addressing the positive impact of diversity on creativity and innovation (Cox & Blake, 1991; Ashikali & Groeneveld, 2015; Mor Barak et al., 2016).

Design/methodology/approach  We developed and validated an instrument to measure the relationship between the constructs, then collected data and obtained 405 valid responses. We tested the hypotheses using partial least squares structural equation modeling (PLS-SEM).

Findings  The results indicate that diversity management has a direct effect on innovation capacity and positively moderates the relationship between absorptive capacity and innovation, reinforcing its strategic role in organizational performance.

Practical & social implications of research  In a context of weakening diversity and inclusion policies, this study supports valuing them as relevant organizational practices. The findings suggest that diversity not only promotes inclusion but also enhances innovation potential by fostering collaborative and knowledge-sharing environments.

Originality/value  The main contribution of this research lies in empirically demonstrating how diversity management moderates the conversion of knowledge into innovation, addressing an important gap in the literature (Yadav & Lenka, 2020) and providing practical guidelines for managers.

Keywords:
Diversity management; absorptive capacity; innovation capability; structural equation modeling; PLS-SEM