Effect Of Workforce Diversity On Organizational Performance In Banking Industry Of Ethiopia The Mediating Role Of Cultural Intelligence And Innovation

The study aimed to analyze the mediating effects of cultural intelligence and innovation in the relationship between workforce diversity and organizational performance in the Ethiopian banking industry. Employees of Ethiopian banks established the study setting and simple random sampling was used to select 195 study participants. The research followed a quantitative approach, explanatory design, survey method, and questionnaire as data collection instrument. The study employed exploratory factor analysis (EFA) to identify a battery of factor structures and SEM to identify the measurement model and structural model. The structural model was validated using confirmatory factor analysis (CFA). Convergent and discriminant validity tests were carried to ensure construct validity of the study’s measurement instruments. The findings of the study revealed both cultural intelligence and innovation significantly mediate the relationship between organizational performance and workforce diversity. Both mediators had a complimentary partial mediation role in the relationship between workforce diversity and organizational performance. The result also indicated that gender diversity, religious diversity, and age diversity are significantly and positively related to organizational performance while work experience diversity and ethnic diversity did not

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