Do external diversity practices boost focal firm performance? The case of supplier diversity

Orlando C. Richard, Weichieh Su, Mike W. Peng, Carliss D. Miller

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

Based on the resource-based view, we propose that external diversity practices such as supplier diversity may affect firm performance. We find that the relationship between supplier diversity and short-term performance (i.e. productivity) is moderated by context such that firms in declining industries experience positive productivity effects while firms in munificent industries witness negative effects. For longer-term profitability (i.e. Tobin's q), we do not find support for a positive relationship between supplier diversity and long-term performance. However, positive supplier diversity effects emerge in munificent environments. Overall, in support of the strategic human resource management approach, we conclude that the effect of external supplier diversity on firm performance is contingent upon environmental munificence, which documented the necessity to include supplier diversity as a relevant component of a comprehensive diversity and equality management system.

Original languageEnglish
Pages (from-to)2227-2247
Number of pages21
JournalInternational Journal of Human Resource Management
Volume26
Issue number17
DOIs
Publication statusPublished - Sep 25 2015
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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