RELATIONSHIP BETWEEN WORKPLACE DIVERSITY & INNOVATION PERFORMANCE: PRESENT STATUS AND FUTURE AVENUES

Abstract

This study investigates the impact of workplace diversity on innovation performance within commercial banks in Pakistan’s banking industry. The research aims to explore how demographic, cognitive & functional diversity influence innovation processes and outcomes, and to identify organizational factors that facilitate or impede this relationship in the commercial banking context. Data were collected through semi-structured interviews with 20 employees working in various roles across multiple commercial banks. The participants were purposively selected to ensure the diverse perspectives. Thematic analysis was employed to interpret interview data, highlighting key themes around diversity’s role in fostering creativity, collaboration, and innovative problem-solving. The findings reveal that workplace diversity contributes towards innovation performance in complex, conditional ways. Demographic diversity boosts market-centric innovation when combined with inclusive leadership and representational influence but depends on integrative structures and shared accountability. Leadership inclusiveness & culture were identified as vital mediating factors in translating diversity into innovation outcomes. These insights underscore that diversity alone is insufficient, its impact depends on how it is embedded, and managed within institutional frameworks.