Moderating effects of workforce diversity on the relationship between entrepreneurial orientation and organizational performance

In today's global environment capital resources are interconnected throughout the world. Resources are moving freely from one part of the world to another, which provide organizations with ample capital resources and diverse human capital. The need of diversity increased after the Industrial Revolution and the formation of trade and employee unions within EU countries. It is not uncommon for a multinational company to have its finance department headed by American, recruitment department headed by Asian and operations run by Indian employees. The diverse workforce or workforce diversity is a two-sided sword, it has some negative, and some positive aspects attached to it. The aim of this Thesis is to critically review the moderating effect of diverse workforce on the relationship between entrepreneurial orientation and performance of an organization. Great work have been done on the defining different aspects of diversity and managing the diverse workforce but very little work is found that truly gauge the impact of diversity in nurturing entrepreneurial traits in organization that are connect to the better performance of an organization. Paper discusses moderating effect of diversity on all three aspects of Entrepreneurial orientation i.e. Innovation, Proactiveness and Risk-taking.