A heuristic model for explaining diversity's paradox

Abstract

Purpose – The purpose of this paper is to present a heuristic model to better understand the inherently paradoxical and concomitant positive and negative organizational outcomes associated with demographic diversity and value congruence in organizations. It further illustrates the resultant organizational dynamics that result from shifting levels of diversity and value congruence. Design/methodology/approach – This paper adopts the supply and demand heuristic from the economics discipline and further develops the diversity and similarity curves (DSC) model proposed by Ofori-Dankwa and Julian. Further, this analysis is carried out from both short-run (static) and long-run (dynamic) perspectives. Findings – This study illustrates how different levels of organizational diversity and value congruence (reflected by diversity and similarity curves respectively) could concurrently result in both positive and negative levels of organizational creativity and competitiveness. Research limitations/implications – As a heuristic, this study's model is a simplistic representation of the inherently complex set of relationships and outcomes that are associated with paradox in a social setting. Practical implications – This model has managerial utility for explaining how different levels of diversity in an organizational setting could potentially have different positive and negative outcomes. Originality/value – This study unpacks the implications of different levels of diversity in an organizational setting and sheds original light on the dynamic nature of virtuous and vicious organizational cycles associated with diversity.