In-group and out-group behavior in Indian multinational corporations: An analysis of its implications on organizational performance

Abstract

The purpose of this study is to investigate in-group and out-group dynamics within multinational corporations in India and their influence on organizational performance. The paper uses concurrent triangulation. Primary data were gathered via a purposive sample of 500 employees across various demographic backgrounds, ensuring diversity. Respondents participated in an online survey and a few in-depth interviews, administered in-person or online, capturing their experiences of group dynamics. Survey data were analyzed using R, SPSS, and SAS, while thematic analysis was applied to in-depth interview transcripts using NVivo software. The study also employed descriptive statistics, ANOVA, MANOVA for the survey and thematic analysis for interviews, revealing the depth and complexity of in-group favoritism. In-group members have reported significantly higher levels of communication, trust, cooperation, conflict management, and innovation, indicating the impact of group dynamics on organizational performance. The outcome of the multivariate analysis of variance (MANOVA) demonstrates a substantial impact of in-group/out-group categorization on the amalgamated dependent variables (evidenced by a Wilks’ Lambda value of 0.68, F (5,94) = 4.17, p < .001). This suggests a noteworthy influence of in-group/out-group affinities on overall team efficacy. The insights offer concrete strategies to enhance inclusivity amid diversity within multinational corporations, thereby mitigating group bias and promoting organizational performance. This study not only expands the understanding of group dynamics in Indian multinational corporations but also offers valuable guidance for managerial practices.