Cultural Diversity and Management Performance in Multinational Companies

Abstract

This study aimed to determine how multinational corporations' (MNCs') cultural diversity management methods impacted their organizational performance. The study is a cross-sectional survey that uses a questionnaire to collect data from 208 of the 464 employees of multinational corporations. Utilizing Spearman's rank order correlation coefficient, the relationship between cultural diversity management components (investment, assimilation, and divestment) and a measure of organizational success was analyzed (creativity). Any of the data demonstrated statistically significant correlations, ruling out all other options. It was determined that the practice of investiture, assimilation, and divestiture strengthens the bonds between employees within the organization and provides them with solid, enabling grounds to grow in self-awareness and productivity, which ultimately benefits the bottom line of MNCs operating in Saudi Arabia, particularly in the eastern provinces. To enhance employee education and group cohesion, it was recommended that businesses establish mechanisms to encourage the adoption of strategies such as investiture, assimilation, and divestment in the workplace.

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