You are on page 1of 19

Re-examining diversity as a doubleedged sword

for innovation process

BUS 520;4


Sumit Mahanta

142 1742 660

Mousumi Lokman Muna

161 2086 660

Mousumi Sarker Akhi

161 2085 660

Tanvir Rahman Rakib

161 2069 060

Md. Mahade Hasan Shishir

153 1482 660


1. Siran Zhan
2. Namrita Bendapudi
3. Ying-yi Hong

Key Words
1 . Diversity
2. Ethnic Diversity
3. Cultural Diversity
4. Ethnic polarization
5. Innovation
6. Innovation process
7. Diversity Management
8. Cross-cultural Management

Introduction/ Summary
Identifying the what is diversity & Innovation.

The role of innovation input on innovation output.

Difference between diversity of ethnic grouping categories

& category of culture . How those group effect the creativity
& innovation.

Digging deep to find any other reason which affect the

process of creativity & innovation.

Introduction / Summary



/ Disparity
Dissimilarity to be

Diversity with social

grouping categories

examined in terms of
cultural contents, i.e.

Diversity with
cultural distance

worldviews, and implicit
beliefs between diversity
with these groups

Objectives [cont.]
To make a research on the
mechanisms that cultural
diversity can contribute to
the innovation of a nation

To find out how ethnocultural diversity affects

creativity and innovation.

Global Innovation Index (GII)

Innovation input: National innovation capacity


Human capital



Market sophistication &

Business sophistication

Innovation output: Innovation performance

Knowledge & technology: knowledge creation, impact, and


Creative : intangible assets, creative goods and services and

online creativity

Used input and output score in analysis

Methodology [cont.]
Fractionalization indices: Commonly
used in economic research

Formula of Blaus index

Contain biological descent & level of disaggregation

Large sample size

Classification is needed to index computation of cultural diversity

Cultural fractionalization: Capture linguistic


Relationship between languages

Fearons (2003) derived ethnic group on the basis of descent

Polarization index:

Montalvo & Reynal-Querol (2005)

Classification based on group identity and classisifaction

Control variables:

control percentage of total value add

accounted for by industries generating large numbers of innovations, democracy,
geographical conditions


Conceptual and Empirical disentangle of Unique

influence of ethno cultural diversity, ethnic grouping
categories and cultural distances.

Affect of ethnic diversity and cultural diversity on

innovation process

Diversity and creativity Relationship.

Findings [Cont.]
Successful Diversity Management Process

Common Organizational Identity

Team building culturally distant rather than similar

Output of a positive relationship between cultural

diversity and innovation


Present research is showing conceptual and

empirical difference between ethnic and cultural

Using the model and data we have found that:

1. Ethnic diversity dampens innovation input which
in turn impairs innovation output
2. Cultural diversity has a direct enhancing effect
on innovation output over and above the
contribution of innovation input only when ethnic
polarization is low