Abstract:
This research aims to examine the effect of diverse workplace environment (inclusion and
equity) practices on employee competitiveness. It investigates the role of work group inclusion (WGI)
and diversity-oriented leadership (DOL) in this relationship. The purposive sampling technique was
used to conduct a primary survey of 542 employees of the hospitality industry through a closed-ended
questionnaire. The partial least squares structural equation modeling technique was employed to
analyze the data. The findings of this research indicate that in a diverse environment, inclusion and
equity practices play a constructive role in employee creativity, allowing the development of novel
ideas and innovative products. They build employees’ resilience skills to deal with unprecedented
situations (e.g., COVID-19). The findings also suggest that WGI plays a positive mediating role by
enabling the exchange of ideas within teams in diverse workplace environments, which leads to
employee competitiveness. Results also suggest that DOL has a significant moderating effect on the
relationship between diversity and employee competitiveness, but an insignificant effect on the
relationship between diversity and WGI. This research opens new avenues for scholars to conduct
separate studies on the three validated competencies (creativity, productivity, and resilience). Finally,
it informs practitioners about the development of inclusive and equitable practices to build employee
competitiveness.
