Do external diversity practices boost focal firm performance? The case of supplier diversity

Based on the resource-based view, we propose that external diversity practices such as supplier diversity may affect firm performance. We find that the relationship between supplier diversity and short-term performance (i.e. productivity) is moderated by context such that firms in declining industri...

Full description

Bibliographic Details
Main Authors: Richard, O., Su, W., Peng, Mike, Miller, C.
Format: Journal Article
Published: Routledge 2015
Online Access:http://hdl.handle.net/20.500.11937/49987
_version_ 1848758366782881792
author Richard, O.
Su, W.
Peng, Mike
Miller, C.
author_facet Richard, O.
Su, W.
Peng, Mike
Miller, C.
author_sort Richard, O.
building Curtin Institutional Repository
collection Online Access
description Based on the resource-based view, we propose that external diversity practices such as supplier diversity may affect firm performance. We find that the relationship between supplier diversity and short-term performance (i.e. productivity) is moderated by context such that firms in declining industries experience positive productivity effects while firms in munificent industries witness negative effects. For longer-term profitability (i.e. Tobin's q), we do not find support for a positive relationship between supplier diversity and long-term performance. However, positive supplier diversity effects emerge in munificent environments. Overall, in support of the strategic human resource management approach, we conclude that the effect of external supplier diversity on firm performance is contingent upon environmental munificence, which documented the necessity to include supplier diversity as a relevant component of a comprehensive diversity and equality management system.
first_indexed 2025-11-14T09:42:51Z
format Journal Article
id curtin-20.500.11937-49987
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T09:42:51Z
publishDate 2015
publisher Routledge
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-499872017-09-13T15:37:03Z Do external diversity practices boost focal firm performance? The case of supplier diversity Richard, O. Su, W. Peng, Mike Miller, C. Based on the resource-based view, we propose that external diversity practices such as supplier diversity may affect firm performance. We find that the relationship between supplier diversity and short-term performance (i.e. productivity) is moderated by context such that firms in declining industries experience positive productivity effects while firms in munificent industries witness negative effects. For longer-term profitability (i.e. Tobin's q), we do not find support for a positive relationship between supplier diversity and long-term performance. However, positive supplier diversity effects emerge in munificent environments. Overall, in support of the strategic human resource management approach, we conclude that the effect of external supplier diversity on firm performance is contingent upon environmental munificence, which documented the necessity to include supplier diversity as a relevant component of a comprehensive diversity and equality management system. 2015 Journal Article http://hdl.handle.net/20.500.11937/49987 10.1080/09585192.2014.985324 Routledge restricted
spellingShingle Richard, O.
Su, W.
Peng, Mike
Miller, C.
Do external diversity practices boost focal firm performance? The case of supplier diversity
title Do external diversity practices boost focal firm performance? The case of supplier diversity
title_full Do external diversity practices boost focal firm performance? The case of supplier diversity
title_fullStr Do external diversity practices boost focal firm performance? The case of supplier diversity
title_full_unstemmed Do external diversity practices boost focal firm performance? The case of supplier diversity
title_short Do external diversity practices boost focal firm performance? The case of supplier diversity
title_sort do external diversity practices boost focal firm performance? the case of supplier diversity
url http://hdl.handle.net/20.500.11937/49987