Relationship of Business Diversities to Economic Growth

The study was limited to determine the diversities in the business and their significant effects to the company’s economic growth and development. Thus, encouraged the organization to provide effective management on each diversities. References used in finding out the answers to the research questions include journal articles and a book. A research on banking industry showed the analytical foundation and theoretical framework of diversities that provide essential value and advantage in terms of firm’s competitiveness (Richard, 2000).

The data were gathered through resource-based framework and relied on the organization member’s demographic conception. Hence, investigating the connection between cultural diversity specifically racial, business strategy, and firm performance. Finally, it was proven that cultural diversity escalated the human capital which served as an asset in firm’s performance that combined the knowledge, skills, and capabilities of individuals. On the contrary, diversities were viewed as bad for economic growth of a business. With the number of possible transmission channels, diversity on ethnicity and nationality directly influenced the economic growth in a negative way. During the period from 1960 to 1999, 95 countries validated the results stated wherein diversities have negative effect to economic growth (Goren, 2014). Diversity and performance was negatively associated with each other because of the conflict on group processes in a competitive business unit (Kochan, et al. , 2003). Moreover, diversity on gender, sexual orientation, and other characteristics have generated discrimination. Hence, those involved cannot carry out and execute their full potential to contribute whenever they are needed in an organization.

Discrimination caused organizations and companies to be less innovative and less competitive in the global environment. The two upper mentioned studies suggested that business diversities have an impact in an organization or a company in terms of economic growth. Business diversities have good effect when it came to uplifting the economy of a company through combination of various expertise, skills, education, physical ability, and personality of diverse individuals. However, it brought up discrimination among individuals in an organization that made it difficult for a team to process. In this study, the parallel line between the pros and cons of business diversities affecting the economic growth of a company was further evaluated.