Does firm diversity-enhancement program bundle matter? Firm performance dimensions, employee ownership program, and environmental technological opportunity

Wai Kin Leung, Fiona Kun Yao, Yaping Gong, Song Chang

Research output: Contribution to journalArticlepeer-review


Research on diversity programs provides inconclusive knowledge regarding their effect on firm performance. In this study, we build on the Ability-Motivation-Opportunity framework to examine the relationship between firm diversity-enhancement program bundle and firm performance. Based on a dataset covering 2,794 U.S. publicly listed firms over 15 years, we find support for our hypothesis that firm diversity-enhancement program bundle results in a greater pay-off when it is coupled with a stronger employee ownership program at the firm level or a greater technological opportunity at the industry level. Furthermore, the pay-off is greatest when a firm’s diversity-enhancement program bundle, its employee ownership program, and its environmental technological opportunity are all high. Overall, our study provides nuanced theoretical and empirical accounts regarding a firm’s integrated diversity-enhancement efforts. It also provides novel managerial implications regarding when firms can reap the most benefit from their integrated diversity-enhancement efforts.

Original languageEnglish (US)
Pages (from-to)3051-3078
Number of pages28
JournalInternational Journal of Human Resource Management
Issue number16
StatePublished - 2023


  • Ability-motivation-opportunity approach
  • firm diversity-enhancement program bundle
  • firm performance

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Organizational Behavior and Human Resource Management
  • Strategy and Management

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