Role of diversity management and charismatic leadership on innovation and performance in the globalized era

Abstract

Objective of the Study: The purpose of this study was to analyze the relationships between the variables of diversity management, charismatic leadership, innovation speed, innovation performance, and company performance.Methodology/Approach: A survey study was conducted with 427 employees (both technicians and engineers) working at companies that operated in the manufacturing industry in the scope of the research purpose. SPSS 25 and SPSS AMOS programs were used incrementally, and the acquired data were evaluated and analyzed.Originality/Relevance: In this research, white-collar workers constituted our sampling group because they play a key role in product innovation. While gathering the analysis data, the first 500 companies registered in Istanbul Chamber of Industry were determined, and manufacturing companies operating in Istanbul constituted the main part of the study.Main Results: As a result of the analysis, it is understood that diversity management and charismatic leadership have a positive influence on innovation and performance.Theoretical/Methodological Contribution: In terms of innovation and company performance, the study revealed the mediation effect of charismatic leadership linked to diversity management.Social/management contributions: In order for organizations to carry out creative and innovative activities, it is very important to effectively manage different ideas and thoughts within organizations. In fact, charismatic leadership positively affects employees, helping them to perform better. Therefore, employees must be actively involved in order to successfully carry out innovation.