Linkage of Cultural and Gender Diversity with Productivity in Chikankari Industry of Lucknow

Cultural diversity is essential for the productivity and competitive advantage of a firm. The sociocultural diversity of workers and entrepreneurs brings innovative ideas and knowledge to increase the firm’s output, which is challenging to capture in the production function. This article highlights that the female workers use their social and cultural capital (SCC) and network as a bridge to get the work. Analysis based on OLS regression shows that labour and capital are significant for output and that gender diversity helps increase the firm productivity. However, the social structures and informal nature of the industry reduce the bargaining power of women. The interlinkage between diversity and social capital are critical factors behind the origin of the chikankari industry. It is the driving force behind the sustenance of the industry and firm productivity.