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

    Access Status
    Fulltext not available
    Authors
    Richard, O.
    Su, W.
    Peng, Mike
    Miller, C.
    Date
    2015
    Type
    Journal Article
    
    Metadata
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    Citation
    Richard, O. and Su, W. and Peng, M. and Miller, C. 2015. Do external diversity practices boost focal firm performance? The case of supplier diversity. International Journal of Human Resource Management. 26 (17): pp. 2227-2247.
    Source Title
    International Journal of Human Resource Management
    DOI
    10.1080/09585192.2014.985324
    ISSN
    0958-5192
    School
    School of Management
    URI
    http://hdl.handle.net/20.500.11937/49987
    Collection
    • Curtin Research Publications
    Abstract

    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.

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