Master of Business Administration Executive

Faculty / School

School of Business Studies (SBS)

Year of Award



Dr. Shahid R. Mir, Assistant Professor, Department of Management

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

This research paper aims to investigate the effect of cultural diversity on perceived organization innovation in Pakistan’s evolving workplaces, while considering intrinsic motivation and affective commitment as potential moderating factors. In order to test the hypotheses of this research study, regression analyses were conducted, and the findings obtained supported the primary hypothesis of cultural diversity positively affecting perceived organizational innovation. However, the other two hypotheses were not supported by the results.

Our first hypothesis was confirmed as results of the regression analysis showed a medium correlation of 0.43 between cultural diversity and organizational innovation, and a p-value of less than 0.05, suggesting a significant relationship between the two variables. However, an adjusted R-square of 0.17 indicated that cultural diversity is only responsible for 17% of the variation in perceived organizational innovation, suggesting other factors may also be affecting organizational innovation in addition to cultural diversity. This means that even though there is a significantly positive link between cultural diversity and organizational innovation, the size of effect is relatively small, and this is consistent with some prior research studies.

Coming to other two hypotheses of our research study, the results of the regression analysis rejected the notion that intrinsic motivation and affective commitment have an effect on the relationship between cultural diversity and innovation as moderators. The p-values for both intrinsic motivation and affective commitment were more than 0.05, suggesting an insignificant relationship.

Therefore, on the basis of these findings, recommendations have been suggested including promoting cultural diversity in the workplace while keeping in mind its size of impact on organizational innovation, reassessing affective commitment and intrinsic motivation as direct variables instead of moderators, considering other factors as moderating variables such as other forms of commitment and motivation, and sharing of knowledge among culturally diverse teams. Implementation of these recommendations would allow organizations to adopt a comprehensive approach in promoting innovation in the workplace.


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