Diversity, social capital and s ustained competitive advantage: A resource-based perspective

Abstract

This paper explores the impact of diversity as a source of sustained competitive advantage. The basic premise is that social networks serve as a medium for collaboration in organizations, allowing diverse members to exchange personal information and build trust, which leads to greater productivity. We propose, therefore, that social capital is a partial mediator between diversity and firm performance. Further, HR practices moderate the relationship between diversity - firm performance and diversity - social capital.