Diversity Management and Competitive Advantage In Multinational Firms In Sub-Saharan Africa

Abstract

In the midst of the disappointing economic performance of most sub-Saharan states, a significant number of multinational organizations have found the region a great economic space to do business. As global enterprises, the issue of diversity management and its effect on competitive advantage remains a thorny issue needing empirical validation. We harnessed the views of human resource managers in selected multinational organizations in Ghana and modeled their responses using a collection of statistical analytical models. We observed that far from being a challenge, effective diversity management can create uncontested competitive space by increasing innovation, enhancing brand equity, customer loyalty, lowering buyer propensity to substitute, increasing supplier and employee solidarity. These factors directly, singly or wholly influence competitive rivalry, bargaining power of buyers, bargaining power of customers, threat of substitutes and threat of new entrants