Managing Cultural Diversity for Innovation: the Experience of Italian International Corporations

Purpose - With increased globalization trends, more companies operate internationally and are compelled to appreciate the importance as well as complexity of cultural diversity (CD), and consequently take up the challenge of managing it appropriately. Studies on multicultural management in organizations recognize the relevance of CD and the positive relationship between diversity and corporate performance. However, only a paucity of literature addresses the issue of CD and its value for innovative firms. We strongly believe that CD is a key driver for innovation. Based on this assumption, our paper aims to highlight the relationship between CD and innovation, and pinpointing the role of how knowledge is managed towards the enhancement of innovation. The paper also aims to identify some effective policies for managing CD in the service of promoting innovative behavior. Methodology - This study is based on an inductive approach according to which, proposing specific company experiences, one may try to draw more general considerations. The paper initially comprehensively reviews the existing literature on management of CD within organizations. Thereafter, an analysis of the experiences of three innovative and competitive companies that operate internationally has been conducted. To collect data we consulted secondary sources and the websites of each company. The data collection will provide target information on the approach and the policies adopted by companies to deal with success CD in terms of innovation. Integrating the literature analysis with the data collection, we propose a conceptual framework to explain the links between CD and knowledge management (KM), and the ways in which they impact upon innovativeness. Originality - This paper highlights the value of CD for innovative firms and how it can promote the ability of companies to expand their knowledge horizons in order to promote and support innovativeness.Practical implications - The proposal of a conceptual framework that links CD, KM and innovation, and the analysis of some business experiences that can be a benchmark in the field, can yield important insights for management. Enhancing management awareness and appreciation of corporate orientation to CD, may have significant implications in terms of innovation and human resources.