Exploring the nexus between perceived organizational diversity and cooperative performance: the mediating role of employee engagement

Purpose Organizational workforce diversity is a double-edged sword, providing both substantial opportunities and prospective obstacles. Hence, the aim of this study is to evaluate the impact of perceived organizational diversity on cooperative performance, with a focus on the mediating role of employee engagement. Design/methodology/approach A structured questionnaire was utilized to collect data from 222 employees of multistate cooperative societies, and partial least squares structural equation modeling was used to analyze the interconnections between these variables. Findings The results show that perceived organizational diversity exerts a positive influence on cooperative performance, and this relationship is partially mediated by employee engagement. The findings suggest that implementing targeted diversity, equity and inclusion (DEI) strategies can foster positive employee perceptions toward diversity, ultimately enhancing the performance of multistate cooperative societies. Practical implications The study offers actionable insights for top management, suggesting investments in diversity initiatives, human resource practices and clear communication of DEI objectives to foster positive attitudes among employees. The study also suggests adopting formal DEI statements and establishing dedicated committees for DEI initiatives. Originality/value This study pioneers the investigation of the relationship between perceived organizational diversity, employee engagement and performance within the context of multistate cooperative societies in India, and provides new insights into an unexplored domain.