Screen Readers Skip to Content

Diversity Can Improve Store Sales Performance

Author: University of Texas at Dallas
Published: 14th Oct 2015
Peer-Reviewed Publication: N/A
Additional References: LGBTQ+ News Publications

Summary: Information-based perspective argues that diversity is positive because it leads to more creativity.


Main Document

Matching levels of racial diversity between store employees and the surrounding community impacts the store unit's sales performance, according to a new study from the Naveen Jindal School of Management at UT Dallas.

The study merges two opposing views on diversity in the workplace, said Dr. Orlando Richard, associate professor of organizations, strategy and international management and lead author of the study. Social identity theory predicts that diversity is negative because people can't identify with one another, while the information-based perspective argues that diversity is positive because it leads to more creativity.

"We tried to find a context in which diversity within the organization would lead to more creativity and problem-solving, but the employees could also identify with the customers," Richard said. "This way, both of the theories are working simultaneously, and you have the highest level of performance."

For the paper, recently published online in the Journal of Management while in-press, the researchers collected demographic and performance data from a large retailer that operates more than 200 store units in small communities throughout the greater Midwest and West. They also used community demographic data from the U.S. Census Bureau.

The study found that having diversity within a store can have positive implications for performance, and if the community is also diverse, that can increase the positive effects even more.

In the study, the superior store performance was evident within store units with high racial diversity among its employees and high racial diversity in the surrounding communities.

Stores with low workforce diversity located in diverse communities had low performance.

"In that case, employees didn't have creativity and problem-solving skills because everyone's the same, and they can't identify with the diverse community either," Richard said. "So you had two negative implications working hand-in-hand."

Richard said hiring managers should take a close look at the communities they serve as a way to have higher identification between employees and the community at large.

"As communities become more diverse, it gives companies a broader pool to select from, but that doesn't mean that a hiring manager is going to hire people who are different," Richard said. "They may have biases and continue to hire the same types of people, whether that be race, gender or age. They have to be proactive and be aware of the environment and also aware of what can be done within the company."

"If companies continue their same hiring practices and do not necessarily diversify their workforce, then it has negative implications for sales performance."

Dr. Marcus M. Stewart of Bentley University, Dr. Patrick F. McKay of Rutgers and Timothy W. Sackett of HRU Technical Resources also are authors on the study. Next, the researchers aim to explore fault lines that split employees into multiple groups - such as age, gender and ethnicity - and how they intersect to influence store-unit performance outcomes.

Post to Twitter Add to Facebook

Latest LGBTQ+ News Publications

The above information is from our reference library of resources relating to LGBTQ+ News that includes:

Increased Adoption of They/Them Pronouns thumbnail image.
Research paper provides the first evidence of how people use they or them when talking about a specific person in a spoken storytelling context.
Publish Date: 19th Apr 2024
This image depicts the cover of Cell's focus issue on sex and gender. thumbnail image
Cell issue on sex and gender in science includes a collection of articles on topics related to strategies for promoting gender equality in academia, enhancing rigor in the study of sex-related variables, and supporting transgender researchers.
Publish Date: 14th Mar 2024
Today's Problematic Use of Pornography thumbnail image.
International study reveals how problematic use of pornography is affecting people in different parts of the world, across various genders and sexual orientations.
Publish Date: 5th Mar 2024
Gender-Affirming Care Bans Carry Significant Penalties for Physicians thumbnail image.
State laws and policies banning gender-affirming care for minors include a range of penalties for physicians that continue to provide care.
Publish Date: 6th Jun 2023


1How Many Genders Are There?
Alphabetical list of gender identities.

2Transgender Reporting Guide
How to write about transgender people.

3Glossary of Sexuality Terms
Definitions of sexual terms & acronyms.

4Glossary of Sexual Identities
Definitions of gender related terms.

5Am I Gay? Questions to Ask
Think you may be gay or bisexual?

• Submissions: Send us your coming events and LGBTQ related news stories.


• Report Errors: Please report outdated or inaccurate information to us.



• (APA): University of Texas at Dallas. (2015, October 14). Diversity Can Improve Store Sales Performance. SexualDiversity.org. Retrieved May 24, 2024 from www.sexualdiversity.org/news/526.php


• Permalink: <a href="https://www.sexualdiversity.org/news/526.php">Diversity Can Improve Store Sales Performance</a>