The Overall Effect of Diversity Management on the Competitiveness of Firms in Ethiopian Industries, With a Focus on Adama City, Oromia Region

The Overall Effect of Diversity Management on the Competitiveness of Firms in Ethiopian Industries, With a Focus on Adama City, Oromia Region | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The Overall Effect of Diversity Management on the Competitiveness of Firms in Ethiopian Industries, With a Focus on Adama City, Oromia Region Awol Aman This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8291089/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study examines the overall effect of diversity management on the competitiveness of firms in Ethiopian industries, with a specific focus on Adama City, Oromia Region. It assesses how Workforce Diversity Indicators, Diversity Management Practices, and the Business Advantage of Managing Diversity influence firms’ competitive performance. A mixed-methods design was employed, combining quantitative data from 262 employees obtained through structured questionnaires with qualitative insights drawn from interviews and focus group discussions. Standard multiple regression analysis was conducted after confirming that all assumptions for regression were satisfied. The results show that diversity management substantially contributes to firm competitiveness, although its impact varies across components. Workforce Diversity Indicators and the Business Advantage of Managing Diversity were significant predictors and jointly explained 65.1% of the variation in firm competitiveness. Business Advantage was the strongest predictor, demonstrating that firms that strategically leverage diversity gain superior competitive outcomes. Diversity Management Practices, however, were not statistically significant, indicating potential gaps in implementation, weak policy enforcement, or limited integration of diversity initiatives into daily operations. Qualitative findings supported the quantitative results, highlighting that inclusive and diverse workplaces enhance innovation, decision quality, adaptability, and employee satisfaction. The study recommends strengthening strategic diversity integration, improving diversity management practices, enhancing inclusion-focused training for employees and managers, and promoting organizational cultures that support diversity. Theoretically, the findings reinforce the Resource-Based View and strategic diversity frameworks by confirming diversity as a valuable intangible resource that improves competitiveness. Further research is suggested on longitudinal designs, sectoral comparisons, and barriers to effective diversity implementation. JEL Code: M1; M10 Diversity Management Workforce Diversity Firm Competitiveness Business Advantage of Diversity Adama City Ethiopian Industries Full Text Additional Declarations No competing interests reported. Supplementary Files SupplementaryMaterialIII.docx SupplementaryMaterialII.docx SupplementaryMaterialIV.docx Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-8291089","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":571591818,"identity":"e788f774-4cb7-492d-a009-2fb0d76ae85f","order_by":0,"name":"Awol Aman","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA1UlEQVRIiWNgGAWjYBAC9gYogw/MMrAgrIXnAJAAYTYwy0CCFC0SCSA+MVrYew8+/lBzWI5N8vnVDT8KJBj427sT8GvhOZdscODYYWM26Zyymz1Ah0mcObsBrxZ7iRwziQNstxPbpHPSbvAAtRhI5OLXwiP/xvzHgX9ALZJn0m7+IUqLBI8Zw8E2oBYJ9mO3ibOFJ8dY4mzff2M2nhy22zIGEjwE/cLDfsbwQ8W3NDl+9uPPbr75YyPH396LXwuybgMwSaxyEGB/QIrqUTAKRsEoGEEAAIw5RWCvwQseAAAAAElFTkSuQmCC","orcid":"","institution":"Jimma University","correspondingAuthor":true,"prefix":"","firstName":"Awol","middleName":"","lastName":"Aman","suffix":""}],"badges":[],"createdAt":"2025-12-05 23:38:11","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-8291089/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-8291089/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":99895890,"identity":"c257cfd8-d87c-4b32-92af-cd35021294e8","added_by":"auto","created_at":"2026-01-09 14:49:46","extension":"docx","order_by":0,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":147033,"visible":true,"origin":"","legend":"","description":"","filename":"ArticletoSNBusinessEconomicsEffect.docx","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/b1af89c893f4a291becfae80.docx"},{"id":100358614,"identity":"d11ae7b9-f9b4-4ce0-a2c6-7603566386cf","added_by":"auto","created_at":"2026-01-16 07:21:12","extension":"json","order_by":1,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":3982,"visible":true,"origin":"","legend":"","description":"","filename":"8f0d0a5fd28240d9adf764c90caf7ae7.json","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/62221e2fdeb2adb047d462ac.json"},{"id":100358343,"identity":"66bfe5c0-fef0-4e10-871a-15b3a66c4bd4","added_by":"auto","created_at":"2026-01-16 07:20:56","extension":"docx","order_by":2,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":364589,"visible":true,"origin":"","legend":"","description":"","filename":"SupplementaryMaterialII.docx","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/0a7157fa269f41367d3fceec.docx"},{"id":100358923,"identity":"5d5b1aec-e37a-403d-a4f1-5eff212a6073","added_by":"auto","created_at":"2026-01-16 07:21:34","extension":"docx","order_by":3,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":25811,"visible":true,"origin":"","legend":"","description":"","filename":"SupplementaryMaterialIII.docx","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/f5da346f2de83e2fba82e18a.docx"},{"id":100359122,"identity":"0fb7ca8b-094b-4313-b8cb-4d35445d219c","added_by":"auto","created_at":"2026-01-16 07:21:43","extension":"docx","order_by":4,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":29353,"visible":true,"origin":"","legend":"","description":"","filename":"SupplementaryMaterialIV.docx","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/1eba98013772b3b1db0fb01c.docx"},{"id":99895899,"identity":"0597c3c8-fa6c-4b60-888f-fd9f7e04d66a","added_by":"auto","created_at":"2026-01-09 14:49:46","extension":"xml","order_by":5,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":162245,"visible":true,"origin":"","legend":"","description":"","filename":"8f0d0a5fd28240d9adf764c90caf7ae71enriched.xml","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/c3288c6cc0b8c9468642b743.xml"},{"id":99895902,"identity":"6d514f2b-7179-4380-9c1a-0de90c760936","added_by":"auto","created_at":"2026-01-09 14:49:46","extension":"jpeg","order_by":6,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":427016,"visible":true,"origin":"","legend":"","description":"","filename":"floatimage1.jpeg","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/4dba52fa14fdae964aec4160.jpeg"},{"id":100358393,"identity":"e78a22dd-8d90-4dd3-b652-381905901703","added_by":"auto","created_at":"2026-01-16 07:21:00","extension":"jpeg","order_by":7,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":10735,"visible":true,"origin":"","legend":"","description":"","filename":"floatimage2.jpeg","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/8756c79bfc150f4aff952578.jpeg"},{"id":99895895,"identity":"387adc04-3734-472a-b6b4-878d301e30ba","added_by":"auto","created_at":"2026-01-09 14:49:46","extension":"png","order_by":8,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":17360,"visible":true,"origin":"","legend":"","description":"","filename":"floatimage3.png","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/0f87f3a13650d8558ba37e75.png"},{"id":100359192,"identity":"1103650e-d6ac-4c37-a428-52773727330b","added_by":"auto","created_at":"2026-01-16 07:21:48","extension":"png","order_by":9,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":69916,"visible":true,"origin":"","legend":"","description":"","filename":"Onlinefloatimage1.png","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/4e96708ab41a65847381bab2.png"},{"id":99895906,"identity":"0e7b7dcd-46fa-4801-8615-c628f7694350","added_by":"auto","created_at":"2026-01-09 14:49:46","extension":"png","order_by":10,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":1825,"visible":true,"origin":"","legend":"","description":"","filename":"Onlinefloatimage2.png","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/5478cd78db4545fa33734893.png"},{"id":99895901,"identity":"14a35080-1eb2-4de1-83fd-6336c57478ee","added_by":"auto","created_at":"2026-01-09 14:49:46","extension":"png","order_by":11,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":8175,"visible":true,"origin":"","legend":"","description":"","filename":"Onlinefloatimage3.png","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/ea0b24ab5905cc2260086f60.png"},{"id":99895903,"identity":"01197eba-8934-4a90-8f99-5b49b0346c4e","added_by":"auto","created_at":"2026-01-09 14:49:46","extension":"xml","order_by":12,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":161602,"visible":true,"origin":"","legend":"","description":"","filename":"8f0d0a5fd28240d9adf764c90caf7ae71structuring.xml","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/3bd69da9a9723984867d865a.xml"},{"id":99895905,"identity":"1fc7170d-6fce-45b3-962a-a099ba6d1f7e","added_by":"auto","created_at":"2026-01-09 14:49:46","extension":"html","order_by":13,"title":"","display":"","copyAsset":false,"role":"acdc-reference","size":170507,"visible":true,"origin":"","legend":"","description":"","filename":"earlyproof.html","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/200b333e07011604ff859956.html"},{"id":102409608,"identity":"bdb4247a-3889-4ea0-a034-6fb1dcb2f24a","added_by":"auto","created_at":"2026-02-11 11:42:56","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":573986,"visible":true,"origin":"","legend":"","description":"","filename":"ArticletoSNBusinessEconomicsEffect.pdf","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1_covered_ef0de377-3dd1-41d4-9cf1-7eeff5e1aa48.pdf"},{"id":99895889,"identity":"d18b8f2b-2984-4793-9c1f-d14f5c48a4d0","added_by":"auto","created_at":"2026-01-09 14:49:46","extension":"docx","order_by":0,"title":"","display":"","copyAsset":false,"role":"supplement","size":25811,"visible":true,"origin":"","legend":"","description":"","filename":"SupplementaryMaterialIII.docx","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/a4b30b0fbd862760112486ff.docx"},{"id":100359097,"identity":"c8def803-2063-4389-ab8e-559912b2c965","added_by":"auto","created_at":"2026-01-16 07:21:42","extension":"docx","order_by":1,"title":"","display":"","copyAsset":false,"role":"supplement","size":364589,"visible":true,"origin":"","legend":"","description":"","filename":"SupplementaryMaterialII.docx","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/2029c64651256387bf654e89.docx"},{"id":100359405,"identity":"4e6054b0-1737-425c-990c-27747512f180","added_by":"auto","created_at":"2026-01-16 07:22:13","extension":"docx","order_by":2,"title":"","display":"","copyAsset":false,"role":"supplement","size":29353,"visible":true,"origin":"","legend":"","description":"","filename":"SupplementaryMaterialIV.docx","url":"https://assets-eu.researchsquare.com/files/rs-8291089/v1/a72930b65faab78bfec18653.docx"}],"financialInterests":"No competing interests reported.","formattedTitle":"\u003cp\u003eThe Overall Effect of Diversity Management on the Competitiveness of Firms in Ethiopian Industries, With a Focus on Adama City, Oromia Region\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Diversity Management, Workforce Diversity, Firm Competitiveness, Business Advantage of Diversity, Adama City, Ethiopian Industries","lastPublishedDoi":"10.21203/rs.3.rs-8291089/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-8291089/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study examines the overall effect of diversity management on the competitiveness of firms in Ethiopian industries, with a specific focus on Adama City, Oromia Region. It assesses how Workforce Diversity Indicators, Diversity Management Practices, and the Business Advantage of Managing Diversity influence firms’ competitive performance. A mixed-methods design was employed, combining quantitative data from 262 employees obtained through structured questionnaires with qualitative insights drawn from interviews and focus group discussions. Standard multiple regression analysis was conducted after confirming that all assumptions for regression were satisfied. The results show that diversity management substantially contributes to firm competitiveness, although its impact varies across components. Workforce Diversity Indicators and the Business Advantage of Managing Diversity were significant predictors and jointly explained 65.1% of the variation in firm competitiveness. Business Advantage was the strongest predictor, demonstrating that firms that strategically leverage diversity gain superior competitive outcomes. Diversity Management Practices, however, were not statistically significant, indicating potential gaps in implementation, weak policy enforcement, or limited integration of diversity initiatives into daily operations. Qualitative findings supported the quantitative results, highlighting that inclusive and diverse workplaces enhance innovation, decision quality, adaptability, and employee satisfaction. The study recommends strengthening strategic diversity integration, improving diversity management practices, enhancing inclusion-focused training for employees and managers, and promoting organizational cultures that support diversity. Theoretically, the findings reinforce the Resource-Based View and strategic diversity frameworks by confirming diversity as a valuable intangible resource that improves competitiveness. Further research is suggested on longitudinal designs, sectoral comparisons, and barriers to effective diversity implementation.\u003c/p\u003e\n\u003cp\u003e\u003cem\u003e\u003cstrong\u003eJEL Code: M1; M10\u003c/strong\u003e\u003c/em\u003e\u003c/p\u003e","manuscriptTitle":"The Overall Effect of Diversity Management on the Competitiveness of Firms in Ethiopian Industries, With a Focus on Adama City, Oromia Region","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2026-01-09 14:49:38","doi":"10.21203/rs.3.rs-8291089/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"bd8cd042-e74b-420e-9e69-0080f3af65a9","owner":[],"postedDate":"January 9th, 2026","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2026-02-11T11:42:04+00:00","versionOfRecord":[],"versionCreatedAt":"2026-01-09 14:49:38","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-8291089","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-8291089","identity":"rs-8291089","version":["v1"]},"buildId":"XKTyCvWXoU3ODBz1xrDgd","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}