The Moderating Effect of Diversity Strategy on the Relationship Between Racial Diversity and Organizational Performance

Abstract

The purpose of this study was to examine the degree to which a proactive diversity‐management strategy moderated the relationship between racial diversity and organizational performance. Data were gathered from 75 NCAA athletic departments. Hierarchal regression analysis indicated that, after controlling for the department expenditures and department size, racial diversity was positively associated with objective measures of overall performance. These effects were qualified by the moderating effects of a proactive diversity‐management strategy, as departments that were racially diverse and followed a proactive diversity‐management strategy had the greatest performance. The total model explained 68% of the variance in the department's performance. Results are discussed in terms of contributions and implications.