A Dynamic Multilevel Model of Demographic Diversity and Misfit Effects.

Abstract

In this study, the authors proposed and evaluated the linkages of a dynamic multilevel model of demographic diversity and misfit effects in a large sample of quick-service restaurants. Using a cross-level approach, the authors studied an employee's demographic misfit in relation to coworkers' demographics as a predictor of turnover risk over time. At the business-unit level, they studied changes in restaurant demographic diversity in relation to changes in profitability over time and unit turnover rates in relation to profitability. The authors also studied the impact of the match between the racial compositions of the restaurants and their communities on profitability. The results supported linkages between demographic misfit and turnover and partially supported a negative association between racial diversity and changes in profitability.