Effect of Cultural Diversity on the Performance of Multicultural Automobile Companies in Kenya

Abstract

The purpose of this study was to assess the effect of cultural diversity on the performance of multicultural automobile companies in Kenya. The specific focus was on the effect of employee religion, employee value system and employee language on the performance of these firms. The study was guided by the principal agent theory and the ability, motivation and opportunity theory. The study applied a descriptive research design and targeted all the 16 major retailers and major assemblers in the automobile industry in Kenya. Since the population was small, a census was conducted. The study used primary data that was collected using structured questionnaires. In analyzing the data, the study used both descriptive and inferential analysis. Descriptive statistics used included frequencies, percentages, means and standard deviations. The study adopted a simple linear regression model to measure the relationship between the variables of the study. The study findings revealed that employee religion had a positive and significant influence on performance of multicultural automobile companies in Kenya (β=0.510, p=0.040; p<0.05). The study findings further showed that employee value system had positive and significant influence on performance of multicultural automobile companies in Kenya (β=0.613, p=0.023; p<0.05). The results also showed that employee language had a positive and significant influence on the performance of multicultural automobile companies in Kenya (β=0.555, p=0.028; p<0.05). The study concluded that cultural diversity generally influenced the performance of these firms. The study recommends that in order for the companies to be appreciative of the cultural diversity within their firms, cultural weeks or events can be integrated in the companies’ team building activities. The study also recommends that the companies should consider setting aside time and facilities such as prayers rooms and mosques where employees can undertake various religious practices especially for employees that have work shifts that constrain their ability to meet their religious obligations, for instance, Christians working on Sundays. The study also recommends that the companies should adopt communication channels as well as feedback systems that ensure that effective communication within the companies is enhanced. The study also recommends that companies should invest in interpreter programs and training programs that are meant to reduce language barriers between parties within the working environment. The study also recommends that top leadership of the companies should invest in developing the capabilities of the employees through various career development programs such as mentorship, job enrichment and training programs so that employees are able to effectively tackle problems experiencing in undertaking their duties. The study suggests that further research can be conducted to assess the challenges associated with cultural diversity in firms and establish the extent to which firms have embraced cultural diversity in their operations.