Influence of Cultural Diversity on Competitive Advantage at SGA Security (K) Limited

Abstract

Cultural diversity and competitive advantage are critical aspects within any organization due to globalization and increased competition. Cultural diversity has received attention in organizations due to the increased shift in patterns of work. Therefore, the study aimed at determining the impact of cultural diversity on competitive advantage at SGA Security(K) Limited. The interest in the study was due to lack of previous research on Private Security Companies and limited literature on relationship between cultural diversity and competitive advantage; creating a gap that this research aimed to fill. The study used two theories that explained the impact of cultural diversity on the organization’s ability to be competitive; Resource Based View Theory and Competitive Advantage Theory by Porter. Being a case study, the data collection approach used was Interview Guide with 5 managers being selected to be respondents. The study also reviewed several literatures which had been advanced to explain how cultural diversity was used as a strategic tool for gaining a competitive edge over competitors and discovered that there were limited studies conducted locally to demonstrate this relationship. Collected data was analyzed through content analysis which sought to establish related themes. The study highlighted the forms of diversity that existed within the organization. Through analysis, the study provided evidence of how cultural diversity positively affected the organization’s competitive advantage which included increased productivity, increased creativity, higher profit levels and low staff turnover rates. Challenges presented required effective management of cultural diversity in order to ensure competitiveness of the organization. The study recommended need to invest in training and streamlining of HR policies to remedy injustices that may occur in the workplace due to cultural blindness. The study also provided suggestions for further research that would enable full understanding of the effects of cultural diversity to the organization.