Addressing workplace diversity to improve employee performance: implications for SOEs in Namibia

Abstract

This study examines the effects of workplace diversity dimensions on employee performance in selected State-Owned Enterprises (SOEs) in Namibia. The research aims to provide insights into the influence of specific workplace diversity dimensions such as age, educational background, ethnicity, gender, and religion on employee performance in the context of SOEs in Namibia. A quantitative approach was adopted following a cross-sectional survey research design for data collection. Data was collected from 350 employees across various levels in the participating SOEs using a structured questionnaire. The data was analyzed using structural equation modelling with the aid of SmartPLS 4 for path analysis showcasing the effects of specific workplace diversity dimensions on employee performance in the participating SOEs. The findings indicate that age diversity and educational background diversity significantly influence employee performance in the participating SOEs. However, workplace dimensions such as gender, ethnicity, and religion exhibit no significant effect on employee performance. The study highlights the importance of generational diversity and recognizing the value of educational qualifications in enhancing employee performance in SOEs. It also emphasizes the need to discourage discriminatory practices based on gender, ethnicity, and religion in SOEs. The findings suggest the importance of implementing inclusive HR policies and practices that attract and retain a diverse talent pool, while promoting intercultural sensitivity and effective communication among employees in SOEs.

Keywords:

• Workplace diversity
• age diversity
• educational diversity
• ethnicity diversity
• gender diversity
• religion diversity
• employee performance

REVIEWING EDITOR:

• Huifen (Helen) Cai, Middlesex University Business School, United Kingdom

SUBJECTS:

• Personnel Selection, Assessment, and Human Resource Management
• Business, Management and Accounting

1. Introduction

In the modern globalized and interconnected world, organizations have come to recognize the crucial role of workplace diversity in driving improved employee performance and organizational success. Extensive academic research and industry literature have highlighted the manifold benefits that diverse workforces bring, including heightened creativity, enhanced decision-making, and superior problem-solving capabilities (Ahmad et al., 2019; Andoh et al., 2019; Guillaume et al., 2017; Wadhwa, 2022). Nevertheless, within the context of Namibian State-Owned Enterprises (SOEs), the matter of workplace diversity remains a significant obstacle that hampers the attainment of optimal employee performance and overall organizational effectiveness. Building on this premise, this study contributes theoretically by offering nuanced insights into the effect of specific workplace diversity dimensions on employee performance within Namibian SOEs. By highlighting the distinct effects of age diversity and educational background diversity, this research challenges prevailing assumptions and underscores the need for context-specific considerations in applying social categorization and social identity theories. The revelation that workplace diversity dimensions such as gender, ethnicity, and religion exhibit no direct significant effects on employee performance adds a novel dimension to the discourse, emphasizing the contextual variability of these relationships and encouraging further exploration into the moderating factors at play.

The variables under investigation include age, gender, ethnicity, religion, and educational background. Age diversity refers to the range of age groups within the workforce (Odhiambo et al., 2018), while educational background diversity encompasses variations in employees’ academic qualifications and competencies (Mugwe & Moses, 2020). Gender diversity involves the representation of both male and female employees, ethnicity diversity considers the inclusion of individuals from different ethnic backgrounds (Ahmad et al., 2019), and religion diversity pertains to the coexistence of employees with various religious affiliations (Singh & Babbar, 2020). Understanding these variables is essential for comprehending the intricacies of workplace diversity within Namibian SOEs and their specific implications for employee performance. Diversity in the workplace can bring in different perspectives and ideas, leading to better decision-making and enhanced performance if managed effectively. However, if diversity is not managed well, it can lead to conflicts and negatively impact employee performance (Akintayo et al., 2020). This article aims to shed light on the urgent necessity of addressing workplace diversity issues specifically within SOEs in Namibia.

The workforce within Namibian SOEs continues to display a lack of diversity management, with certain demographic groups being underrepresented (Karwal & Tandon, 2021). This underrepresentation is detrimental to the creation of an inclusive work environment, impacting employee morale, satisfaction, and engagement (Wang, 2022). Furthermore, the limited representation of diverse perspectives and experiences limits the ability of SOEs to adapt to the evolving market dynamics and respond effectively to complex challenges. Consequently, organizations with low diversity levels may face difficulties in attracting and retaining talent, leading to higher turnover rates and reduced opportunities for career development and advancement (Hays-Thomas, 2017).

The problem addressed in this study is the existing workplace diversity issues in SOEs in Namibia and their effects on employee performance (Andoh et al., 2019; Pal & Jain, 2021). Workplace diversity encompasses various dimensions, such as age, gender, ethnicity, religion, and educational background, among others (Ahmad et al., 2019; Patrick & Kumar, 2012; Wafula et al., 2018). Achieving and maintaining a diverse workforce has become a critical concern for organizations globally due to its potential benefits, including enhanced creativity, innovation, and overall business performance (Bashir et al., 2021).

However, workplace diversity issues persist in many organizations, affecting employee performance and organizational effectiveness (Tamunomiebi & John-Eke, 2020). Addressing workplace diversity issues in SOEs in Namibia holds significant implications for improving employee performance. The effective management of workplace diversity within these enterprises can lead to positive outcomes such as enhanced decision-making, increased creativity, which demonstrates that diversity is an unavoidable aspect of the workplace, and it plays a vital role in promoting creativity and fostering enthusiasm among employees (Sundari, 2018), and therefore improved overall performance. Conversely, inadequate management of diversity issues in organizations can result in negative consequences, including decreased employee performance, lowered morale, communication challenges, and heightened conflicts (Zhuwao, 2017; Zhuwao et al., 2019). Understanding and addressing these diversity issues are crucial for optimizing employee performance and unlocking the full potential of SOEs in Namibia. Therefore, this study examines the effects of workplace diversity dimensions on employee performance in the participating SOEs in Namibia.

2. Literature review

2.1. Background theory

The theories underpinning workplace diversity dimensions are Social Categorization Theory (Turner et al., 1979) and Social Identity Theory (Tajfel & Turner, 1979). The Social Categorization Theory holds that individuals categorize themselves and others into different social groups, and these categories influence their attitudes and behaviours (Turner et al., 1979). The diversity management perspective emphasizes the strategic management of diversity to enhance organizational performance. It suggests that when diversity is effectively managed, it can lead to a range of positive outcomes, such as increased innovation, creativity, problem-solving capabilities, and better decision-making (Cox & Blake, 1991; Esty et al., 1995). The social integration perspective highlights the importance of creating an inclusive work environment that fosters positive interactions, cooperation, and mutual respect among diverse employees. This perspective suggests that when employees feel included and valued, they are more likely to engage in effective collaboration and contribute to enhanced organizational performance (Akintayo et al., 2020).

The Social Identity Theory provides a theoretical framework for understanding the influence of social categorization and group identification on employee performance in the context of workplace diversity. This theory emphasizes the importance of individuals’ identification with specific social groups based on shared characteristics, such as age, gender, ethnicity, religion, and educational background. According to social identity theory, when employees identify with their respective groups, they develop a sense of belonging and derive positive self-esteem from their group membership. This, in turn, influences their attitudes, behaviours, and performance within the organization. Research drawing on social identity theory have examined the effects of group identification based on diversity dimensions, revealing its impact on employee motivation, commitment, job satisfaction, and performance outcomes (Sahabuddin et al., 2023; Tajeddini et al., 2023). By incorporating social identity theory into the study of workplace diversity, this research aims to uncover the underlying mechanisms through which group identification influences employee performance, contributing to a comprehensive understanding of the dynamics between diversity dimensions and organizational outcomes.

In examining the relationship between workplace diversity dimensions (age, gender, ethnicity, religion, and educational background) and employee performance, this study is grounded in the theoretical frameworks of social categorization theory and social identity theory. Social categorization theory, proposed by Tajfel and Turner (1979), explains how individuals mentally categorize others based on their diverse characteristics, leading to the formation of social groups within the workplace. This theory emphasizes the initial perception and categorization processes that individuals undergo when encountering diversity dimensions. Additionally, social identity theory, developed by Tajfel and Turner (1979), extends the understanding of workplace diversity by exploring the psychological processes and consequences of group identification. This theory underscores the significance of individuals’ identification with specific groups based on shared characteristics, such as age, gender, ethnicity, religion, and educational background, and how it influences their attitudes, behaviours, and performance within the organizational context.

2.2. Workplace diversity dimensions

Workplace diversity can be broadly defined as recognizing, understanding, accepting, valuing, and celebrating differences among individuals in terms of age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and socioeconomic status (Esty et al., 1995). Embracing diversity in the workplace benefits both employees and employers, as fostering respect for individual differences enhance productivity and can impact on marketing, recruitment, innovation, and company reputation while mitigating the risk of legal issues (Esty et al., 1995). Diversity encompasses the diverse and multifaceted characteristics found in both animate and inanimate realms, encompassing visible and invisible traits (Akinnusi et al., 2017). It involves a range of conscious behaviours that necessitate a comprehensive understanding and appreciation of individuals, cultures, and the environment, along with a commitment to valuing differences in traits and experiences. The primary objectives of diversity studies are to raise awareness about the detrimental impacts of discrimination and foster collaborations that enable individuals with various characteristics to work together effectively (Patrick & Kumar, 2012). It encompasses distinctions in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic backgrounds, as well as skills and limitations (Sundari, 2018).

2.2.1. Age diversity

Age diversity has been a significant area of research, and numerous studies have examined its impact on employee performance. For instance, Odhiambo et al. (2018) investigated the relationship between age diversity and employee performance in public universities in Western Kenya. Their findings revealed that age diversity positively influenced employee performance, as it brought together a range of experiences, perspectives, and skills. Similarly, Mekasha (2020) conducted a study on Save the Children Ethiopia and found that age diversity had a positive effect on employee performance. These studies collectively suggest that age diversity can enhance problem-solving, decision-making, and knowledge sharing within organizations, thereby contributing to improved employee performance.

2.2.2. Gender diversity

The impact of gender diversity on employee performance has been widely explored in the literature. (Zhuwao et al., 2019) investigated the relationship between gender diversity and employee performance in a South African higher education institution. Their study revealed a positive association between gender diversity and employee performance, highlighting the diverse perspectives, skills, and insights that gender-diverse teams bring to the workplace. This finding is consistent with the research conducted by Mohammad (2019) in Jordan’s hotel industry, which also showed a positive effect of gender diversity on job performance. The findings suggest that promoting gender diversity can foster innovation and improve organizational outcomes by leveraging the unique strengths and talents of both men and women in the workforce.

2.2.3. Ethnicity diversity

Ethnic diversity has been recognized as an important dimension of workforce diversity with implications for employee performance. Muange and Kiptoo (2020) examined selected universities in Kenya and found a positive relationship between ethnic diversity and employee performance. This finding aligns with the research conducted by Kebede (2017) in the UNESCO Addis Ababa liaison office, where diversity was found to positively influence employee performance. The positive impact of ethnic diversity on employee performance can be attributed to the varied cultural perspectives, experiences, and knowledge that diverse individuals bring to the workplace. By embracing ethnic diversity, organizations can tap into a rich pool of ideas and approaches, leading to enhanced teamwork, creativity, and problem-solving abilities.

2.2.4. Religion diversity

The influence of religious diversity on employee performance has received relatively less attention in the literature. However, (Ali et al., 2021) examined the role of religious diversity on employee performance and found a positive association between the two. The study suggested that embracing religious diversity can contribute to a more inclusive and harmonious work environment, fostering employee satisfaction and engagement, and ultimately enhancing organizational performance. Despite the limited research available, the findings indicate the importance of recognizing and valuing religious diversity as a key aspect of workforce diversity. Singh and Babbar (2020) highlights the significance of studying diversity in organizations due to the forces of globalization, increased migration, and workforce mobility. While various dimensions of diversity have been extensively explored in the literature, the aspect of religious diversity has received less attention (Singh & Babbar, 2020). The authors aimed to address this gap by defining and differentiating religions based on beliefs, practices, and culture. The study identified both the positive and negative outcomes associated with religious diversity in the workplace. Interestingly, the findings indicated a predominance of studies that favour religious diversity, suggesting a shift from eliminating religious diversity to managing and valuing it in the workplace (Herbert et al., 2023). This suggests that organizations should adopt strategies to effectively manage religious diversity and create an inclusive environment.

2.2.5. Educational background diversity

Educational diversity has been recognized as an asset in organizations, contributing to employee performance. Mugwe and Moses (2020) focused on information technology firms in Nairobi County and found that educational diversity was associated with enhanced organizational performance. The study highlighted the diverse knowledge, skills, and perspectives that employees with different educational backgrounds bring to the workplace. These findings were supported by Muange and Kiptoo (2020) study, which revealed that educational diversity positively influenced employee performance in selected universities in Kenya. By leveraging educational diversity, organizations can tap into a wider range of expertise and foster a culture of continuous learning, leading to improved employee performance. The review on workplace diversity emphasizes the importance of age diversity, gender diversity, ethnic diversity, religious diversity, and educational diversity in influencing employee performance. These studies collectively highlighted the positive impact of embracing and managing diverse work environments. By recognizing and leveraging the unique perspectives, skills, and experiences of a diverse workforce, organizations can promote creativity, innovation, and better decision-making processes, ultimately leading to improved employee performance and organizational success.

2.3. Employee performance

Employee performance refers to the actions and accomplishments of employees as they carry out their assigned duties in alignment with organizational policies, standards, and expectations It is influenced by factors such as ability, effort, and task perception, which contribute to the efficiency and effectiveness of tasks, ultimately enhancing organizational productivity and yielding high-quality outcomes (Hee et al., 2019). Several studies (Rus & Băban, 2019; Zhuwao et al., 2019) have explored the relationship between workplace diversity and employee performance, highlighting their significant impact on employee performance.

2.4. Workplace diversity and employee performance

The effects of workplace diversity on employee performance have been a subject of extensive research, and the findings consistently highlight the positive impact of diversity on organizational outcomes. Numerous studies across various industries, regions, and organizational contexts have provided valuable insights into the relationship between workforce diversity and employee performance.

Few studies have found a positive association between workforce diversity and employee performance (Andoh et al., 2019; Faloye et al., 2019; Karwal & Tandon, 2021; Kebede, 2017; Pal & Jain, 2021; Zhuwao, 2017). These studies indicate that diversity contributes to improved employee performance by promoting creativity, innovation, and better decision-making processes. When individuals from diverse backgrounds come together, they bring unique perspectives, skills, and experiences, which enhance problem-solving abilities and lead to increased organizational effectiveness. However, it is important to note that the relationship between workforce diversity and employee performance is not without complexities. Hence, the impact of diversity on employee performance may be contingent upon various contextual factors (Li et al., 2021). Therefore, this study examines the effects of workplace diversity dimensions on employee performance in the context of Namibia’s SOEs.

The field of information technology is known for its workforce diversity and understanding the effects of diversity on employee performance is crucial. Mugwe and Moses (2020) focusedd on Information Technology firms in Nairobi County and investigated the impact of workforce diversity on performance within this specific industry. The findings of this study provided valuable insights into how diversity influences performance outcomes and contributes to the overall success of information technology firms in Kenya. In a study on selected universities in Kenya, Muange and Kiptoo (2020) examine the effect of workforce ethnic diversity and education background diversity on employee performance. The results indicated that both diversity dimensions had a positive effect on employee performance. These findings align with previous studies that demonstrated a positive relationship between workforce diversity and employee performance. Similarly, Mohammad (2019) conducted a study in Jordan’s hospitality industry and found a positive relationship between workforce diversity and job performance. Moreover, the effects of workforce diversity on employee performance have been examined in various sectors and economies. For example, Pal and Jain (2021) conducted a study in Sugar Mill, Meerut, while Mohammad (2019) explored the relationship between diversity and performance in hotels in Jordan. These studies delve into the specific contexts of these sectors and contribute to our understanding of how diversity impacts performance in difference sectors of the economy.

Simuyambala (2015) explored the effects of diversity on employee performance in a higher education institution in Botswana. The study revealed a positive and significant relationship between diversity (ethnic, gender, age) and employee performance. The findings suggested that promoting diversity management policies, cultural days, diversity training workshops, and having a diverse workforce could enhance employee performance. Diversity in the workforce has become a critical area of study, particularly in the context of its impact on organizational performance. In a study conducted in Bangladesh’s banking sector, the researcher examined the relationship between workforce diversity (in terms of age, gender, and ethnicity) and organizational performance (Roy et al., 2022). Utilizing statistical instruments, the study found that age, gender, and ethnic diversity had a statistically significant positive impact on organizational performance. Notably, age diversity emerged as the most influential factor, while gender diversity demonstrated a comparatively lesser effect. However, it is important to acknowledge that the study did not consider other diversity factors, such as religion and nationality, which may also contribute to organizational performance. Nonetheless, the findings highlight the dynamic relationship between workforce diversity and organizational performance in the banking industry, emphasizing the significance of effective diversity management practices for improved organizational outcomes (Roy et al., 2022).

Lastly, the study conducted at the African Banking Corporation (ABC Bank) Head Office in Kenya investigates the influence of workforce diversity (education, gender, ethical, socio-cultural diversities) on employee performance (Bor, 2018). The results reveal a significant positive relationship between workforce diversity and employee performance, with gender diversity and cultural diversity identified as significant predictors. Overall, these studies collectively contribute to our understanding of the effects of workforce diversity on employee performance in different sectors and highlight the importance of promoting diversity management practices to enhance performance outcomes.

2.5. Research model and hypotheses development

This study examines the effects of workplace diversity dimensions on employee performance in SOEs. Specifically, it investigates the effects of age diversity, educational diversity, ethnicity diversity, gender diversity, and religion diversity on employee performance within the context of SOEs in Namibia. The findings of this study will contribute to the literature on the relationship between workplace diversity dimensions and employee performance, providing insights for organizations to enhance their diversity management strategies. The conceptual framework guiding this study is based on the premise that workplace diversity dimensions influence employee performance in SOEs. According to Cletus et al. (2018) and Duchek et al. (2020), a diverse workforce consisting of individuals with varied demographic backgrounds and characteristics can enhance organizational performance. Building upon this perspective, the research model illustrated in Figure 1, showcases the hypothesized relationships between workplace diversity dimensions (age, educational background, ethnicity, gender, and religion diversity) and employee performance in SOEs.

Figure 1. Conceptual framework.

Based on the research model illustrated in Figure 1, the following research hypotheses are formulated for empirical analysis using variance-based structural equation modeling.

H1: Age diversity exerts a significant effect on employee performance in SOEs.

H2: Educational diversity has a significant effect on employee performance in SOEs.

H3: Ethnicity diversity has a significant effect on employee performance in SOEs.

H4: Gender diversity exerts a significant effect on employee performance in SOEs.

H5. Religion diversity has a significant effect on employee performance in SOEs.

3. Methods

This study adopted a quantitative method using a cross-sectional survey to examine the effects of workplace diversity dimensions on employee performance in selected SOEs in Namibia. In this study, an explanatory research design was employed to explain the effects of workplace diversity dimensions on employee performance in SOEs. To achieve the research objectives, a structured questionnaire (Creswell & Hirose, 2019) was used to collect pertinent data from respondents regarding the influence of workplace diversity dimensions on employee performance in the participating SOEs.

3.1. Research procedure and participants

The population of this study were various categories of employees in SOEs in Namibia. The estimated population of this study compromised of 850 employees across the participating SOEs in Namibia. According to Krejcie and Morgan (1970) table of minimum sample size determination, the minimum sample size from a population of 850 is 265. A stratified convenience sampling technique was used, since the SOEs were categorized into different sectors, namely service rendering, financial, and regulatory sectors. Within each sector, a simple random sampling technique was utilized to select a representative sample of SOEs. Subsequently, within each selected SOE, participants were chosen using convenience sampling, taking into consideration their availability and willingness to participate in the study. Special attention was given to ensuring the inclusion of a diverse range of participants in terms of age, gender, ethnicity, religion, and educational background to achieve a sample that is representative of the population of interest. The sample for this study consisted of 350 respondents who were selected from the participating SOEs in Namibia. This sample size was considered suitable for the purpose of generalizability, allowing for broader inferences to be drawn from the study findings.

The demographic profile of respondents indicates that there were 142 (40.6%) males, 198 females (56.5%), while the remaining 10 (3%) were LGBTQ+. In terms of age distribution among respondents, 46 (13.1%) belong to the age group of 20–29 years, 130 (37.1%) were between 30 and 39 years, 135 (38.6%) were within the age group of 40–49 years, and 39 (11.1%) were 50–59 years old. Statistically, majority (75.7%) of the respondents belong to the age group of 30–49 years. The educational qualification of respondents showed that 23 (6.6%) of the respondents had high school certificates, 189 (54%) were in possession of bachelors and honours degrees, 25 (7.1%) were in possession of certificates, 65 (18.6%) were in possession of master’s degree, and the remaining 48 (13.7%) had ordinary diploma. 12 (3.4%) of the respondents were executive management staff, 95 (27.1%) were middle managers, 21 (6%) were senior managers and the remaining 222 (63.4%) of the respondents were general staff in the participating SOEs. In terms of the work experience of participants, 95 (27.1%) of the respondents had 1–5 years of experience, 124 (35.4%) had 6–10 years of experience, 82 (23.4%) had 11–15 years of experience, and the remaining 49 (14%) of the respondents had over 16 years of work experience.

3.2. Research instruments

A cross-sectional survey was employed using a structured questionnaire to gather the required information on the influence of workplace diversity dimensions on employee performance in the participating SOEs in Namibia. The first section of the structured questionnaire contains seven items, while the second section of the questionnaire contained forty items, of which thirty items were instrumental in gathering workplace diversity information from the respondents. The 30-item was adapted from Workplace Diversity Questionnaire (WDQ) developed by Elsaid (2012). The 30-item questionnaire consist of five sub-scales of diversity which are age, gender, ethnicity, religion, and educational background. The remaining 10-item was adapted from Work Performance Questionnaire (EWPQ) developed by Bekele et al., (2019). The second section of the questionnaire utilized a Likert-type rating scale with a 5-point (‘1–strongly disagree’ to ‘5–strongly agree’) to measure workplace diversity dimensions and employee performance in the participating SOEs in Namibia.

3.3. Ethical considerations

The ethical considerations in social science research were adhered to in this study. Measures were taken to ensure the confidentiality and anonymity of both the respondents and the participating State-Owned Enterprises (SOEs). Prior to the administration of questionnaires, an ethical clearance certificate was obtained from the National Commission on Research, Science and Technology (NCRST) through the International University of Management (IUM). The cover page of the research instrument included a section where respondents provided their informed written consent.

3.4. Data analysis

Descriptive and inferential statistics were employed to analyse the quantitative data collected from the respondents. The data collected for this study was downloaded and saved in a CSV (comma-delimited) file format for initial data analysis. The CSV file was imported into SmartPLS version 4 (Ringle et al., 2014) for descriptive statistical analyses, and inferential statistics such as psychometric properties of the research instrument, and partial least squares structural equation modeling (Hair et al., 2017) for the path analysis depicted in Figure 2. The Cronbach’s alpha coefficient, composite reliability (CR), average variance extracted (AVE), square root of AVE, and Fornell-Larcker Criterion were to evaluate the psychometric properties of the scales adapted in this investigation.

Figure 2. Workplace diversity dimensions and employee performance. Source: Emerged from statistical analysis (2023).

4. Results

The preliminary analysis necessary for this study involved conducting an exploratory factor analysis (EFA), the results of which can be found in Table 1. The cross-loaded items, as well as items with poor factor loadings were excluded during exploratory factor analysis to improve the Cronbach’s alpha coefficients and AVE, which must be greater than the threshold of 0.5 for convergent and discriminant validity of the reflective latent variables. To establish convergent and discriminant validity, specific items (AD3, AD4, AD5, AD6, EB1, EB2, ED4, ED5, GD3-6, R3, and R5) were removed from the Workplace Diversity Questionnaire. Similarly, certain items (EP4, EP5, EP6, EP8, EP9, EP10) were eliminated from the Work Performance Questionnaire to establish convergent and discriminant validity. The factor loadings for the six latent variables, along with the reliability and validity of the scales measuring the effects of workplace diversity dimensions on employee performance in the participating SOEs in Namibia, are presented in Table 1.

Table 1. Reliability and convergent validity of the reflective latent variables.

Latent variable	Indicator	Loading	VIF	Mean	SD	Cronbach’s alpha	CR	AVE
Age diversity	AD1	0.833	1.766	0.563	0.032	0.794	0.796	0.660
	AD2	0.791	1.766	0.535	0.031
Educational background	EB3	0.804	1.488	0.359	0.030	0.805	0.810	0.504
	EB4	0.645	1.799	0.287	0.036
	EB5	0.754	1.834	0.336	0.031
	EB6	0.622	1.811	0.278	0.030
Employee performance	EP1	0.785	2.512	0.276	0.045	0.811	0.816	0.518
	EP2	0.615	1.771	0.342	0.023
	EP3	0.706	2.088	0.268	0.025
	EP7	0.761	1.295	0.309	0.023
Ethnicity diversity	ED1	0.717	2.442	0.288	0.028	0.843	0.844	0.571
	ED2	0.790	2.082	0.317	0.030
	ED3	0.708	1.859	0.286	0.031
	ED6	0.803	1.600	0.322	0.039
Gender diversity	GD1	0.726	1.953	0.467	0.040	0.823	0.869	0.726
	GD2	0.962	1.953	0.616	0.041
Religion	R1	0.674	1.412	0.295	0.146	0.808	0.811	0.517
	R2	0.721	1.726	0.309	0.146
	R4	0.745	2.054	0.317	0.100
	R6	0.734	1.871	0.309	0.107

Note: SD: standard deviation; CR: composite reliability; AVE: average variance extracted.

Source: Survey (2023).

Table 1 indicates a range of factor loadings from 0.615 to 0.962. The items measuring the reflective latent variables loaded quite well, judging from the AVE values. The AVE values ranged from 0.504 to 0.726. To ascertain convergent validity, the AVE value must be greater than 0.5 (Hair et al., 2019). The AVE values reported in this scholarly work are higher than the cut-off point of 0.5. The convergent validity of reflective latent variables was assessed by examining the AVE, which was supported by composite reliability coefficients ranging from 0.796 to 0.869. This indicates that the measures used in the study were reliable and exhibited convergent validity, as they captured a substantial portion of the variance within their respective constructs.

The internal consistency of the measurement scales employed in this study was assessed using Cronbach’s alpha coefficients for the latent variables, which ranged from 0.794 to 0.843. As all the scales used to measure the reflective latent variables in this study yielded Cronbach’s alpha coefficients higher than 0.7, they were deemed reliable (Pallant, 2020). The discriminant validity of the reflective latent variables is presented in Table 2, utilizing Fornell-Larcker’s criterion and the heterotrait-monotrait (HTMT) ratio.

Table 2. Discriminant validity of latent variables and collinearity evaluation of predictors.

Discriminant validity of latent variables by Fornell–Larcker’s criterion
Latent variable	AD	EB	EP	ED	GD	RD
Age diversity (AD)	0.812
Educational background (EB)	0.747	0.710
Employee performance (EP)	0.580	0.621	0.720
Ethnicity diversity (ED)	0.592	0.708	0.451	0.756
Gender diversity (GD)	0.627	0.673	0.418	0.667	0.852
Religion diversity (RD)	0.127	0.286	0.177	0.480	0.336	0.719
Note: Diagonals in bold are the square roots of AVE.
Discriminant validity evaluation for the reflective variables by HTMT criterion
Latent variable	AD	EB	EP	ED	GD	RD
Educational background (EB)	0.745
Employee performance (EP)	0.577	0.612
Ethnicity diversity (ED)	0.592	0.729	0.449
Gender diversity (GD)	0.637	0.692	0.422	0.684
Religion diversity (RD)	0.128	0.290	0.176	0.482	0.349
Collinearity evaluation between the predictor constructs by inner VIF values
Latent variable	Employee performance
Age diversity (AD)	1.000
Educational background (EB)	1.000
Employee performance (EP)	----
Ethnicity diversity (ED)	1.000
Gender diversity (GD)	1.000

Source: Survey (2023).

Statistically, to establish discriminant validity, the square roots of AVE for each latent variable must be greater than the correlations between constructs (Fornell & Larcker, 1981; Hair et al., 2019). A comparison of the square roots of AVE values and the inter-construct correlations reveals that the reflective latent variables’ discriminant validity was established in this scholarly work. The HTMT was employed to examine the similarity between the predictors, therefore if the ratio is below 1, the study’s discriminant validity (Henseler et al., 2015) was ascertain in the study. All HTMT ratios, reported in Table 2, are below the threshold value.

The findings shown in Table 2 ascertain the discriminant validity of key reflective latent variables examined in the study. One may infer that the assessment scales adapted to examine the effects of workplace diversity dimensions on employee performance in SOEs are valid and dependable based on the empirical data shown in Table 2. For all construct combinations shown in Table 2, the variance inflation factor (VIF) scores were employed to evaluate the latent variables multi-collinearity. As the VIF values were determined to be below the accepted threshold of 3.3, it can be inferred that there were no significant issues of multicollinearity among the workplace diversity dimensions in predicting employee performance because they are less than 3.3 (Becker et al., 2015). Figure 2 shows the outcomes of the partial least square SEM and path analysis conducted in this study.

The statistics illustrated in Figure 2 reveals that age diversity exerts a significant positive effect on employee performance (β = 0.294, p < 0.001, n = 350). This means that generational diversity plays a significant role on employee performance in the participating SOEs in Namibia. Statistically, educational background has a significant positive effect on employee performance (β = 0.455, p < 0.001, n = 350) in the participating SOEs. These workplace diversity dimensions (age and educational background) explained (R²=0.420, p < 0.001, n = 350) 42 per cent of the variations in employee performance in the participating SOEs in Namibia. Conversely, workplace diversity dimensions such as gender (β= −0.070, p > 0.05, n = 350), ethnicity (β= −0.027, p > 0.05, n = 350) and religion (β= −0.046, p > 0.05, n = 350) exert no significant effects on employee performance in SOEs. The results showed that workplace diversity such as gender, ethnicity and religion do not contribute to employee performance in the participating SOEs in Namibia. This means that discrimination based on gender, ethnicity, and religion affiliations or spiritualities should be discouraged in SOEs, since such discriminations made no significant contributions to employee performance in the participating SOEs in Namibia. The effects of workplace diversity dimensions on employee performance, as well as the decisions reached on the research hypotheses formulated in this study are reported in Table 3.

Table 3. Direct effects of key latent variables.

Hyp	Direct effect	M	SD	Coeff	T Stat	p values	Decision
H1	Age diversity -> Employee performance	0.242	0.064	0.294	3.825	0.000	Supported
H2	Educational background -> Employee performance	0.325	0.073	0.455	4.306	0.000	Supported
H3	Ethnicity diversity -> Employee performance	0.054	0.074	−0.027	0.708	0.479	Not supported
H4	Gender diversity -> Employee performance	0.005	0.060	−0.070	0.158	0.875	Not supported
H5	Religion -> Employee performance	0.029	0.046	0.046	0.488	0.626	Not supported

Source: Survey (2023).

The findings reported in Table 3 revealed that hypotheses 1 and 2 were supported in this study, meaning that generational diversity and educational background made significant contributions to employee performance in the participating SOEs in Namibia. Conversely, hypotheses 3, 4 and 5 were not supported, which means that workplace diversity dimensions such as ethnicity, gender and religion made no significant contributions to employee performance in the participating SOEs in Namibia.

5. Discussion

The main objective of this research was to examine the effects of workplace diversity dimensions on employee performance in selected SOEs in Namibia. The discussion of findings provided in this section was based on the cross-sectional survey of 350 respondents from participating SOEs in Namibian. The discussion of finding provided in this scholarly work is divided into theoretical contribution and practical implications to diversity management in SOEs in Namibia.

5.1. Theoretical contribution

The findings of this study have several important theoretical contributions. The current study provides theoretical contribution to enhance the understanding of the influence of specific workplace diversity dimensions on employee performance, which can be utilized to inform the appropriate application of social categorization and social identity theories in SOEs. In this context, the results revealed that work group identification based on age (generational diversity) and educational diversity or (categorization based on educational qualifications and competencies) are significantly associated with employee performance in SOEs. These findings can be support by previous studies (Mugwe & Moses, 2020; Mekasha, 2020; Muange & Kiptoo, 2020; Odhiambo et al., 2018) establishing the influence of age diversity and educational diversity on employee performance in other sectors of the economy. Firstly, the findings of this study contribute to the existing literature by highlighting the role of age diversity and educational background in influencing employee performance in SOEs. It supports the notion that a diverse workforce comprising individuals with different age groups and educational backgrounds can positively impact organizational performance. Secondly, the positive and significant effect of age diversity on employee performance supports previous research conducted by Bashir et al. (2021), which emphasized the value of generational diversity in enhancing organizational outcomes. These findings suggest that organizations should recognize and leverage the benefits of age diversity to improve employee performance in SOEs. Thirdly, the significant positive effect of educational background on employee performance aligns with the findings of Andoh et al. (2019), highlighting the importance of educational diversity in promoting innovation and problem-solving within organizations. These results highlight the significance of considering employees’ educational backgrounds when aiming to enhance their performance in SOEs.

While previous studies (Ali et al., 2021; Herbert et al., 2023; Kebede, 2017; Mohammad, 2019; Muange & Kiptoo, 2020; Zhuwao et al., 2019) have established the effects of workplace diversity dimensions such as gender, ethnicity, and religion on employee performance and/or organizational outcomes in different sectors in other African countries. The lack of significant effects observed for such workplace diversity dimensions on employee performance in the participating SOEs in Namibia, raises interesting questions and calls for further exploration. The non-significant effects of workplace diversity dimensions such as gender, ethnicity, and religion on employee performance contradict the findings of (Chaudhry & Sharma, 2016; Hapompwe et al., 2020; Singh & Babbar, 2020), who have suggested that these dimensions can contribute to organizational performance. These contrasting results indicate the effects of gender, ethnicity, and religion on employee performance may vary across different contexts, challenging existing literature and require further investigation. The findings of this study contribute significantly to the theoretical understanding of workplace diversity dimensions and their effects on employee performance within Namibian SOEs. Specifically, the study emphasizes the role of age and educational background diversities in influencing employee performance in this context. This aligns with the social categorization and social identity theories, shedding light on work group identification based on generational and educational diversity. Therefore, the theoretical implication is that workplace diversity dimensions like gender, ethnicity, and religion may not exert direct significant effects on employee performance in the participating SOEs in Namibia, thus discouraging discriminatory practices based on these factors in SOEs.

5.2. Practical implications

The practical implications of this study gain heightened relevance when contextualized within Namibian SOEs and therefore are twofold. Firstly, the positive relationship between age diversity and employee performance suggests that organizations should foster an inclusive environment that values and promotes intergenerational collaboration. Encouraging knowledge sharing and creating opportunities for different age groups to work together can lead to improved performance in SOEs.

Secondly, the significant positive effect of educational diversity on employee performance highlights the importance of hiring individuals with diverse educational backgrounds, aligning with the unique challenges and opportunities within Namibian SOEs. By assembling teams with varied educational experiences and expertise, organizations can enhance their problem-solving capabilities and innovation, ultimately driving performance in SOEs (Tariq Khan & Jabeen, 2019). The positive influence of age and educational background diversities on employee performance emphasizes the importance of embracing generational differences and fostering a learning culture within SOEs. Managers should recognize the value of diverse perspectives and leverage the knowledge and skills of employees from different age groups and educational backgrounds to enhance overall performance (Zhuwao, 2017). The insignificance of workplace diversity dimensions such as gender, ethnicity, and religion in relation to employee performance suggests that discriminatory practices based on these factors should be actively discouraged within SOEs. Organizations should strive to create an inclusive and equitable working environment where all employees are treated fairly, regardless of their gender, ethnicity, or religious affiliations (Mande et al., 2020).

Human Resource policies and practices should be designed to attract and retain a diverse talent pool. Efforts should be made to recruit individuals from diverse backgrounds, ensuring representation across age, gender, ethnicity, religion, and educational qualifications. Additionally, training programs should be implemented to promote intercultural sensitivity and effective communication among employees (Adewole, 2013).

5.3. Limitations and future research

While this study makes valuable contributions to the understanding of workplace diversity dimensions and their effects on employee performance in Namibian SOEs, it is essential to acknowledge certain limitations. This study focused on SOEs in Namibia, which may limit the generalizability of the findings to other organizational contexts or sectors within the country. Future research could replicate the study in different industries or countries to validate the results. The use of self-report measures and cross-sectional data may introduce common method biases and restrict the ability to establish causal relationship between workplace diversity dimensions and employee performance. Employing longitudinal studies or experimental designs could provide more robust evidence of the relationship over time.

Additionally, while this study investigated various dimensions of workplace diversity, such as age, gender, ethnicity, religion, and educational background, it did not explore other potential dimensions like disability, socioeconomic background, or language diversity. Future research should consider incorporating these dimensions to provide a more comprehensive understanding of their impact on employee performance. Furthermore, the study could delve intothe mediating or moderating mechanisms that explain the relationship between workplace diversity dimensions and employee performance, offering deeper insights into the underlying processes. Lastly, exploring potential interaction effects between different diversity dimensions would contribute to unravelling complex dynamics and shed light on the combined influence of multiple diversity factors on employee performance.

6. Conclusions

In a nutshell, this study examined the effects of workplace diversity dimensions on employee performance in selected SOEs in Namibia. The findings revealed that age diversity and educational background diversity significantly influenced employee performance, emphasizing the importance of embracing generational differences and fostering a learning culture within SOEs. However, workplace diversity dimensions such as gender, ethnicity and religion showed no significant effects on employee performance. These results suggest the need to discourage discriminatory practices based on these factors and strive for an inclusive work environment in SOEs. HR policies should focus on attracting and retaining a diverse talent pool, while training programs should promote intercultural sensitivity and effective communication among employees. Overall, this study provides insights into the importance of workplace diversity in enhancing employee performance and calls for continued efforts to promote inclusivity and leverage diverse perspectives within SOEs.

Ethical approval

Informed consent was obtained from all subjects involved in the study.

Author contributions

M.T. conceptualized and designed the research; participated in the acquisition; designed the questionnaire, participated in the data collection. S.O.A. analysis and interpretation of results; guided the conceptualization of the research, supervised. All authors have read and agreed to the published version of the manuscript.

Acknowledgment

This research received no external funding.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The datasets utilized and analyzed in this study can be obtained from the corresponding author upon reasonable request.

Additional information

Notes on contributors

Merlyn Tjimuku

Merlyn Tjimuku, a driven PhD candidate, is actively engaged in pioneering research centred on her thesis, ‘Assessing the Effects of Emotional Intelligence, Psychological Capital, and Workplace Diversity on Employee Performance in Namibian State-Owned Enterprises (SOEs).’ Aspiring to become an academic and researcher, Merlyn’s research activities aim to unravel the intricate connections between emotional intelligence, psychological capital, workplace diversity, and employee performance. Her commitment extends beyond the thesis, as Merlyn envisions crafting additional journal articles to delve deeper into the multifaceted dimensions of workplace dynamics. Through her scholarly pursuits, she seeks to contribute valuable insights to the broader academic community while addressing pertinent issues within Namibian SOEs. Merlyn Tjimuku’s research journey reflects a dedicated endeavour to enhance organizational effectiveness by understanding the interplay of emotional intelligence, psychological capital, and workplace diversity, setting the stage for impactful contributions in academia and beyond.

Sulaiman Olusegun Atiku

Sulaiman Olusegun Atiku is currently the Director of Research and a Professor in Human Resource Management at Harold Pupkewitz Graduate School of Business (HP-GSB), Namibia University of Science and Technology, Namibia. Prof. Atiku is an adjunct professor of human resource management at Walter Sisulu University, South Africa. He is a pragmatic researcher specializing in strategic human resource management. His current research area of interest includes human capital formation for the fourth industrial revolution and advanced green human resource management practices. He has over 16 years of experience in higher education. A native of Lagos, Sulaiman graduated from the University of KwaZulu-Natal with a PhD degree in Human Resource Management. His Master of Science degree was awarded in Human Resources and Industrial Relations at Lagos State University, Nigeria. His Bachelor of Science (Honours) degree was awarded at Lagos State University in Industrial Relations and Personnel Management. He has lectured in several courses in his field (home and abroad) and published many scholarly articles in international journals. He is a member of the International Labour and Employment Relations Association (ILERA), the Nigerian Institute of Management (NIM), and the Institute of People Management (IPM) in South Africa.