WORKFORCE DIVERSITY, DIGITAL CAPABILITY AND EMPLOYEE PERFORMANCE: EVIDENCE FROM IT/ITES ORGANIZATIONS IN KARNATAKA

The study concludes that workforce diversity is an important factor influencing digital capability and employee performance among employees of IT/ITES organisations in Karnataka. The findings demonstrate that workforce diversity positively contributes to digital capability, while digital capability has a stronger positive influence on employee performance. The study also confirms that workforce diversity directly contributes to employee performance. Significantly, digital capability partially mediates the relationship between workforce diversity and employee performance, indicating that the benefits of a diverse workforce can be strengthened through employees’ ability to effectively use and adapt to digital technologies. Finally, the findings highlighted the importance of integrating diversity management with digital capability development. IT/ITES organisations can enhance employee performance by creating an inclusive work environment while simultaneously investing in digital skills, technological adaptability and effective digital work practices.

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