DefinePK

Abstract

Purpose: This study investigates the impact of Diversity, Equity, and Inclusion (DEI) practices on fostering a culture of participative management in multinational companies (MNCs) based in Pakistan. Given the increasing global focus on inclusive leadership, this research aims to explore how DEI strategies translate into empowered decision-making environments in culturally diverse corporate contexts.
Design: A quantitative research design was employed using a structured survey distributed to 384 employees working in selected MNCs across sectors including IT, pharmaceuticals, consultancy, fast food, and engineering in Karachi and Lahore, Pakistan. The study used Smart PLS (SEM-PLS) for analyzing the measurement and structural models. Constructs of DEI were treated as independent variables, while participative management factors (employee empowerment, collaborative decision-making, open communication, and continuous learning) were treated as dependent variables.
Findings: The findings revealed a statistically significant and positive relationship between DEI practices and participative management culture. All constructs demonstrated acceptable reliability and validity. Path coefficients from SmartPLS analysis confirmed that DEI variables had a strong influence on employee empowerment (β = 0.69), collaborative decision-making (β = 0.74), and open communication (β = 0.65), supporting all proposed hypotheses. The R² value for participative management was 0.78, indicating strong predictive relevance of the model.
Implications: Theoretically, this study contributes to expanding the understanding of DEI’s role in participative leadership frameworks in emerging economies. Managerially, it provides practical insights for corporate leaders to implement effective DEI strategies that foster inclusive and collaborative organizational cultures.
Originality: This research fills a significant empirical gap in the South Asian context, particularly within Pakistani MNCs, where studies linking DEI to participative management culture are limited. It offers a strategic roadmap for fostering inclusive, engaged, and productive workplace cultures through DEI practices