Open Access Article SciPap-1560
Effect of Diversity Management on Organizational Trust, Employee Innovative Behavior, and Employee Engagement: Evidence from Indonesia
by Anastasia Mariana Derita Batmomolin 1,*, Muhammad Sadikin 2, Jimmy Hadi 3, Andreas Gunawan P 4 and Stefanus Ms Ms Sadana 5 iD icon

1 Sosial science, STPM Santa Ursula, Jl. Wirajaya 3, Ende, Flores NTT, Ende, Flores, NTT 86318, Indonesia

2 Economic and Business, Universitas Trisakti, Jl. Kyai Tapa No.1, RT.6/RW.16, Grogol, Kec. Grogol petamburan, Jakarta 11440, Indonesia

3 Economic and Bussiness, Universitas Trisakti, Jl. Kyai Tapa No.1, RT.6/RW.16, Grogol, Kec. Grogol petamburan, Jakarta 11440, Indonesia

4 Economic and Bussiness, Universitas Trisakti, Jl. Kyai Tapa No.1, RT.6/RW.16, Grogol, Kec. Grogol petamburan, Jakarta 11440, Indonesia

5 Economic and Business, Perbanas Institute, Jl. Perbanas, Karet Kuningan Setiabudi, Jakarta 12940, Indonesia

* Authors to whom correspondence should be addressed.

Abstract: Internationalization and economic globalization cause diversity in organizations to be higher, thus requiring a diversity management approach. This quantitative study aims to analyze the effect of diversity management on organizational trust, employee innovative behavior, and employee engagement. Data were collected using a questionnaire involving 115 employees of a large private bank in Jakarta, Indonesia. Analysis of research data using structural equation modeling (SEM) with SmartPLS software. The results showed that diversity management has a positive effect on organizational trust, employee innovative behavior, and employee engagement. Organizational trust has a positive effect on employee innovative behavior and employee engagement. Organizational trust mediates the effect of diversity management on employee innovative behavior and employee engagement. Diversity management is very important for organizations today because it can promote organizational trust, create employee innovative behavior and strengthen employee engagement, so every organization needs to establish policies regarding diversity management practices and consistently make it happen.

Keywords: Employee Engagement, Indonesia, Diversity Management, Organizational Trust, Employee Innovative Behavior

JEL classification:   M14 - Corporate Culture • Diversity • Social Responsibility,   O15 - Human Resources • Human Development • Income Distribution • Migration

SciPap 2022, 30(2), 1560; https://doi.org/10.46585/sp30021560

Received: 6 June 2022 / Revised: 17 September 2022 / Accepted: 23 September 2022 / Published: 1 October 2022