Abstract
This study examines the impact of workforce diversity on innovation performance among steel manufacturers in the United Arab Emirates (UAE), with a focus on risk orientation as a moderating factor. Utilizing a quantitative research design, 400 employees were randomly selected from a population of 10 steel companies, resulting in 351 valid responses after accounting for outliers. The analysis was conducted using SMART PLS 4.0 software. The instrument used in this study consists of 68 items, demonstrating high reliability and validity. The findings reveal significant impacts of age (_=0.341, p=0.00), education (_=0.45, p=0.00), language (_=0.123, p=0.02), religious beliefs (_=-0.114, p=0.00), and values (_=0.083, p=0.00) on innovation performance. In contrast, ethnicity (_=0.09, p=0.06), gender (_=-0.129, p=0.06), and norms (_=-0.021, p=0.63) showed no significant impact. Risk orientation significantly enhanced innovation performance (_=0.264, p=0.00), but its moderating effects on the relationship between diversity dimensions and innovation performance were mostly non-significant. Marginal moderating effects were observed on norms (_=-0.046, p=0.26) and education (_=0.025, p=0.25). The study concludes that specific aspects of workforce diversity, particularly age, education, language, religious beliefs, and values, are crucial for fostering innovation. While risk orientation directly contributes to innovation performance, its role as a moderator is limited. These insights highlight the importance of leveraging diversity and risk orientation to enhance innovation within the steel manufacturing sector in the UAE. Future research should explore how workforce diversity shapes an innovative culture using qualitative approaches to deepen understanding. Additionally, longitudinal studies could provide further insights into the long-term effects of diversity on innovation. Steel manufacturers are encouraged to embed workforce diversity in human resource policies to drive innovation. Thus, they can create a more inclusive and innovative work environment to adapt to the evolving market demands. Workforce diversity and risk orientation is pivotal for the sustained growth of steel manufacturers in the UAE.