• Multiculturalism brings diversity into a business

  • A diverse workforce enhances innovation and creativity

  • It improves decision-making processes and enhances problem-solving.

How multiculturalism Contributes to Competitive Advantage

Multiculturalism refers to the presence of different distinct ethnic or cultural groups within an organization or society.

Presently, every country comprises a population that includes individuals from different ethnic groups, social backgrounds, and even different cultures.

Hiring individuals from different cultures and ethnicity provides several gains that can offer a competitive advantage to your establishment.


First, a diverse team will improve marketing.

In present times, businesses are expanding across borders and into new territories to reach diverse markets. These markets can only be entered successfully by understanding the consumers and utilizing an approach that is familiar with the new market.

How do businesses achieve success in a new market? By having an insider within your business, who understands the new consumers and knows the in and outs of the new market.

Therefore, to infiltrate new markets, a business requires a diverse marketing team, which has adequate knowledge about the target group. These products and services can only capture the consumers’ eye through diverse thinking, which is attained through multiculturalism.

Second, studies indicate that multiculturalism helps in decision-making.

Teams with culturally-diverse members are said to make better decisions than homogeneous teams. The team members tend to have different backgrounds that result in a diversity of thoughts and ideas when tackling a problem.

People from diverse cultural backgrounds have different ways of observing, interpreting, and contemplating different situations. This offers a wide array of adaptable solutions. Additionally, multicultural teams can easily solve complex organizational problems. This is because they have diverse thought processes and resources to produce a wide scope of alternatives, which can offer different ways of solving problems.

Third, multiculturalism in business leads to creativity and innovation.

A multicultural world is a vast pool of great ideas. When an employer brings different cultures and ethnicity into a business, it becomes easy to source ideas.

With the generation of different ideas, a business can come up with varying products and services that can meet the demand in different cultures. The diversity in multicultural teams brings along different ideas that contribute to new knowledge, products, services, and business processes.

Therefore, multiculturalism leads to improved decision-making, enhanced creativity, successful marketing to various kinds of consumers, and increased innovation.

It adds value to a business and contributes to a firm's competitive advantage.