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A study of impact of inclusive leadership on innovative behaviors and

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DOI: 10.54517/esp.v9i1.1721

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Environment and Social Psychology (2024) Volume 9 Issue 1
doi: 10.54517/esp.v9i1.1721

Research Article
A study of impact of inclusive leadership on innovative behaviors and
diversity at workplace
Lochan Sharma1, Priyanka Agarwal1, Bhavesh P. Joshi2, Nitendra Kumar1,*, Sadhana Tiwari3
1
Amity Business School, Amity University, Noida 201303, India
2
Manav Rachna International University, Faridabad 121004, India
3
Sharda School of Business Studies, Sharda University, Greater Noida 201310, India
* Corresponding author: Nitendra Kumar, [email protected]

ABSTRACT
This study focuses on the association of inclusive leadership on innovation and execution of the idea of diversity at
the workplace, moreover, this research also assesses the contribution of diversity in the innovative work culture in the
banking industry in the national capital region. A conceptual model was designed to assess the association of inclusive
leadership on innovation and the idea of diversity and to test the conceptual model, the researcher utilized multi-wave
and multi-source data acquired from 5 enterprises 40 respondents each. Inclusionary leadership has a strong good impact
on diverse work cultures and innovation, according to the findings. Additionally, diversity was shown to be favorably
associated with innovation in the workplace. The researcher has used various scales for Inclusive leadership, diversity at
the workplace, and innovative culture. To show the association and impact of factors, confirmatory factor analysis and
regression have been used by the researcher.
Keywords: inclusive leadership; diversity; innovation; national capital region

1. Introduction
Markets have become increasingly dynamic, flexible, and changing in the post-modern period, and the
natural way for organizations and institutions to adapt to this transition is to become more adaptable, versatile,
and evolving as well[1]. In an increasingly competitive market marked by globalization, shorter product life
spans, and fast technological improvement, innovation is increasingly recognized as a vital facilitator of
competitiveness, performance, and growth. Businesses that are extremely aggressive and technology-driven
raise the value of knowledge workers to unprecedented heights[2] Innovation has become the defining
characteristic of long-term success and survival for small and medium-sized businesses (SMEs), as well as a
critical source of developing competitive advantages for all organizations over their competitors [3]. Scholars
Baregheh et al.[4] and managers have been highlighting the significance of innovation in acquiring a
competitive advantage, maintaining growth, and attaining long-term organizational success. According to
Schumpeter[5] one of the most important aspects of innovation was when a person had a fresh, original, and
creative concept and expanded on it. Given the significance of employee creativity in firms, it was necessary

ARTICLE INFO
Received: 27 May 2023 | Accepted: 19 September 2023 | Available online: 13 November 2023
CITATION
Sharma L, Agarwal P, Joshi BP, et al. A study of impact of inclusive leadership on innovative behaviors and diversity at workplace. Environment
and Social Psychology 2024; 9(1): 1721. doi: 10.54517/esp.v9i1.1721
COPYRIGHT
Copyright © 2023 by author(s). Environment and Social Psychology is published by Asia Pacific Academy of Science Pte. Ltd. This is an Open
Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), permitting
distribution and reproduction in any medium, provided the original work is cited.

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 Environment and Social Psychology | doi: 10.54517/esp.v9i1.1721

to find elements that may encourage employee inventive behavior, which referred to employees participating
in new activities.
Previous studies[6–8] have shown that majority of the implemented ideas (80%) were innovated by the
employees with innovative behavior which gave companies the ability to achieve their goals and grow. A
significant amount of scholarship has focused on investigating the characteristics that encourage and facilitate
IWB among employees[9].
Mumford and Hunter[10] seen in their study that Leadership is the essential component influencing an
organization’s creativity and innovation. Leadership is a behavior that promotes employee’s attitude and
behavior for achieving organizational goals[7]. As employees move from the age of productivity to the age of
innovation[11], there is a need to change the way leaders interact with them and inclusive leadership has
undoubtedly been identified as the most essential component influencing organizational creativity and
innovation[12]The characteristics of a creative workplace that include inclusiveness, openness, individuality,
and encouragement of new ideas all fall under the umbrella of inclusive leadership. Unfortunately, there are
so few studies examining the link between inclusive leadership and successful innovation. Different from the
available literature[13], our study provided fresh theoretic insights into how inclusive leadership influenced
employee creative behavior. Innovation necessitated change, which necessitated inclusivity, openness, and
support by its very nature (i.e., diversity). Businesses that can create an atmosphere that encourages innovation
may gain a long-term competitive edge in the field of innovation. According to the leader-member exchange
(LMX) theory, suggest that inclusive leadership, which acknowledges employees’ input and facilitates their
work, can instill leadership trust in employees, who will then feel confident to implement changes in their jobs,
thereby not only improving their job resources but also making the job more difficult for them [14]. Employees
will be inspired to produce and implement new ideas with these added resources and pleasant feelings.
In recent times, several prevalent challenges such as innovation stagnation, lack of inclusion, diversity
biasness have been observed in the workplace, and inclusive leadership and diversity initiatives seek to address
these challenges by promoting a more equitable, inclusive, and innovative work environment [15].
Globally, the interrelated concerns of inclusive leadership, creative behavior, and diversity are critical to
the success and sustainability of organizations and communities throughout the world. Scholars [16] have
emphasized the significance of inclusive leadership as a motivator for developing diverse and equal workplaces.
Organizations throughout the world recognize that respecting diversity and establishing inclusive
environments not only corresponds with ethical responsibilities, but also improves performance and creativity.
Furthermore, Chesbrough[17] argued innovation is increasingly viewed as a global endeavor in which
governments and businesses compete globally. Diverse teams with global perspectives are frequently at the
front of game-changing inventions, boosting creativity and adaptation. The work of researchers Cox and
Blake[18] serves as a testament to the recognition of diversity as a driving force behind institutional resilience
and societal and economic advancement on a global scale. They have highlighted how embracing diversity is
not only a strategic advantage for organizations but also reflects the interconnected world in which we live. In
summary, these interrelated issues are not limited to geographic boundaries but represent common global needs
for organizations seeking to thrive in a rapidly changing and diverse world.
Many studies have demonstrated that leadership styles such as paternalistic leadership, ethical leadership,
and transformational leadership all have a significant influence on the inventiveness of employee[19–21]. It’s still
unclear how inclusive leadership affects creativity, notwithstanding this study. Inclusive leadership styles are
different from those that aren’t. The characteristics of a creative workplace that include inclusiveness, openness,
individuality, and encouragement of new ideas all fall under the umbrella of inclusive leadership [14].

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2. Theoretical foundation and research hypotheses

2.1. Inclusive leadership
Nembhard and Edmondson[22] first suggested the notion of inclusive leadership in the area of management,
which they described as “words and acts by a leader or leaders that imply an invitation and respect for others’
contributions”. He went on to explain inclusive leadership in terms of a win-win situation characterized by a
shared vision and goal of interdependent linkages. A key focus was on how followers see their own and the
leader’s role in this context[23]. According to Saz-Carranza and Ospina[24], an inclusive leader is someone who
admits employees across levels of the business and is accountable for outcomes. In addition, an inclusive leader
was seen as critical to the formation of an inclusive organization. Three aspects of inclusive leadership were
identified:
 Listening, tolerance, and encouragement: James Macgregor Burns, in his book “Leadership” (1978)[25],
emphasized leaders respected workers opinions and failings by listening carefully to what they had to say,
logically tolerating their blunders, and encouraging and guiding them when they made mistakes.
 Focusing on Employee development and recognition: Robert K in his essay “The Servant as Leader”
(1970)[26] mentioned that rather than expressing envy, leaders respected and taught people by
concentrating on employee training and rewarding successes.
 Fair treatment and equity: Linda and Michael[27] discussed that leaders treated workers properly,
considering their interests and needs, displaying a fair attitude toward them, and ensuring that revenues
were shared.
When compared to other styles of leadership that is theoretically connected, inclusive leadership has a
distinct character of acceptance, belonging, uniqueness, and inclusion. Transformational leadership, in
particular, concentrated on inspiring and developing people based on the goals of the business, and it was
centered on the leader, with no active employee engagement, reciprocal impact, or incentives. In contrast to
servant leadership, which aims to help people thrive and develop, inclusive leadership aims to satisfy the needs
of all employees by being open and accessible in the workplace[28]. As a result, inclusive leadership training
and mentorship promoted a sense of inclusiveness and accessibility, enabling leadership, on the other hand,
emphasized leading by example and decentralizing power. Other leadership styles did not adequately capture
the core qualities of inclusive management based on the aforementioned differences, and there was minimal
overlap between inclusive leadership and current leadership conceptualizations. A few studies[15,18,22,29,30] have
studied the connection between inclusive leadership and a company’s capacity to inspire innovative behavior
among its workers when it comes to researching leadership. It was the goal of this research to determine the
effect of diversity characteristics on the innovative behavior of employees.
Figure 1 depicts the study design employed to achieve this goal.

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Figure 1. Conceptual framework.

2.2. Inclusive leadership and innovative work behavior

Inclusionary leadership, according to Nembhard and Edmondson[22], is described as “words and behaviors
by a leader or leaders that imply an invitation and respect for others’ contributions”[31]. Coming to the table at
whatever level, being a recognized participant, and being completely responsible for your contribution to the
best outcomes is what the term inclusive implies. The notion that “everyone counts”[32] with their access to
knowledge and resources[33] triumphed in this inclusion. Nembhard and Mor Barak[22,31] were the first to
develop the term “inclusive leadership”, stating that it “formed a scenario where views are respected”. Leaders’
inclusivity was defined as initiatives by leaders to involve people in conversations and decisions when their
opinions and viewpoints could otherwise be ignored. Inclusive leaders fostered a supportive environment for
all workers while maintaining a high level of impartiality[34]. Inclusive leaders started by showing consideration
for others, acknowledging their contributions, and responding to their needs, regardless of the crisis, injustice,
or conformist pressures they were facing. Leader-follower interactions were based on a basis of duty in both
directions, which generated legitimacy and approval.
Nembhard and Edmondson[22] demonstrated that inclusivity was linked to settings defined by power
imbalances, which encouraged behaviors such as asking and acknowledging others’ perspectives[22,31]. The
quality connection between leaders and followers was based on leaders and workers working together to
achieve common objectives, and this was shown by inclusive leaders’ emphasis on sharing advantages[35]. As
a result, the researchers[22,31,36] concluded workers who had a say in choices and debates freely spoke out,
advocated, and implemented new ideas[37]. Leaders that exhibited inclusive leadership traits established a
quality connection that fostered fairness of input and output to all workers without depending on the talents of
a single individual[23]. Employees were inspired to satisfy innovative work behavior-aligned work requirements
because they felt that their efforts were fairly rewarded in a relationship-focused on quality rather than quantity.
Domer[38] and Doos[39] distinguished innovative work behavior from creativity. Innovative Work Behavior
refers to the advancement and execution of valuable ideas[40]. Creativity refers to the invention of new ideas
[41,42]
. Inclusive leaders demonstrated their availability to employees through practical inclusion in work
activities[43], which stimulated employees to promote useful ideas[44–46] found that inclusive leaders were

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concerned about their followers’ interests, expectations, and sentiments, and were eager to help. In particular,
inclusive leaders give workers’ suggestions considerable attention. Employees were thus more likely to
respond by demonstrating extra-role behavior such as innovative work behavior[47,48]. The association between
inclusive leadership and innovative work behavior was substantiated by social exchange theory in this setting.
According to the social exchange hypothesis, supportive and inclusive leadership qualities made workers feel
obligated to compensate the leader and company. Employees were motivated to participate actively in issue
solving that needed innovative idea development[49].
Additionally, inclusive leaders provided their employees with emotional support, increasing their
credibility. As a consequence, inclusive leaders showed that they could make sound decisions based on their
principles[22,31,34,43]. Employees were encouraged to demonstrate innovative work behavior as a result of this
behavior[50]. One of the most important ways inclusive leaders showed their support for their staff was by
taking responsibility for the end outcomes, particularly when innovative ideas failed [22,31,34]. As a result,
under the presence of inclusive leadership, workers were encouraged to take chances in innovative work
behavior. Researchers discovered that inclusive leadership and innovative work Behavior had a good link.
Choi et al.[51] investigated and discovered a favorable association between inclusive leadership and creative
behavior among workers of Vietnamese telecommunication businesses. Javed et al.[52] investigated the link
between inclusive leadership and innovative work behavior between supervisor-subordinate dyads in
Pakistan’s textile sector. Their studies showed that inclusive leadership has a beneficial impact on innovative
work behavior. Employees engaged in creative activities, according to the authors, when they had a positive
connection with their bosses, who encouraged them to take chances in the invention, promotion, and execution
of new ideas.
Innovative behavior was defined as a set of actions including the invention, promotion, and execution of
new ideas for new technologies development. Employee inventive behavior was more concerned with the
innovation process than with the innovation output, which was beyond the realm of creativity. To create our
theoretical model, we followed research[53] and “drew upon the literature concerning inventive behavior in
general, including the literature on creativity.” Leadership styles have a long history of influencing employee
innovation in companies. Creativity was shown to be correlated with a variety of factors, including autonomy,
encouragement from superiors, and a positive work environment[42].
From a theoretical standpoint, inclusive leadership may encourage employee innovation in a variety of
ways. For starters, inclusive leaders may energies staff to participate in the creative process. Inclusion is a
process of strengthening organizational workers’ internal perceptions and a notion connected to intrinsic
motivation[54]. Increased motivation led to increased participation in creative activity. Second, organizational
support influenced workers’ job results, according to organizational support theory. Inclusive leaders were
able to give the resources needed for creative behavior, such as knowledge, time, and support. Employees
would have greater liberty and flexibility to participate in a creative activity if their supervisor backed them.
Boren[55] claimed that inclusion is built on workers’ fundamental trust, adding that managers utilize a variety
of talents to develop subordinates’ behavior capability and potential. Inclusive leadership can help employees
feel like they belong in the organization while still maintaining their uniqueness, as they fully contribute to the
processes and outcomes of innovation within the organization[56]. Last but not least, leaders who are open to
everyone may serve as examples of how to be innovative and inclusive. Inclusive leaders were more likely to
participate in quality improvement activities[22]. Open and harmonious communication, accessibility, and
offers are all characteristics of inclusive leadership that Carmeli et al.[45] claim to have found in their research.
Leadership created an environment where employees felt more accountable, had more decision-making power,
and received more information, feedback, and encouragement through appropriate inclusion. Employee

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participation in creative work was enhanced by general openness, availability, and accessibility. “Discretionary
conduct” was often used to describe the innovative activity. The distinctive characteristics of inclusive
leadership modified followers’ perceptions of support and encouraged more inventive conduct. As a result, we
proposed the following hypothesis based on organizational support theory.
 H1: Inclusive leadership is related to the innovative behavior of employees at the workplace.

2.3. Inclusive leadership and diversity at the workplace

Additionally, inclusive leaders provided their employees with emotional support, increasing their
credibility. As a consequence, inclusive leaders showed that they could make sound decisions based on their
principles[57,58].
According to a new study, it’s not enough to have a more diverse workforce. To gain the full advantages
of diversity, organizations must prioritize the inclusion of a diverse workforce[59,60] Some academics have
expressed concern about how to best encourage this kind of diversity. It becomes even more critical to ensure
that all members of a team feel valued and included. For inclusion, inclusive environment is essential because
it facilitates the use of multiple opinions and ideas that may improve decision-making and team performance.
As a consequence, the emphasis has shifted away from just achieving diversity to the need of creating inclusive
work environments that appreciate diversity and aid in minority employee integration [61–63].
To cultivate a sense of belonging and individuality, inclusive leadership is deemed essential[56,64]. While
transformational leadership emphasizes the need to integrate into the group’s goals, inclusive leadership
emphasizes the importance of each team member’s individuality and fosters a sense of belonging to maximize
each member’s contributions[56]. By explicitly encouraging team members to communicate their thoughts and
perspectives, inclusive leadership enables team members to discuss and exchange different viewpoints. The
inclusion of all members of a team is a leader’s decision-making fosters a more creative working environment.
Other leadership styles such as real leadership and transformational do not place as much emphasis on
developing and embracing uniqueness as inclusive leadership does[56,65]. Through the provision of the
necessary conditions, inclusive leadership attempts to manage equally the positive and negative effects of team
diversity by fostering a sense of belonging among team members.
Inclusive leaders are focused on establishing an environment where all team members may be themselves
in a diverse context. Leaders that are open to and appreciative of variety will create an atmosphere where this
is the norm[22,56]. Increasing openness to variation and decreasing intergroup prejudice may be achieved by
explicitly highlighting the importance of differences[56]. Diverse team members are seen as insiders rather than
outsiders, resulting in a greater sense of belonging for them.
This creates an environment in which team members are expected to discuss and trade their distinctive
features, as well as utilize them to influence work practices and decision-making. These findings are consistent
with the existing research[66–68]. When dealing with issues, leaders must create an environment that encourages
the expression of diverse viewpoints[56,65]. Leaders encourage people to communicate their different viewpoints
and encourage their colleagues to argue their disagreements.
An argument might be made that inclusive leaders are better at maintaining an inclusive culture while
also meeting the needs of all members of their teams, regardless of their ethnic or cultural background. The
unique viewpoints of all team members are actively considered and sought in an inclusive workplace, so those
group processes necessary to harness the potential benefits of a diverse team are also able to do so since all
team members are appreciated for who they are. We may say that inclusive leadership will mediate the
connection between ethnic and cultural diversity on a team and a welcoming environment, so reducing any
negative effects and increasing any beneficial effects. Therefore, the following theory is put forth.

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 H2: inclusive leadership encourages the idea of diversity at the workplace to promote innovation within
the organization.

2.4. Workplace diversity and innovation at the workplace

An innovative culture is an organization’s commitment to exploring new choices or approaches, as well
as uncovering new resources and developing new products, to improve its performance[69]. Employees may
demonstrate creativity by sharing ideas and methods for their employees when a business has a culture like
this. This mindset has been identified as critical to any organization’s advancement and success since it invites
other points of view, views, and improved performance[70]. This diversity of viewpoints creates an environment
among employees that, as a result of the differences, might result in higher levels of output in terms of ideas
and solutions for tasks and issues at work. As diversity in the workforce and creative culture are inextricably
linked, this is used as a backdrop for the present hypothesis. Employee engagement, team member interchange,
and, as a result, performance improves when workers are encouraged to share their ideas. This is accomplished
via the right implementation of a work environment that fosters creativity. The established status of workforce
diversity, on the other hand, might create settings in which workers are hesitant to share their opinions and
feelings for fear of disagreement with other members or a negative reputation.
According to the findings, organizations may pursue employment practices that foster diversity as a
strategy to boost the firm’s innovativeness[71]. As a consequence of the diversity in the workforce, different
viewpoints may interact, resulting in new and inventive ideas. This is referred to as a mediating effect since
diversity inside a company and among its employees is connected to increased creativity. Similarly, innovation
as a business culture may improve employee performance, implying a mediating relationship with the diversity
of the workforce, as previously indicated. Notably, at the company level, research has recognized the
expressive mediator (i.e., inventive atmosphere) of workforce diversity-performance connection. According
to the findings, educational diversity has a favorable impact on the inventive atmosphere, hence boosting an
organization’s creativity and efficiency[51]. This also demonstrates a link between an organization’s creative
culture, its diversity, and its task force, and the result in terms of organizational goals. New ways develop from
common ideas as innovation spreads more quickly across varied groups of workers. This is bolstered in this
situation since a varied staff will present several opinions for management to consider. As a result, greater
levels of performance will be achieved, creating a mediating impact on corporate culture (i.e., innovation).
Recent studies have examined the influence of innovation culture on organizational performance, using
institutional culture and organizational consistency as moderators. They discovered that there is a positive
correlation between an organization’s innovation culture and its performance[72]. This supports the current
research’s theoretical assumption that there is a direct link between performance and imaginative culture. It
has also been revealed that a company’s capacity to innovate is an important factor in its success[73]. According
to a recent study conducted by Zouaghi and his team[74] concluded that there is a positive correlation between
diversity and creative performance when social capital plays a role. Team effectiveness, team satisfaction, and
deep-level diversity were examined by Schoss and colleagues[75]. Tripathi and Ghosh[76] assert that the
innovation environment exhibits considerable diversity. The use of a creative atmosphere served as a mediator
in examining the correlation between team creative outputs and deep-level diversity. In Dubai, researchers
looked at the connection between an organization’s performance and its creative culture[77]. Organizational
performance may be influenced by the mediating factor (innovative culture), but its impact on surface and
deep levels of workforce diversity are unclear or contradictory. There are no quantitative measures to support
this study, even though it has been addressed qualitatively[78]. Because of the facts presented above, we believe
the following options are viable.

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 H3: Diversity in its adequate manner can contribute to the degree of an innovative culture.

3. Conceptual research framework

The conceptual framework in Figure 1 shows that inclusive leadership is positively related to innovation
at the workplace and it encourages the idea of diversity at the workplace to promote innovation within the
organization eventually, Diversity in its adequate manner contributes to the degree of an innovative culture
too.

4. Research objectives
 To study the association of inclusive leadership and employee innovative behavior.
 To study the impact of inclusive leadership that encourages the idea of diversity at the workplace to
promote innovation within the organization.
 To study the contribution of diversity to the degree of an innovative culture/innovative behavior.

5. Research design
This study is descriptive and exploratory in nature, where 15 service-based firms in Delhi National Capital
Region, including banks, law offices, Sinopec, and retailing facilities were surveyed. These companies were
originally brought to attention via conversations with other scholars and academicians. We used three strategies
to reduce the common bias: First, a three-month gap between two-waves was conducted. To lessen the impact
of memory and common method variance bias on their findings and increase their robustness, researchers
collected data on predictors and outcomes separately. Secondly, a two-source survey with employee-supervisor
corresponding was employed, since supervisors’ judgments of employee innovative behavior were
considerably more significant. Third, a rigorous program control was used throughout the questionnaire
(Appendix A) development and distribution process in this study. The department of human resources assisted
in conducting each survey. 200 subordinates and their corresponding supervisors were randomly picked at the
start of the survey, and all workers were given the option of participating or not. Surveys were provided in a
sealed envelope and respondents were urged to submit completed questionnaires directly to the researchers to
protect participant anonymity and reduce their fear of exposure and danger of responsibility. Anonymity had
been guaranteed. Before being delivered, the survey questions were coded. We sent questionnaires to 200
employees of 5 enterprises and asked them to submit demographic information (e.g., age, education, tenure,
and gender) as well as their perceptions of inclusive leadership.
Scaling: The researcher used a nine-item measure created by Carmerli et al.[15] to evaluate inclusive
leadership and rated as “IL” by the researcher and, for diversity eight assessment variables have been taken
and mentioned as “DIV”, and for innovative behavior[79] developed a nine-item scale to assess employee
inventiveness rated as “IB”.

6. Reliability test
As mentioned in Table 1 that Cronbach Alpha values are higher than 0.7. It is generally accepted that a
reliability score of 0.6–0.7 indicates an adequate level of dependability, while a score of 0.8 or more indicates
a very high level of dependability. Cronbach’s alpha value for all scales was more than 0.07, indicating that
the data is acceptable and credible.

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Table 1. Reliability test.

Variable Cronbach Alpha
Inclusive leadership 0.926
Diversity 0.951
Innovative behavior 0.945

Table 2. Confirmatory factor analysis.

Factor Indicator Estimate SE Z p Standard estimate
Inclusive leadership IL1 0.505 0.0431 11.7 < 0.001 0.73
IL2 0.582 0.0464 12.5 < 0.001 0.765
IL3 0.545 0.0446 12.2 < 0.001 0.752
IL4 0.558 0.041 13.6 < 0.001 0.807
IL5 0.511 0.0416 12.3 < 0.001 0.756
IL6 0.541 0.0426 12.7 < 0.001 0.773
IL7 0.678 0.0529 12.8 < 0.001 0.777
IL8 0.644 0.0489 13.2 < 0.001 0.791
IL9 0.559 0.0465 12 < 0.001 0.743
Workplace diversity DIV1 0.65 0.0549 11.8 < 0.001 0.73
DIV2 0.742 0.0523 14.2 < 0.001 0.832
DIV3 0.756 0.0525 14.4 < 0.001 0.837
DIV4 0.737 0.0513 14.4 < 0.001 0.835
DIV5 0.658 0.0413 15.9 < 0.001 0.887
DIV6 0.713 0.0451 15.8 < 0.001 0.883
DIV7 0.687 0.0443 15.5 < 0.001 0.875
DIV8 0.654 0.0422 15.5 < 0.001 0.875
Innovation IB1 0.822 0.0553 14.9 < 0.001 0.851
IB2 0.77 0.0533 14.4 < 0.001 0.836
IB3 0.751 0.0524 14.3 < 0.001 0.832
IB4 0.84 0.0571 14.7 < 0.001 0.846
IB5 0.888 0.0608 14.6 < 0.001 0.842
IB6 0.829 0.0632 13.1 < 0.001 0.785
IB7 0.754 0.0551 13.7 < 0.001 0.807
IB8 0.749 0.0515 14.5 < 0.001 0.84
IB9 0.796 0.0576 13.8 < 0.001 0.812

 Inclusive leadership items:

 IL1: My boss is eager to hear fresh ideas from me;
 IL2: My boss is always on the lookout for ways to make things run more smoothly at work;
 IL3: When it comes to achieving the objectives, I have set for myself, my supervisor is willing to
discuss them with me;
 IL4: If you have any concerns, you may talk to my supervisor;
 IL5: As a member of this team, my supervisor is a constant “presence” who is always ready to help;
 IL6: I may speak with my supervisor about any work-related issues I’m having;
 IL7: My supervisor is eager to hear what I have to say and will do so;
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 IL8: My supervisor encourages me to seek his/her advice on developing concerns;

 IL9: My supervisor is open to addressing these topics with me.
 Diversity at workplace:
 DIV1: This company’s leadership promotes a diverse workforce;
 DIV2: Management’s actions illustrate that diversity is vital;
 DIV3: When it comes to increasing the number of people of color in its workforce, one business is
serious about doing so;
 DIV4: This organization promotes a work environment where people are free to be who they are;
DIV5: This organization recognizes and appreciates the uniqueness of each employee;
 DIV6: Employees are treated decently by the company’s management;
 DIV7: Employees at this organization are tolerant of others with diverse origins, views, and
experiences than they are;
 DIV8: There are rules or processes in place that promote a diverse and inclusive workplace.
 Innovative behavior items:
 IB1: Generating fresh approaches to vexing problems;
 IB2: Seeking for better ways to do your job;
 IB3: Inventing new ways to solve issues;
 IB4: Securing the backing of others for new ideas;
 IB5: Securing support for new concepts;
 IB6: Enthusing key people of the organization on new ideas;
 IB7: Making creative ideas into practical applications;
 IB8: Systematically bringing new ideas into the workplace;
 IB9: Determining the usefulness of new concepts.
For the assessment of the structure of factors of observed variables confirmatory factor analysis was
executed in this study, and the association has been observed between the observed variables and the latent
variables. Here in the Table 2, this is observed that IL7 and IL8 are the most significant indicator of inclusive
leadership whereas IL1 and IL5 Were found most insignificant.
For workplace diversity DIV2, DIV3, DIV4, DIV6 were found most significant as their value was more
than 0.7 DIV1, DIV5, and DIV7 were also considered significant as their value was also more than 0.6,
workplace diversity items were found significant with workplace diversity.
For innovation at the workplace IB1, IB4, IB5, and IB6 were found most significant as their estimated
value was more than 0.06 the items of innovation were found most significant among all the three factors. IB8
was observed least estimation value, still, it was more than 0.07.

7. Factor estimates
In Table 3, the Estimate value of Workplace Diversity (0.736) shows a strong association with inclusive
leadership, which indicates that inclusive leadership encourages workplace diversity, contrary to workplace
diversity, Innovation estimation value shows that leadership and innovation do not share strong association,
where it is observed that innovation may be affected by some other factors rather inclusive leadership.
Workforce diversity also low degree of impact on innovation as its estimation value is 0.289 only. Hence this
can be concluded that inclusive leadership is a more significant and deciding factor for innovation at the
workplace rather diversity.

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 Environment and Social Psychology | doi: 10.54517/esp.v9i1.1721

Table 3. Test of covariance.

Variable Estimate SE Z p Standard estimate
Inclusive leadership 1 - - - -
Workplace diversity 0.736 0.037 19.88 < 0.001 0.736
Innovation 0.303 0.0688 4.4 < 0.001 0.303
Workplace diversity 1 - - - -
Innovation 0.289 0.0683 4.24 < 0.001 0.289
Innovation 1 - - - -

As mentioned in Table 4, the R-value of 0.309 shows a non-significant or low degree of correlation
between the predicator i.e., inclusive leadership and diversity and, their impact on dependent variable i.e.,
innovation. An R2 value of 0.0955 shows that inclusive leadership and diversity are the factors that impact the
innovation at the workplace by 9% only and, there are other factors, other than two, that play important role in
the innovation culture within the organization.

Table 4. Linear regression.

S. No Mode R²
1 0.309 0.0955

In Table 5, the model coefficients of innovation, which is the dependent variable and predicated by two
variables inclusive leadership and diversity, researchers observed that in comparison to diversity, inclusive
leadership is significant and has a greater degree of impact on innovative work culture in the organization. If
inclusive leadership is to be promoted in the organization it would promote the work culture by 0.311 in the
organization, whereas the diversity will help innovation by 0.173.

Table 5. Model coefficients—Innovation.

Predictor Estimate SE t p
Intercept 17.414 3.839 4.54 < 0.001
Inclusive leadership 0.311 0.142 2.18 0.03
Diversity 0.173 0.118 1.47 0.142

As mentioned in Table 6, the R-value of 0.675 shows a significant or positive degree of correlation
between the predicative, inclusive leadership, and its impact on dependent variable i.e., Diversity. An R2 value
of 0.455 shows it impacts the diversity at the workplace by 45% only and there are other factors other than
inclusive leadership that may impact diversity.

Table 6. Model fit measures.

S. No Mode R²
1 0.675 0.455

Table 7 states that if inclusive leadership is to be promoted in the organizational culture, it encourages
the idea of diverse work culture in the organization, the estimated value of Inclusive leadership is to be
promoted by 1, it would enhance the diversity by 0.816, p-value (< 0.001) was also found significant.

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 Environment and Social Psychology | doi: 10.54517/esp.v9i1.1721

Table 7. Model coefficients—Diversity.

Predictor Estimate SE t p
Intercept 5.509 2.2854 2.41 0.017
Inclusive leadership 0.816 0.0634 12.87 < 0.001

Figure 2. Estimated research framework.

For the assessment of the structure of factors of observed variables confirmatory factor analysis was
executed in this study, and the association has been observed between the observed variables and the latent
variables. Here in the above Figure 2, it is observed that IL7 and IL8 are the most significant indicator of
inclusive leadership whereas IL1 and IL5 Were found most insignificant.
For workplace diversity DIV2, DIV3, DIV4, DIV6 were found most significant as their value was more
than 0.7, infect DIV1, DIV5, and DIV7 were also considered significant as their value was also more than 0.6,
workplace diversity items were found significant with workplace diversity.
For innovation at the workplace IB1, IB4, IB5, and IB6 were found most significant as their estimated
value was more than 0.06 the items of innovation were found most significant among all the three factors. IB8
was observed least estimation value, still, it was more than 0.07.

8. Conclusion
These studies were designed to find out how inclusive leadership encourages employees’ innovative
behaviors and ensures diversity at the workplace, and the researcher found a link among inclusive leadership
and the innovative behaviors of employees, moreover impact of diversity was also observed on innovation at
the workplace. Employees felt more appreciated and cared for by the business when executives demonstrated
greater inclusion in their new ideas, technology, and procedures. As a result, they boosted their creative
behavior. Researchers observed that in comparison to diversity, inclusive leadership is significant and has a
greater degree of impact on innovative work culture in the organization, apart from this also encourages the

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 Environment and Social Psychology | doi: 10.54517/esp.v9i1.1721

idea of diverse work culture in the organization. Workforce diversity also has a low degree of impact on
innovation. Hence this can be concluded that inclusive leadership is a more significant and deciding factor for
innovation at the workplace rather diversity.
A varied and inclusive workforce is essential for fostering innovation, igniting creativity, and influencing
company strategy and goals. Diverse viewpoints encourage creative problem solving and the development of
novel goods, services, and solutions to existing problems. Having a diverse staff is no longer seen as a separate
endeavor from the rest of a company’s activities; rather, it is seen as a way to attract top talent and attract new
consumers. While corporations’ attempts to promote diversity and inclusion are a given, organizations
nevertheless confront external and internal hurdles in putting these policies and processes in place.
Organizations are still grappling with unfavorable attitudes about diversity among their employees, while a
bumpy economic recovery has hampered many companies’ recruiting attempts. Future challenges include
aging workforces, decreasing supply of highly-skilled workers, and the difficulties of managing a
multigenerational workforce. However, as long as companies have their “eye on the prize” that is, keeping
diversity and inclusion initiatives at the top of their priority list, they will be able to weather these storms and
emerge ahead of the competition.

9. Implications
The present research provided several significant theoretical advances. First, the results indicated that
inclusive leadership had a significant impact on employee creative behavior, which was in line with previous
research showing the relevance of supervisory support in inventive behavior. This empirical study filled up
significant gaps in the literature on supportive drivers of employee innovation behavior. Inclusive leadership
was likely to be a catalyst for innovation.
The idea of inclusive leadership has gained a lot of attention in recent years; there is still no consensus on
the theoretical underpinnings that underpin it. The absence of practical and theoretical consensus on the
implementation of inclusive leadership put a limit on its effectiveness. In response to the belief that “the
inclusion construct and its underlying theoretical basis require further development” and that “much work
remains to advance theory related to our understanding of inclusive leadership” our research was one of the
few to examine the impact of inclusive leadership on diversity work culture and employee innovative behaviors.
Evidence showing the favorable effect of inclusive leadership on employee inventive behavior suggested
that inclusive leadership may play a key role in tackling creativity determinants. Promoting staff innovation
was vital to the organization’s long-term competitiveness and success. Our results showed how a company and
its leaders may enhance employee creative behavior via inclusive leadership, although individuals had unique
attributions and views of leadership styles.

Practical implications
In a dynamic environment, where the competitiveness of the business was based on the innovation of the
employees, it was critical to figure out how leaders might encourage their followers to innovate. The theoretical
model suggested in this study should help managers better understand how to encourage employees to be more
inventive. As previously said, creativity/innovation was dangerous since it required individuals to alter and
behave in unconventional ways, as well as bosses to tolerate and accept divergence from standard norms. Since
inclusive leadership has been shown to help workers to participate in more creative conduct, managers should
acquire inclusive leadership abilities to encourage employees to engage in more innovative activities. We
proposed that leadership training programs may assist leaders to understand the value of inclusivity and
openness, as well as provide them with the skills they need to support their staff.

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 Environment and Social Psychology | doi: 10.54517/esp.v9i1.1721

Finally, given people’s inherent propensity to retain their status quo, identifying characteristics that may
assist workers in overcoming this tendency and engaging in more inventive behavior was crucial. According
to our research, inclusive leadership is a driver of staff innovation.

10. Limitations and future research

There are a few drawbacks to this research that should be noted. While pointing out the study’s
shortcomings, we also offered suggestions for further research. The first constraint was the limited sample size
from a single company, which may limit the applicability and consequently the application of significant
connection findings. The present results may give conservative hypothesis testing estimates, implying possibly
bigger impacts in sectors with high levels of innovation (e.g., technology). Future research might improve our
understanding by repeating the findings of this study across a variety of sectors with bigger sample size.
Second, although alternative processes may exist, the present research only looked at one link among
inclusive leadership and employee creative behavior (e.g., psychological empowerment). Furthermore,
investigating boundary factors that may alter the link among inclusive leadership and innovation might be
beneficial. Other aspects of employee performance, such as task performance, might be studied in the future.

Author contributions
Conceptualization, LS; methodology, LS and PA; software, NK; validation, LS and NK; formal analysis,
NK; investigation, BPJ; resources, ST; data curation, LS; writing—original draft preparation, LS; writing—
review and editing, PA and ST; visualization, LS; supervision, PA; project administration, ST. All authors
have read and agreed to the published version of the manuscript.

Conflict of interest
The authors declare no conflict of interest.

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Appendix A
Questionnaire
Dear Respondent,
The purpose of this study is to collect vital information with regard to the prevalence of diversity
management and inclusive practices being adopted at workplace. Your humble cooperation in completing this
questionnaire is central to the accomplishment of the research exercise. We apprise that there is no right or
wrong answer key to these statements yet it all depends on your experiences and observations till date. Hence,
we request you to complete this set of questions while we assure that your responses will be kept confidential
and that the outcomes would be used for research purpose only.

(1) Inclusive leadership items

How far you agree or disagree with each of the following statements, please indicate by putting a tick
mark () in the appropriate column.

S. No Statements Strongly Disagree Neutral Agree Strongly

disagree agree
1 My boss is eager to hear fresh ideas from me.
2 My boss is always on the lookout for ways to make things run
more smoothly at work.
3 When it comes to achieving the objectives, I have set for myself;
my supervisor is willing to discuss them with me.
4 If you have any concerns, you may talk to my supervisor.
5 As a member of this team, my supervisor is a constant
“presence” who is always ready to help.
6 I may speak with my supervisor about any work-related issues
I’m having.
7 My supervisor is eager to hear what I have to say and will do so.
8 My supervisor encourages me to seek his/her advice on
developing concerns.
9 My supervisor is open to addressing these topics with me.

(2) Diversity at workplace

S. No Statements Strongly Disagree Neutral Agree Strongly
disagree agree
1 This company’s leadership promotes a diverse workforce.
2 Management’s actions illustrate that diversity is vital.
3 When it comes to increasing the number of people of color in its
workforce, one business is serious about doing so.
4 This organization promotes a work environment where people are
free to be who they are.
5 This organization recognizes and appreciates the uniqueness of each
employee.
6 Employees are treated decently by the company’s management.
7 Employees at this organization are tolerant of others with diverse
origins, views, and experiences than they are.
8 There are rules or processes in place that promote a diverse and
inclusive workplace.

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 Environment and Social Psychology | doi: 10.54517/esp.v9i1.1721

(3) Innovative behavior items

S. No Statements Strongly Disagree Neutral Agree Strongly
disagree agree
1 Generating fresh approaches to vexing problem.
2 Seeking for better ways to do your job.
3 Inventing new ways to solve issues.
4 Securing the backing of others for new ideas.
5 Securing support for new concepts.
6 Enthusing key people of the organization on new ideas.
7 Making creative ideas into practical applications.
8 Systematically bringing new ideas into the workplace.
9 Determining the usefulness of new concepts.

(4) About yourself

Name of the organization (optional):
Your designation:
A) The respondent’s profile
Age Educational qualification of the investor Gender
25–30 Graduate Male
31–35 Post Graduate Female
36–40 Professional qualifications/doctoral -

B) Job characteristics and dynamics

In this job role/position since How you reached this Total work experience Position at time of joining
last? position across hierarchy?
0–1 year Internal promotion 3–5 Years Probationary/Trainee
2–4 years Joining from other departments 5–10 Years Clerk/Junior
More than 5 years External joining 10–15 Years Manager/Assistant
Organizations changed Pattern of acquiring the Average work hours devoted Ethnic/Racial groups you feel
before joining this one current hierarchal position per week are co-working here
One Delay of more than five years Less than 50 One–Two
Two Delay of two-three years Between 50–70 Two–Five
Three No delay at all Near about 100 More than five

C) The employer’s profile

Location Nature of industry/sector Number of women in corporate board
Gurugram Banking None
Faridabad Health One
Noida ICT Two
New Delhi FMCG -
- Apparel/Fashion -
- E-Commerce -

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