AN EMPIRICAL STUDY ON THE INFLUENCE OF FACTORS AND CHALLENGES ON ORGANIZATIONAL PERFORMANCE THROUGH DEI PRACTICES IN MANUFACTURING COMPANIES

Abstract

Diversity, Equity, and Inclusion (DEI) practices have increasingly moved from ethical considerations to strategic imperatives that drive innovation, retention, and competitiveness. In India’s manufacturing sector, however, adoption has been uneven due to cultural hierarchies, limited awareness, and resource constraints. This creates a research gap in understanding how enabling factors and persistent challenges influence organizational outcomes in industrial contexts. This study examines the influence of DEI practices on organizational performance in manufacturing companies in Coimbatore. A descriptive research design was adopted, with purposive sampling of 139 respondents directly engaged in manufacturing roles. Primary data were collected through a structured questionnaire consisting of 45 close-ended statements covering factors, challenges, and performance outcomes. Analytical tools included descriptive statistics, regression models, coefficient analysis, and residual diagnostics. The results reveal that leadership encouragement, senior management commitment, inclusive HR policies, and diversity-conscious recruitment enhance employee loyalty, creativity, and workplace reputation. However, barriers such as lack of resources, recruitment biases, insufficient monitoring, and limited prioritization exert a stronger negative impact than enabling factors. Regression findings confirmed that both factors and challenges together explained 40.9 percent of performance variance, with challenges carrying greater influence. The study suggests strengthening leadership accountability, improving DEI training and mentoring, and adopting locally relevant frameworks. Addressing systemic challenges alongside reinforcing enablers can help manufacturing firms achieve measurable improvements in innovation, employee satisfaction, and long-term sustainability.