Turning Diversity into Performance: The Roles of Work Environment and Organisational Communication in Emerging-Economy Manufacturing

Abstract

The rapid growth of the manufacturing industry in West Java has positioned the region as a strategic hub for international investment. In the context of globalization, workforce diversity across nationality, ethnicity, generation, and cultural background, has become a critical factor influencing organizational sustainability. Such diversity shapes the work environment, organisational communication, and ultimately employee performance, which are central to sustaining competitiveness in industrial regions. This study develops a conceptual model to examine the effects of workforce diversity, work environment, and organisational communication on employee performance in West Java’s manufacturing sector. A quantitative approach was applied using Structural Equation Modeling (SEM-PLS) with 385 respondents from various manufacturing companies. The findings reveal that workforce diversity significantly enhances employee performance (β = 0.585; P < 0.001), as do the work environment (β = 0.124; P = 0.020) and organisational communication (β = 0.150; P < 0.001). The model’s R2 value of 0.538 indicates that the independent variables explain 53.8% of the variance in employee performance. These results underscore the importance of inclusive diversity management, supportive workplace environments, and effective cross-cultural communication for advancing sustainable industrial development. From a practical perspective, companies are encouraged to adopt inclusive policies, improve workplace quality, and strengthen technology-enabled communication to foster long-term sustainability and enhance the global competitiveness of manufacturing industries in emerging regions.