Cultural diversity and operational performance: entrepreneurial orientation as a mediator

Purpose The purpose of this paper is to test the mediating role of entrepreneurial orientation in the nexus between cultural diversity (CD) and firm operational performance (OP). Design/methodology/approach The population of the current study is foreign industrial firms listed in the tax directorate of the Kurdistan region of Iraq (KRI). A stratified random sampling technique was applied to select 136 firms in KRI, with a response rate of 57 per cent. Smart-PLS was used to examine the hypothesised relationships in the proposed framework. Findings The results indicate that CD is significantly related to a firm's OP. Entrepreneurial orientation (EO) is, in turn, significantly related to a firm's OP. Furthermore, the results provide evidence that EO plays a mediating role in the nexus between CD and a firm's OP. Originality/value The study highlights the importance of CD and EO in supporting a firm's OP. In addition, the findings will provide scholars and managers a deeper understanding of the role of EO as a mediator through which CD enhances a firm's OP.