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This study examines the development and impact of diversity and equality management systems (DEMS). A national sample of human resource managers from 155 Canadian firms responded to surveys about their firm's diversity and equality management (DEM) practices. Cluster analysis and latent class modeling identified three distinct approaches to DEM: classical disparity DEMS showing limited development of DEM‐related practices, institutional DEMS involving complex selection mechanisms and monitoring of employment statistics, and configurational DEMS linking diversity to business strategy. Hypothesis‐testing analyses indicated that both institutional and configurational DEMS were predicted by coverage by the Canadian employment equity program, federal contractor status, and the presence of a diversity expert on staff. Only configurational DEMS was predicted by inclusion of HRM in developing business strategy. Configurational DEMS positively predicted the employment of workers with disabilities and members of visible minority groups as well as ROA. These findings support the proposition based on strategic human resource management (SHRM) theory that DEM practices should be considered as bundles and that vertical linkage to strategy is important for DEM effectiveness. As such, SHRM theory explains how managers can structure strategic responses to institutional pressures that go beyond requirements to achieve strategic goals. © 2015 Wiley Periodicals, Inc.

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The resource-based view (RBV) has historically privileged the firm's internal resources and capabilities, often at the exclusion of its institutional context. In this paper, we introduce a culturally informed RBV that explains how cultural elements in the firm's institutional context shape the economic value associated with a firm's strategy. We posit that a firm's institutional context may create or destroy economic value. If the strategy inadvertently becomes associated with a social issue, it poses a risk for the firm. Firms that recognize the dynamic interplay between their resources and their institutional context in the face of social issues can engage in important cultural work, and thereby preserve their strategy's economic value.

Many organizations aim to increase the representation of women in their workforce, yet such efforts are often challenged by women’s relatively higher propensity to leave a job compared to men. Overlooked so far has been the temporal relationship between the representation of women and an organization’s collective employee turnover. We suggest that a substantive and rapid increase in the representation of women positively affects women and results in positive spillover effects for men, leading to a decrease in collective turnover. In our theoretical development, we explain how higher representation of women is associated with higher job embeddedness for all employees, which results in a subsequent decrease in collective employee turnover. We use latent curve model (LCM) analysis to examine a population of 499 organizations over a 14-year time span, and find support for our hypotheses. We suggest opportunities for future research and offer implications for practicing managers.