Advantages

Cultural diversity offer a number of different competitive advantages that companies and organizations should be aware of. Some of the benefits are listed below.

Improving creativity
One of the positive effects of cultural diversity within a work setting is creativity. It has been documented that groups consisting of people with different cultural background tends to be more creative (Thomas, 2002). Creativity is perceived to be a very valuable asset in many companies, as creativity is one of the core sources of innovation. Being able to come up with new creative ideas is crucial to companies and organization engaged in rapidly changing markets or environments. Many theoretical models like for instance the optimized stage gate model provided by Cooper et al. in 2002 tends to take idea generation for granted. Most of the models use a light bulb to illustrate a new idea, but few of them actually consider where and how an idea is generated. The interaction between people with diverse cultural backgrounds seems to be one of the places were creativity and idea generation takes place. 

Better decision-making
Another performance enhancing effect of cultural diversity is higher-quality group decisions (Thomas, 2002). Having group members with different cultural backgrounds simply provides a more nuanced and sophisticated approach to decision making. People with different cultural backgrounds tend to look at certain issues from different perspectives. Illuminating different aspects of a particular problem or decision is often beneficial. This is especially true when decisions are associated with high potential risks. 

Global knowledge resources
Finally cultural diversity may be very task-relevant in some cases (Thomas, 2002). Many companies are currently experiencing the challenges of navigating in a global context. Having a high degree of cultural diversity within the employee community may provide specific knowledge about other cultures. One could for instance imagine a company drawing on these resources when entering a new geographical market.