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Abstract This study examined the interactive effects of workplace diversity and employee involvement on organizational innovation. Using a sample of 182 large Canadian organizations, we found a three‐way interaction between level of employee involvement, variation in involvement, and racioethnic diversity on innovation. In organizations with high levels of employee involvement, high variation in involvement was associated with higher involvement levels among racioethnic minorities, resulting in a stronger association between diversity and innovation. Furthermore, the association between White employee involvement and innovation was significantly more positive under the condition of high involvement among racioethnic minority group members. Thus, ensuring high levels of involvement among members of historically marginalized racioethnic groups enhances the innovation effects of employee empowerment systems. Copyright © 2010 John Wiley & Sons, Ltd.
Yang et al. (Mon,) studied this question.