The Impact of Store-Unit–Community Racial Diversity Congruence on Store-Unit Sales Performance:

We introduce the racial diversity congruence concept to examine how matching levels of racial diversity between store-unit employees and community members relate to store-unit sales performance. In a field study of 220 retail store units, we found evidence supporting social identity theory and information-based perspectives on the racial diversity congruence–sales performance relationship. Specifically, results show that a match between store-unit racial diversity and community racial diversity positively related to store-unit sales performance. In addition, superior store-unit performance emerged when store units and communities had congruent levels of diversity at high (i.e., high-high racial diversity congruence) rather than low (i.e., low-low racial diversity congruence) levels. Moreover, we found asymmetrical incongruence effects whereby racially diverse store units in less-diverse communities outperformed store units with lower levels of racial diversity operating in diverse communities. The implica...