Fostering Diversity, Equity and Inclusion: The crucial role of meritocracy and psychological empowerment on employee perceptions of innovation

Diversity, equity, and inclusion (DEI) have assumed a central point in the current debate. Despite the policymaker's growing attention to the theme, studies on individual perceptions are few, and even fewer are the ones related to innovation. To fill the gap in the literature, we conducted a cross-sectional survey across healthcare organizations, collecting 12.839 public healthcare professionals' observations. We shed light on the relationship between different subgroups' perceptions based on demographic characteristics and the perception of organizations enhancing technological and organizational innovation. We delve into two key factors, meritocracy and psychological employee empowerment, as indicators of equity and inclusion. Our findings highlight that employees who perceive empowerment and involvement within a meritocratic setting tend to be less critical of enhancing organizational and technological innovation. Moreover, evidence suggests that individuals holding unfavorable opinions about key organizational factors, such as bureaucracy and planning, are likely to harbor reservations regarding organizational and technological innovation, causing the so-called ripple effect. This study adds valuable insights to the literature because it enhances our understanding of employee perceptions and provides crucial insights for policymakers and employers on managing the employee’s perception’s ripple effect, fostering diversity, equity, and inclusion.