Cultural Diversity and Performance of Cameroonian Companies

Abstract

The objective of this study is to highlight the effects of ethnic, linguistic, and religious diversity on business sustainability in Cameroon. To achieve this objective, the authors used data from a survey conducted in the cities of Douala and Yaoundé by the Laboratory for Research in Fundamental and Applied Economics (LAREFA) of the University of Dschang. Using a censored Tobit model, the following results were obtained: (1) Ethnic diversity and linguistic diversity each have a positive effect on the sustainability of Cameroonian companies. However, when the linguistic diversity index is too high, its effect becomes significantly negative. (2) Whatever its level, religious diversity has a negative effect on the sustainability of Cameroonian companies.