Why Do Firms Fail to Engage Diversity? A Behavioral Strategy Perspective

The persistent failure of organizations to engage diversity—to employ a diverse workforce and fully realize its potential—is puzzling, as it creates labor-market inefficiencies untapped opportunities. Addressing this puzzle from behavioral strategy arbitrage perspective, paper argues that attractive opportunities tend be protected by strong social limits arbitrage. I outline four limits—cognizing, searching, reconfiguring, legitimizing (CSRL)—that deter firms sensing, seizing, integrating, justifying valuable diversity. case Moneyball is used illustrate how these CSRL prevented mispriced human resources being arbitraged away sooner, with implications for engaging cognitive diversity go beyond sports. This perspective describes why failures can persist prescribes strategists, contrarian theorists, framework formulating relevant problems solve in order search exploit