A Study on the Relationship between Knowledge Diversity, Locus of Control, Collective Locus of Control and Employee Performance in Manufacturing Companies...

Abstract

The contemporary manufacturing environment increasingly depends on collaborative work systems, knowledge integration, and collective problem-solving capabilities. In such environments, employee performance is not merely influenced by individual psychological traits but also by team-level cognitive orientations and diversity dynamics. This study examines the relationship between Individual Locus of Control (LOC), Collective Locus of Control (CLOC), and Knowledge Diversity measured through the Blau Index (BLAU) with employee performance in manufacturing organizations. The study further investigates the moderating role of knowledge diversity on the relationship between LOC, CLOC, and employee performance. The study is based on empirical data collected from 116 employees working in manufacturing organizations. Regression analysis was employed to examine the predictive relationships and interaction effects among the variables. The findings reveal that Collective Locus of Control and Knowledge Diversity significantly and positively influence employee performance. The interaction effect between CLOC and Knowledge Diversity was also found to be positive and statistically significant, indicating that knowledge-diverse teams strengthen the positive impact of collective locus of control on employee performance. Individual LOC demonstrated a statistically significant relationship with employee performance; however, the moderating effect of knowledge diversity on the LOC–performance relationship was not strongly supported. The study contributes to organizational behavior and human resource literature by introducing Collective Locus of Control as a relevant construct in team-oriented environments and by highlighting the strategic role of knowledge diversity in enhancing collaborative performance. The findings have practical implications for talent management, team composition, organizational design, and leadership development in manufacturing organizations..