EXPLORING THE IMPACT OF INCLUSION (DIVERSITY) CLIMATE, EMPLOYEE INVOLVEMENT, AND INCENTIVES ON EMPLOYEE PERFORMANCE IN THE CHEMICAL SECTOR IN PAKISTAN

Abstract

Manufacturing firms in emerging economies often operate under various constraints, yet there is limited context-specific evidence on which workplace levers most effectively strengthen employees’ readiness to perform. Addressing this gap in Pakistan’s chemical sector, this study draws on the ability-motivation-opportunity (AMO) framework to examine whether inclusion (diversity) climate, employee involvement, and incentive effectiveness predict performance enablement beliefs. Using cross-sectional survey data and employing ordinary least squares regression, results indicate that employee involvement and incentive effectiveness are robust positive predictors of performance enablement beliefs, whereas inclusion climate does not retain a unique association once the other levers are modeled concurrently. The study contributes to AMO-aligned mechanisms by identifying actionable levers that managers can strengthen through structured participation routines and credible incentive systems, while embedding inclusion initiatives into daily practices. Future work can build on this foundation by applying longitudinal and multi-source designs, refining and validating AMO-aligned measures across subgroups, and testing when inclusion climate becomes more influential as it is translated into concrete involvement practices.