The Impact of Cultural Diversity on Team Performance and Knowledge Sharing in a Multinational Industrial Organization within Sweden

ABSTRACT Date: 2026.01.15 Level: Bachelor thesis in Business Administration, 15 cr Institution: School of Business, Society and Engineering, Mälardalen University Authors: Darshana Hewa Dewage, Subhani Warahena Liyanage, Zolaikha Zawarali Title: The Impact of Cultural Diversity on Team Performance and Knowledge Sharing in a Multinational Industrial Organization within Sweden Supervisor: Aziza Al Ghafri Keywords: Cultural diversity, team performance, multinational teams, knowledge sharing, organizational support, social grouping Research questions: What impact does cultural diversity have on team performance and knowledge sharing in a multinational industrial organization in Sweden? Purpose: This research aims to examine the role of cultural diversity on how ABC’s Swedish teams perform and share knowledge using the guidelines of Hofstede’s cultural dimensions and knowledge-based theory. Method: The research is a single case study which conducts a qualitative methodology with ten semi-structured interviews including five employees and five managers. Research has an abductive thematic approach. Conclusion: On the one hand, cultural diversity causes a number of challenges. On the other hand, diversity results in adding value through additional viewpoints, increased creativity, and complex multi-perspective and innovative problem-solving frameworks especially for demanding tasks. Cultural diversity offers complex challenges and opportunities for teams. With the right structure and approach, organizations can manage these challenges and harness diversity as a source of power and competitive edge in the context of globalization.