Innovation and Employee Performance: Mediating Role of Psychological Well Being

Purpose: Today, the organizational innovation is considered as the most important factor to experience the increased productivity in organizations. Many previous studies focused on the innovation and its’ effectiveness for performance at different organizational levels. This study mainly focused on the relationship between organizational innovation and the employee performance. Organizational innovation comprises both creation of new and innovative ideas as well as their successful implementation. Another purpose of this study was to empirical test the mediating role of employee psychological wellbeing in the relationship of organizational innovation and employee performance. Design/Methodology/Approach: The convenient sampling methodology was used to collect the data. The researchers collected the data from 700 employees and their immediate supervisors. The data was collected using a self-administered questionnaire. Findings: The findings revealed that innovation has an impact on workers performance and their psychological well-being mediates the connection between the organizational innovation and performance of employees. Implications/Originality/Value: The proposed model was tested and validated through the empirical data, which is an important contribution of current study. These study findings are helpful for academicians, managers, and entrepreneurs.