UNDERSTANDING HOW WORKPLACE HAPPINESS DRIVES INNOVATION: A BEHAVIORAL MEDIATION STUDY

Abstract

This study examines the influence of workplace happiness on organizational innovation performance, with a focus on the mediating roles of co-worker support, job stress, and innovative work behavior within the E-commerce industry of Karachi, Pakistan. In today’s competitive and globalized business environment, innovation is critical for organizational survival and growth. Using non-probability convenience sampling, data were collected from 325 employees, ranging from officers to senior managers, via a structured five-point Likert scale questionnaire. Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis revealed significant relationships among workplace happiness, co-worker support, job stress, innovative work behavior, and organizational innovation performance. Results indicate that co-worker support and innovative work behavior significantly mediate the relationship between workplace happiness and organizational innovation, whereas job stress does not exhibit a mediating effect. The study underscores the importance of fostering positive workplace emotions and supportive environments to enhance innovation, providing actionable insights for employee-centered strategies in Pakistan’s dynamic E-commerce sector.