Creativity at work, well-being at heart: Contextual insights from Pakistani entrepreneurial firms

This study explores the intricate dynamics between organizational factors and employee well-being within the unique cultural and economic landscape of an entrepreneurial IT firm in Pakistan. Recognizing that employee well-being is not solely the product of personal disposition but is significantly shaped by the organizational environment, this research aimed to examine how workplace elements such as organizational climate, team dynamics, leadership quality, and the availability or strain of work-related resources influence employees’ psychological well-being. Importantly, the study positions perceived unit-level creativity as a central mediating mechanism through which these factors exert their influence. Grounded in the belief that creative environments empower individuals and instill a sense of purpose, autonomy, and belonging, the study proposes that fostering creativity within organizations may yield broader emotional and psychological benefits for employees. Data were collected from a purposive sample of 103 employees at an entrepreneurial IT firm in Pakistan. These firms are often characterized by resource constraints, rapid innovation cycles, and informal structures, making them fertile ground for exploring the intersection of creativity and well-being. The research employed both LISREL structural equation modeling and regression analyses to rigorously test the proposed mediation model. The findings revealed that when firms cultivate climates and leadership styles conducive to creativity, they simultaneously enhance employees’ well-being, thereby offering a dual advantage for organizational performance and human sustainability. The study contributes to the literature by offering empirical evidence from a non-Western, entrepreneurial context, highlighting the universality and contextual relevance of creativity as a pathway to employee flourishing. The paper concludes with a discussion of its methodological limitations, such as a cross-sectional design and limited generalizability due to sample size. It provides avenues for future research, particularly longitudinal studies and comparative analyses across different organizational types and cultures.