Navigating sustainable innovation: exploring the interplay between workplace happiness and the dynamics of leadership, empowerment and organizational culture in the context of green management and circular economy

Abstract

This study explores the impact of employee innovation on organizational success, focusing on influential leadership, suitable working environments, and autonomy. It highlights the role of workplace happiness, supportive or non-supportive colleagues, and job stress in fostering creativity. The study presents a model predicting innovative behavior in Karachi, Pakistan, bridging the gap between conceptual foundation and practical application. The study investigates the impact of workplace happiness, transformational leadership, psychological empowerment, and organizational culture on employee innovative behavior through Smart PLS. Survey data from 327 employees from Karachi hotels revealed that remodeling leadership, psychosomatic authorization, and firm culture stimulate creativity. Job anxiety also decelerates individual innovativeness. The PLS-SEM analysis reveals that transformational leadership, organizational culture, workplace happiness, and job stress significantly influence innovative behavior, accounting for 42% of the variance. The study examines the impact of remodeling leadership, psychosomatic authorization, and firm culture on employee contentment and innovative behavior. Transformational leadership is crucial for fostering innovation and creativity, while workplace happiness is essential for organizational success. Coworker support doesn't significantly influence innovative behavior, but job insecurity can lead to animosity and competition. Empowerment strategies don't significantly influence employee innovative behavior, but their success depends on corporate culture and implementation. Organizational culture significantly influences employee creativity, and job stress negatively impacts performance. The study's generalizability may be limited due to the hotel industry's inflated occupancy rates and staff availability issues, which may hinder data collection in diverse business contexts.