PurposeDrawing on broaden and build theory and the job demands–resources (JD–R) perspective, this study aims to test a moderated mediation model to explain the mediating effect of knowledge sharing behavior and the moderating role of perceived organizational obstruction on the dynamics of work engagement and creative effort.Design/methodology/approachData from 497 banking service employees constitute the sample of the study, and PROCESS macro in Statistical Package for the Social Sciences (SPSS) was used to test the hypotheses.FindingsThe positive impact of work engagement on creative effort is mediated by knowledge sharing behavior and the direct effect of work engagement on creative effort and the mediating effect of knowledge sharing behavior are contingent on perceived organizational obstruction. These effects were weaker for employees who experienced high perceived organizational obstruction.Originality/valueThis work unfolds how and when work engagement impacts the creative efforts of banking sector employees, highlighting when engaged work matters the most. It provides bidirectional richness at the intersection of knowledge management and creativity literature by focusing on the banking industry of a developing country.