Relationship between employees' psychological capital and creativity: the mediating role of creative self-efficacy and positive affect

Multitude of recent developments like convergence of technology, rapid integration of artificial intelligence and machine learning in business processes, hyper competition, erosion of geographical boundaries and others, are forcing companies to put themselves on innovation fast track in order to remain sustainable and relevant. One of the keys towards developing in-house capability for innovation is the creative faculty of employees serving with an organisation. The present study is an attempt to understand how an organisation's employees' creativity is affected by interplay of their psychological capital, creative self-efficacy and positive affect. In this line, we hypothesised that the effect of psychological capital on employees' creativity is parallelly and partially mediated by creative self-efficacy and positive affect. The outcome suggests a significant partial mediation by creative self-efficacy and positive affect. The outcome is based on the cross-sectional study that was conducted on 392 employees working in insurance industry in Delhi/NCR, India.