The Mediating Effect of Organizational Innovation on Employee Performance within Public Sector Organizations in Dubai

Abstract

This study aimed to empirically explore the mediating impact of organizational innovation on employee performance in Dubai government organizations. Theoretical evidence denoted that organizational innovation had a mediating impact on employee performance through augmenting the effects of other impactful constructs for instance transformational leadership and job happiness. The research in conducting the study, considered the relationships between the effects of different constructs on employee performance in public sector organizations in the government of Dubai. Apart from organizational innovation, the other constructs whose effects on employee performance in the organization were investigated in the study included transformational leadership and job happiness. The research noted that there existed very few studies that empirically examined the mediating role of organizational innovation on employee performance in the workplace. Building on preliminary evidence of literature and experience, this research postulated that organizational innovation had a mediating impact on employee performance in the organization through augmenting the effect of job happiness and transformational leadership on the same. The study employed structural equations modeling via PLS to analyse 682 valid questionnaire responses from 28 Government of Dubai Organizations. The findings indicated that organizational innovation played a mediating role in the relationship between transformational leadership and job happiness and the performance of employees in the workplace. The data used in this study was thoroughly purified through multiple steps to ascertain that it did not bear any outliers. On arriving at the hypothesis testing, the data remaining did not indicate any multicollinearity or overlapping effect. The construct of organizational innovation showed resoundingly strong mediating influence on employee performance in comparison with other constructs. Research noted that, while transformational leadership and job happiness played a stronger direct role in impacting the performance of employees, it was essential that the leadership of the organization adopt an innovation-oriented approach to leadership in order to have better impact on performance among the employees.