Abstract

Objective: This study aims to explore the influence of employee psychological empowerment, job satisfaction, and organizational commitment on organizational innovation within the context of the Habib Bank in Karachi City.

Methodology: The research adopts a descriptive-correlational approach and utilizes survey methodology. The study population consists of all employees of Habib Bank in Karachi City, with a sample size of 244 participants selected. Questionnaires assessing psychological empowerment, job satisfaction, organizational commitment, and organizational innovation are administered to collect data. Descriptive and inferential statistical analyses, including structural equation modeling, are employed to analyze the gathered data.

Findings: The findings of the study validate the conceptual model proposed. Notably, it is observed that psychological empowerment has both direct and indirect effects on organizational innovation. Furthermore, the indirect effect, mediated through employee job satisfaction and organizational commitment, is found to be significantly greater than the direct effect.

Implications: These findings provide insights for organizational leaders and policymakers regarding the factors influencing organizational innovation. Understanding the interplay between psychological empowerment, job satisfaction, and organizational commitment can inform strategies aimed at fostering a culture of innovation within the organization.

Conclusion: The study underscores the importance of employee psychological empowerment, job satisfaction, and organizational commitment in driving organizational innovation. It highlights the need for organizations to prioritize these factors in their human resource management practices to enhance innovation capabilities and maintain competitive advantage.