Being Happy Pays Off! Positive Affect Shaping Employee Creativity in the Hospitality Industry Through the Lens of Broaden-and-Build Theory

Service organizations, particularly in the hospitality sector, are constantly under pressure to meet the ever-increasing and ever-changing expectations of the customers, in an innovative manner; making employee creativity a mainstream demand. Researchers and practitioners are pondering ways to frame employee creativity in the hospitality industry. This study aims to empirically investigate the role of positive affect in framing employee creativity in the hospitality industry. The broaden-and-build theory was employed to explain the framework under study, examining relations between affective, cognitive, psychological, and social factors that may shape employee creativity in the hospitality industry. Data was collected from 391 employees, working in hotels and restaurants in Pakistan, on a structured survey, by using a purposive sampling approach. The PLS-SEM approach was considered for data analysis. The findings show a positive relationship between positive affect and perspective-taking. The previously understudied relationship between perspective-taking and thriving at work was found significant. The relationship of perspective-taking with structural and relational social capital was also found significant. Supporting prior research, our results show that thriving at work and relational social capital lead to employee creativity. Interestingly, the relationship between structural social capital and employee creativity was insignificant. This study provides valuable insights for practitioners and hospitality managers to shape employee creativity by considering positive affect as a stimulator.