Abstract:
Owing to globalization and dynamic business environment, organizations quest for sustaining
their business performance by crafting various compelling strategies. Recently, employee
engagement and well-being have gained dramatic popularity among managers and
practitioners as a salient strategy to augment firm performance. Notably, the research studies
on the nexus among employee engagement, employee well-being and firm performance are
still nascent, and past findings are obscure. Moreover, the studies that have been conducted in
developed countries cannot be generalisable to the developing countries since the variables
are subject to country culture specific nature. To fill the void left by the earlier studies, the
present study is designed to investigate the moderating role of employee well-being on the
relationship between employee engagement and firm performance based on the sampled from
Sri Lankan apparel industry. Using the convenience sampling technique, data were marshalled
through a self-reported questionnaire from 177 employees working in the apparel industry in
Sri Lanka. The data were analyzed using SmartPLS. The study shows a significant positive
relationship between employee engagement and firm performance. The study further reveals
a moderating effect of employee well-being on the relationship between employee
engagement and firm performance”. The study contributed to the fronters of extant HRM
literature and provided many useful practical implications that have been discussed at the end
of the paper. Importantly, the present study adds to the evolving debate on the critical role of
employee engagement in enhancing firm performance through employee well-being.
