Digitalization and Organizational Climate for Well-Being in Small European Firms: Does Collaboration Matter?

Despite growing interest in organizational well-being, digitalization, and collaboration, their interrelations remain insufficiently explored in the context of small enterprises. This study addresses this critical gap by investigating how digitalization influences the organizational climate for well-being, and what role collaboration plays in this relationship in small European enterprises. Small European enterprises that employ 10 to 50 people are vital to regional development and economic growth. However, they face unique resource constraints that directly affect how these enterprises implement digital tools and foster a climate for employee well-being, making them a critical context for understanding these dynamics. Drawing on Warr’s vitamin model and some elements of the Job Demands–Resources framework, we conceptualize digitalization as a contextual resource that comprises data analytics, robotics, and computer and software use, and contributes to shaping organizational environment directly linked to employee well-being. Using data from the 2019 European Company Survey (N = 11,650), we analyze responses from managers of small enterprises, who are uniquely positioned to assess the enterprise-wide digitalization and collaborative practices. Employing multiple regression analysis, we find a positive relationship between digitalization and organizational climate for well-being. However, the influence of collaboration on this relationship is not uniformal and depends on the age and industry type an enterprise operates in. The study advances theoretical understanding of digitalization as a dynamic environmental factor and provides actionable insights for small enterprises aiming to foster organizational well-being through tailored digital strategies. It also underscores the need for longitudinal, context-sensitive organizational research.