Role of Project-Based Work Environment on Employee Well-Being and Employee Performance

Purpose of this research is to gain insight into how variations in project work environment and employee psychological wellbeing influence performance outcomes in project-driven work settings. Additionally, this study has tested the mediating role of employee psychological wellbeing between project work environment and employee performance in a project-based organization. The model is tested empirically over a sample size adhered to the 10-times rule, with ten respondents per item in the 16-item questionnaire, ensuring a total of 160 respondents working in project-based organizations. Smart PLS 4 is used for applying partial least square-based structural equation modelling (SEM) and SPSS 24 software is used for descriptive data analysis. Findings from SEM revealed that altogether project work environment and employee psychological well-being explain a higher percentage of variance in employee performance and that there is a partial and significant mediating effect of psychological wellbeing between work environment and employee performance in a project-based organization. This research seeks to contribute valuable insights to both academia and organizational practitioners, for enhancing employee performance, and wellbeing in project-based organizations.