Job Satisfaction, Flexible Work Arrangements and Innovative Work Behavior in Serbian SMEs

The external and internal challenges have been compelling organizations to adapt their business strategies to enhance their market positioning. One effective approach for organizations to improve their market position and positively influence employees' attitudes and behaviors is by implementing various forms of flexible work arrangements. This research investigates the direct impact of flexible work arrangements on job satisfaction and innovative work behavior and examines the mediating role of job satisfaction in this relationship. The study has been conducted on a sample of 109 highly educated managers in private SMEs in the Republic of Serbia. The theoretical framework is built upon existing scientific research, while the empirical section employs the PLS-SEM method. The findings reveal positive direct effects of flexible work arrangements on job satisfaction and innovative work behavior, with job satisfaction serving as a mediator in the relationship between flexible work arrangements and innovative work behavior. This mediation is found to be partial. Future research recommendations include the analysis of a larger cohort of managers, exploring the effects within larger organizations, and investigating their impact on other employee attitudes and behaviors.