Driving Organisational Success: The Synergistic Effects of Positive Organisational Behaviour, Innovation, and Leadership on Employee Performance and Growth in the IT Sector

Abstract This study examines how innovation, Transformational Leadership (TL), and Positive Organisational Behaviour (POB) interact to improve Organisational Growth (OG) and Employee Performance Outcomes (EPO) in the Delhi NCR IT sector. Based on positive psychology, POB highlights psychological resources essential for creating an innovative and effective work environment, including resilience, optimism, hope, and self-efficacy. Using a multi-level approach, the study investigates the relationship between POB and EPO, using TL as a mediating component and innovation as a moderating variable. The study highlights the significance of encouraging positive psychological states in the workplace by demonstrating a substantial positive association between POB and EPO (β = 0.521, p < 0.001) using Structural Equation Modelling (SEM) on data gathered from 500 IT workers. This link is further strengthened by innovation (β = 0.277, p = 0.015), highlighting the importance of a flexible and innovative organisational culture. However, the POB-performance link is not significantly mediated by TL (β = 3.399, p = 0.435), indicating that other factors, including personal characteristics or business culture, might be more critical. The results show how important it is for businesses to put POB and innovation first to boost OG, EE, and performance, especially in fast-paced sectors like IT.