Mediating Role of Employees’ Happiness on Corporate Social Responsibilities Practices and Innovativeness in the Malaysian Insurance Industry

Abstract

The purpose of the study is to examine the direct and indirect relationships of Internal Corporate Social Responsibilities (CSR) Practices on Innovativeness and through Employees’ Happiness in the Malaysian Insurance Sector. The past literature showed that there is limited study on employee innovativeness in the insurance sector which faced limited growth. The conceptual framework was derived from the previous model by Bibi et al. (2021) on Corporate Social Responsibility (CSR). The SMART PLS was used to analysed the questionnaires filled out by a sample of 175 respondents collected using snowball sampling technique in the insurance sector of Malaysia. This study found that all other aspects of employment stability, work environment, and work-life balance had a significant direct and mediating relationship with the innovative behaviour of employees, while skill development was insignificant in indirect relations. The findings indicate that organisations are lacking aspects of innovativeness in the environment, and certain aspects of happiness are considered by the employees, leading to innovativeness. The organization should cultivate a mindset among its employees that encourages them to prioritize their pleasure and happiness in order to generate innovative solutions for the organization. Peers in the organization need to create, feel, and enjoy happiness, as this will foster innovation and creativity.