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Purpose

This study seeks to investigate the relationship between flexible work arrangements (FWAs) provided by organizations and employees’ creative performance. Integrating cognitive evaluation theory and social exchange theory, the study tests a moderated mediation model in which psychological ownership mediates, while mindfulness and work–family balance moderate the examined relationships.

Design/methodology/approach

The study employed a cross-sectional research design to examine the proposed model, utilizing data collected from 355 executives across the Indian knowledge industry. IBM SPSS, along with the Hayes’ PROCESS Module, was used to investigate the hypothesized relationships.

Findings

FWAs were positively related to creative performance, both directly and indirectly through psychological ownership. Furthermore, work-family balance and mindfulness were identified as significant moderators of these relationships.

Practical implications

While some organizations are reevaluating their flexible work arrangements, believing they reduce performance, the present study clears the air and confirms the positive association between FWAs and creative performance. Also, the mere availability of FWAs is positively associated with employees’ affect, which, in turn, is associated with increased psychological ownership. To maximize these benefits, organizations may adopt flexible work arrangements that reflect the diverse work–family balance needs of their workforce.

Originality/value

This study is among the limited body of research to investigate the relationship between creative performance and flexible work arrangements (FWAs). The findings underscore the mediating role of psychological ownership, reinforcing theoretical and empirical arguments regarding the positive organizational impacts of FWAs. Additionally, the moderating effects of work–family balance and mindfulness advance the existing literature by elucidating boundary conditions under which these relationships are strengthened, thereby contributing to the evolving discourse on workplace flexibility.

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