The Effect of Holistic Organizational Climate on Creativity through Psychological Safety

Abstract

The aim of this study was to investigate the effect of holistic organizational climate on employee creativity with the mediating role of psychological safety in service and knowledge-based organizations in Tehran. This research is applied in terms of purpose and, in terms of execution method, is a descriptive survey of correlational type using a structural equation modeling approach. The statistical population consisted of all employees of service and knowledge-based organizations in Tehran, from which 100 individuals were selected using proportional stratified random sampling. Data were collected using standardized questionnaires: the Holistic Organizational Climate Questionnaire (24 items), Edmondson’s Psychological Safety Questionnaire (7 items), and Zhou and George’s Creativity Questionnaire (13 items). Data were analyzed using SmartPLS software version 4 with the partial least squares approach. Findings showed that holistic organizational climate had a direct positive and significant effect on psychological safety (β=0.683, p<0.001) and on employee creativity (β=0.305, p<0.001). Additionally, psychological safety had a direct positive and significant effect on employee creativity (β=0.541, p<0.001). Results for the indirect effect indicated that psychological safety plays a partial mediating role in the relationship between holistic organizational climate and employee creativity (VAF=54.7%). Model fit indices (SRMR=0.068) and predictive relevance (Q² > 0) indicated good and favorable model fit. Based on the findings, organizations can foster employee creativity by simultaneously strengthening the supportive, participative, learning, and ethical dimensions of organizational climate, as well as by establishing psychological safety.