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Abstract
The study shows how retail employees' self-efficacy and hope predict their creativity, both directly and through the mediating role of positive affect. Five hundred and seven retail employees reported their hope, self-efficacy, and positive affect, their supervisors reporting their creativity. Three main findings are: (1) hope and self-efficacy predict creativity; (2) positive affect also predicts creativity; (3) positive affect partially mediates the relationship between both dimensions of positive psychological capital (self-efficacy and hope), and creativity. The study suggests that retail organizations may foster employees' creativity by encouraging conditions that cultivate employees' hope and self-efficacy, as well as their positive affect.