Due to globalisation and the dynamic

business environment, organisations quest to

improve their business performance by crafting

various compelling strategies. Recently,

employee engagement and well-being have

gained dramatic popularity among managers

and practitioners as a salient strategy to augment

firm performance. Paradoxically, research on the

association between employee engagement,

employee well-being and firm performance is still

nascent, and past findings are obscure. Moreover,

most of the studies have been conducted in a

developed country context; thus, the results

obtained from developed countries cannot be

general sable to the developing country context.

Thus, the overriding purpose of this study is to

investigate the moderating role of employee wellbeing

in the relationship between employee

engagement and firm performance. Using a

purposive sampling technique, data were

marshaled through a self-reported questionnaire

from 177 employees working in the apparel

industries in Sri Lanka. The data were analyzed

using Smart PLS. The study showed a significant

positive relationship between employee

engagement and firm performance. In addition,

“the results reveal a moderating effect of employee

well-being on the relationship between employee

engagement and firm performance”. The study

contributed to the frontiers of extant HRM

literature in many ways discussed at the end of

the paper. Notably, this study adds to the evolving

debate on the critical role of employee

engagement in enhancing firm performance

through employee well-being.