In the milieu of Indian "Micro, Small, and Medium-Sized Enterprises" (MSME), this study travels around the complex relationships among “Employee Engagement” (EE), “Innovative Work Behavior” (IWB), “Emotional Intelligence” (EI), and “Perceived Organizational Support” (POS). The research has pinpointed a group of 300 workers from different MSMEs. It has been proven that employee engagement is at its highest when the organizational culture is creative. This research stresses the significance of emotional intelligence as an intermediary that promotes positive well-being effects more prominently among employees. Thus, these findings show that having a good attitude among the employees is the key to the success of Indian MSMEs. A cheerful workforce skilled in engagement, emotional intelligence, and innovation may be achieved by offering employees a fair and supportive environment that acknowledges their efforts. The inadequate training programs will eventually lead to the decline of the organization’s performance and competitiveness. The outcomes of the study will help MSME key persons make the right decisions to position their enterprises for development and survival in the highly competitive business environment