PurposeThis investigation endeavors to explore the impact of Psychological Capital (PsyCap) on organizational citizenship behavior (OCB) within the confines of Pakistan's information technology (IT) sector. It leverages the concepts of team engagement (TE) as a mediating variable and team cohesion (TC) as a moderating variable to investigate the dynamics between these constructs. This study aims to enrich the existing body of literature by offering sophisticated insights into the critical roles played by PsyCap in promoting OCB, viewed through the prisms of TE and TC.Design/methodology/approachThis scholarly investigation employed a quantitative methodology complemented by a cross-sectional survey encompassing 243 active participants within the IT sector. The research methodology incorporated confirmatory factor analysis and structural equation modeling to rigorously test hypotheses concerning OCB's pivotal role in Pakistan's IT industry. The analytical process was greatly enhanced through the application of SPSS software, version 27, and AMOS software, version 23, enabling the construction of a comprehensive structural equation model alongside detailed path analysis. The study adopted a time-lagged data collection strategy to address and minimize the potential distortions introduced by common method bias.FindingsThe investigation outcomes delineate a significant association between the fulfillment of fundamental human necessities and the augmentation of PsyCap, alongside an increase in self-autonomous actions. This, in turn, fosters an improvement in OCB. The discourse within the manuscript accentuates the pivotal role of managerial practices and the work environment in catering to basic needs, thereby facilitating the cultivation of PsyCap resources. Furthermore, the research elucidates that TE serves as a pivotal mediating factor that bridges PsyCap and OCB, highlighting its complementary role in enhancing organizational behavior.Originality/valueThe current inquiry significantly contributes to the existing scholarly discourse by elucidating the dynamics between PsyCap, TE, TC and OCB. Moreover, this study explores TE's mediating role specifically within the context of Pakistan's IT sector. By employing the theoretical framework of self-determination theory, this investigation not only deepens the theoretical underpinnings but also furnishes pragmatic insights for IT organizations, thereby marking a notable advancement in the realm of organizational behavior and psychology.