The Double-Edged Sword of the Effects of Innovative Work Behaviour on Job Performance and Employee Well-Being: The Moderating Role of Innovation Climate

Abstract

Employees' innovative work behaviour (IWB) is recognised as a valuable personal resource for organisations due to its positive impact on job performance, but it may also place significant demands on employees. The implications of IWB for employee well-being (i.e., work engagement and work exhaustion) remain unclear, which impedes a comprehensive understanding of both its positive and negative effects. This study addresses that gap by analysing the relationship between IWB, job performance and employee well-being, while also examining the role of the climate for innovation as an organisational resource that can modify the effects of IWB on job performance and employee well-being. Matched data on 476 workers across 146 R&D departments from technology-based companies were analysed to examine the proposed relationships using multilevel structural equation modelling. The findings contribute to the ongoing debate about the double-edged nature of IWB, highlighting its benefits, namely, enhanced job performance and increased work engagement, alongside potential drawbacks, particularly a heightened risk of work exhaustion. While a climate for innovation can enhance the positive effects of IWB, especially engagement, it only marginally mitigates its adverse impact on well-being. These results underscore the importance of balancing demands for innovation with adequate organisational support, offering valuable insights for organisations seeking to foster performance without compromising employee well-being.