Organizational Innovation and Managerial Burnout: Implications for Well-Being and Social Sustainability in a Transition Economy

This study explores the relationship between organizational innovation and managerial burnout among middle managers in Serbia, a country undergoing socioeconomic transition. Data were collected from 406 managers using a standardized questionnaire and analyzed through multiple and hierarchical regression analyses. The results show that administrative innovations significantly reduce burnout, whereas product and process innovations do not exhibit a statistically significant effect. However, the impact of innovation is shaped by the organizational context, particularly by leadership style, organizational culture, and the quality of the leader–member (LMX) relationship. Transformational leadership, intellectual stimulation, and high-quality LMX reduce the psychological strain associated with innovation, while punitive management practices and high power distance increase burnout risk. Gender and sectoral differences were also identified, indicating that women respond more positively to innovations, especially in public and production organizations. The study highlights that the relationship between innovation, leadership, and psychological well-being demonstrates how innovation can function as an organizational and social resource rather than a stressor when it is implemented in a culture of dialogue, trust, and psychological safety. The findings contribute to understanding how the dynamics of innovation affect not only individual well-being, but also the broader social sustainability of organizations operating in transition economies.