The reciprocal relationship between personal innovativeness and eudaimonic well-being: a simultaneous equations approach

Purpose In contemporary society, once basic survival-related needs are met, individuals strive for self-esteem and self-actualization (eudaimonic well-being) by realizing their potential, acquiring new knowledge, embracing risks and building confidence in their actions – traits associated with personal innovativeness. This study aims to examine the interrelationship between personal innovativeness and eudaimonic well-being at the individual level, arguing that these factors are simultaneously determined and should not be analyzed in isolation. Socio-demographic characteristics, including age, education level and social class, along with individual values and beliefs, such as self-expression and secularism, influence both innovativeness and eudaimonic well-being. Design/methodology/approach A simultaneous system of equations is used to analyze data from the World Values Survey, using a longitudinal sample of over 98,000 individuals from the fifth (2005–2009) and sixth (2010–2014) survey waves across multiple countries. Findings The findings indicate that personal innovativeness has a positive and significant effect on eudaimonic well-being, whereas the reverse effect follows an inverted U-shaped pattern. These insights contribute to a comprehensive understanding of innovation as both a driver and an outcome of personal growth, extending beyond traditional performance metrics to incorporate human flourishing as a fundamental element of innovation ecosystems. Originality/value The originality of the work lies in its unique approach to understanding the reciprocal relationship between eudaimonic well-being and innovativeness, a perspective that bridges two traditionally separate domains: positive psychology and innovation/entrepreneurship research.