Innovating to lead: impact of organizational socialization on innovative work behavior in fintech companies mediated by organization-based self-esteem

The aims of this research are (1) to examine the direct effects of organizational socialization (OS)factors (Training (TR), understanding (UN), coworker support (CWS), and future prospects(FP)) on employees’ innovative work behavior (IWB) and (2) to evaluate the mediating effect of organization-based self-esteem (OBSE) on the relationships between organizational socialization factors and innovative work behavior. Using a quantitative cross-sectional research design, data were obtained from 216 usable questionnaires collected through snowball and convenience sampling from employees working in the financial technology (FinTech) sector in Saudi Arabia. The collected data were analyzed using Mplus version 8 software, and structural equation modeling (SEM) was applied as a statistical technique. The results indicated that the direct relationships between OS factors and employee innovative behavior were not significant. In contrast, the full mediating effect of OBSE on the relationships among the three OS factors and employee innovative work was supported. These findings suggest that the feeling of OBSE from employees’ perspective is important for enhancing the positive impact of OS factors, in particular, UN, CWS, and FP, on IWB. The findings also highlight the need to develop a work environment in which employees feel valued, competent, and essential to the organization’s success. Based on the above findings, this study suggests that enhancing OBSE is essential for strengthening the positive impact of OS factors on IWB. It is recommended that managers establish a climate in which employees feel valued, competent, and essential to the organization's success. These strategies will increase employees’ feelings of OBSE, which will in turn contribute positively to IWB.