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.