The Relationship Between Digital Transformation and Employees' Dual Innovation Behaviour: A Moderated‐Mediation Model

ABSTRACT Digital transformation (DT) is a key driver of enterprise innovation, yet its impact mechanism on employees' dual innovation behaviour remains unclear. Based on the cognitive theory of stress, this paper explores the relationship between DT and employees' dual innovation behaviour. Data from 60 leaders and 406 matched employees in China's Yangtze River Delta region are analysed. The results demonstrate that DT has a U‐shaped relationship with employees' breakthrough innovation behaviour and an inverted U‐shaped relationship with employees' incremental innovation behaviour. DT promotes employees' breakthrough innovation behaviour and inhibits employees' incremental innovation behaviour through approach job crafting, whereas it promotes employees' incremental innovation behaviour and hinders employees' breakthrough innovation behaviour through avoidance job crafting. Moreover, perceived overqualification moderates the relationship between DT and approach/avoidance job crafting, and it further moderates the mediating effects of approach/avoidance job crafting in the relationship between DT and employees' dual innovation behaviour.