Flexible work arrangements and innovative work behavior
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Date
2025
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Publisher
UMT,Lahore
Abstract
In the modern fast changing workplace, innovation is very important for the success of organizations, especially in the dynamic IT industry. Although the past studies have recognized the positive impacts of Flexible Work Arrangements (FWAs), little concern has been shown on how FWAs affect the ability of employees to innovate. Based on the Self-Determination Theory (SDT), this paper explains the effects of FWAs on Innovative Work Behavior (IWB), through the mediating effects of Individual Dynamic Capabilities (IDC). The research design presents and empirically establishes a conceptual model with three major constructs, that are FWAs, IDC, and IWB. A structured questionnaire was used to collect data among 260 employees working at different positions in IT companies, located in Lahore, Pakistan. This is confirmed by the analysis, performed in SPSS, Process Macros by Hayes, and Sobel Test, that there is a positive and significant correlation between FWAs and IWB. Furthermore, findings indicate that IDC partially mediates this connection indicating that FWAs not only enable employees to be more creative by providing them with autonomy but also dynamic capabilities in them, hence contributing to their innovative work behavior. This study contributes to the existing body of literature as it bridges the gap between flexible work arrangements and innovative work behavior by introducing Individual Dynamic Capabilities as a mediator in the relationship. It also has practical implications since it demonstrates how flexible work systems can foster innovation by developing personal capabilities. It will be helpful for organizational leaders interested in increasing the innovation and agility of the workforce in the flexible work context.