Employee-driven Innovation Capability: The Role of Knowledge, Creativity, and Time Sufficiency

Abstract

Creativity and innovation are fascinating issues in the current literature because they play an essential role in organizational sustainability. Although previous studies found that knowledge and creativity are prominent predictors of innovation, the existing literature regarding the connection between these concepts remains insufficient. The present study investigates how individual creativity and an employee’s innovation capability are influenced by different types of knowledge (i.e., knowledge network, knowledge quality, and knowledge sharing). Furthermore, it attempts to amplify the grasp of the pathways and conditions to improve innovation capability by assessing the mediating role of an individual’s creativity and the moderating role of time sufficiency. The present study promoted structural equation modelling and cross-sectional design to test the hypotheses, utilizing data collection from 414 full-time employees at 69 SMEs in Indonesia. The findings revealed that creativity mediates the effects of knowledge quality and knowledge sharing on employees’ innovation capability. Furthermore, the influences of different types of knowledge on creativity and innovation capability are not alike – time sufficiency plays the role of moderating the relationship between knowledge quality and employees’ innovation capability. The present study contributes significantly to helping define how knowledge, creativity, and innovation capability are intertwined by highlighting the vital role of knowledge quality, knowledge sharing stimulation, and time sufficiency enhancement.