The Influence of Decision-Making Logic on Employees’ Innovative Behaviour: The Mediating Role of Positive Error Orientation and the Moderating Role of Environmental Dynamics

PURPOSE: The derivation of employees’ innovative behaviour is a complex multi-stage process influenced by decision logic. However, previous research on the relationship between the two has not been comprehensive without considering the individual level of employees, and the mechanism of action between the two is still unclear. Based on the behavioral decision theory, the broaden-and-build theory of positive emotions and triadic reciprocal determinism. This study investigates the mediating effects of positive error orientation between decision-making logic and employees’ innovative behavior, and the moderating effects of environmental dynamics between decision-making logic and employees’ innovative behavior, focusing on the individual level. METHODS: The questionnaire data was obtained from 403 employees randomly selected from 100 companies in Nanchang, China, in various industries such as manufacturing, transportation, storage and postal services, trade, and wholesale and retail trade. Hypotheses were tested using structural equation modeling. RESULTS: Effectual logic had a significantly positive impact on employees’ innovative behavior. The direct effect of causal logic on employees’ innovative behavior was not significant, but the total effect was significantly positive. Positive error orientation played a mediating role between both types of decision-making logic and employees’ innovative behavior. Moreover, environmental dynamics played a negative moderating role between effectual logic and employees’ innovative behavior. ORIGINALITY/VALUE: This study expands the application of behavioral decision theory, the broaden-and-build theory of positive emotions and triadic reciprocal determinism in employees’ innovative behaviour, enriches the research on the mediating and moderating mechanism between employees’ decision-making logic and innovative behaviour, and provides a new research perspective and empirical support for subsequent related research. PRACTICAL IMPLICATIONS: The results of this study provide practical suggestions for promoting employees’ innovative behaviour. For example, employees need to cultivate logical thinking, train their decision-making ability, form a positive error orientation, and objectively assess the external environment.