From flexibility to innovation: The mediating role of individual innovation capability in academics' innovative work behaviour

Abstract

Flexible work arrangements (FWAs) are increasingly adopted to enhance employee autonomy, work-life balance and innovation. Yet, limited attention has been given to the mechanisms through which workplace flexibility translates into innovative work behaviour (IWB), particularly in higher education institutions (HEIs). This study examines the direct effect of FWAs on IWB and investigates individual innovation capability (IIC) as a mediating mechanism in this relationship. Drawing on Social Exchange Theory, Self-Determination Theory and Social Cognitive Theory, data were collected from 389 permanent Malaysian academics employed in universities listed in the QS World University Rankings 2023. The model was assessed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with 10,000 bootstrap subsamples. The results show that FWAs have a positive and significant direct effect on IWB (β = 0.102, p = 0.006), although the magnitude of the direct effect is modest. FWAs also significantly enhance IIC (β = 0.364, p < 0.001), while IIC strongly predicts IWB (β = 0.679, p < 0.001). Importantly, IIC significantly mediates the FWA–IWB relationship (β = 0.247, p < 0.001), with the indirect effect exceeding the direct effect. These findings show that FWAs foster IWB through both direct and capability-building pathways, with IIC as a key mechanism translating flexibility into innovation. The study extends flexible-work research by highlighting the role of individual capability development and suggests that HEIs should complement flexible-work policies with initiatives that strengthen academics' innovation capability.