The increasingly dynamic, digitized, and competitive nature of the work environment compels organizations to strengthen their innovation capabilities through employee behavior. Innovative work behavior (IWB) is crucial, as it encompasses the ability to generate, promote, and implement new ideas within the workplace. This study aims to systematically analyze the psychological and organizational factors driving employee IWB, explain the underlying relational mechanisms, and identify research gaps for future agendas. A Systematic Literature Review (SLR) methodology was employed, adhering to PRISMA 2020 guidelines. Data were gathered by searching peer-reviewed articles in Scopus and Web of Science, supplemented by backward and forward citation searches, focusing on publications from 2021 to 2026. Methodological quality was assessed using the Joanna Briggs Institute Critical Appraisal Tools, while analysis was conducted through structured narrative synthesis and thematic coding. The synthesis reveals that psychological factors—including psychological capital, self-efficacy, psychological safety, intrinsic motivation, and work engagement—serve as internal resources supporting IWB. Organizational factors—such as leadership, organizational support, innovation climate, human resource management practices, and job autonomy—act as conditions that enable these resources to be translated into innovative behavior. The relationship between these factors is not always direct; it can be mediated or moderated by variables such as knowledge sharing, employee voice, organizational identification, positive affect, error risk-taking, and job crafting. Thus, IWB is a cross-level process shaped by the interaction between employees' psychological capacities and an innovation-supportive organizational environment. Future research should expand the use of longitudinal, diary, and multilevel designs, particularly within the contexts of digital, hybrid, and remote work.