Innovative work behavior (IWB) is a critical component of organizational competitiveness in the post-pandemic digital transformation era, which is marked by rapid technological change and high uncertainty. This study's objective is to examine the relationship between IWB and work stress, work engagement, and leader-member exchange (LMX), using job performance as a mediator. The Structural Equation Modeling (SEM-PLS) method was employed in this study's quantitative methodology. 145 Generation Z workers in East Java provided information via a Likert-scale survey. Three key conclusions are revealed by the data. First, work engagement significantly and favorably affects IWB and job performance. Second, while it has no influence on job performance, LMX significantly and favorably affects IWB. Third, although it has no direct impact on IWB, work stress has a detrimental and substantial impact on job performance. Additionally, the mediation study demonstrates that employee innovation is largely driven by work success. These results have three useful ramifications for businesses: Integrating mindfulness-based stress management programs; adaptive workloads into performance appraisal systems; and Training leaders to build high-quality LMX that focuses on emotional support and providing innovative autonomy.
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