Purpose – This study examines how Psychological Capital (PsyCap) is associated with Innovative Work Behavior among Generation Z employees by testing the parallel mediating roles of Work Readiness and Work Engagement and the moderating role of Learning Agility in the relationships between Work Readiness, Work Engagement, and Innovative Work Behavior.Design/methodology/approach – The study adopted a quantitative explanatory cross-sectional design using standardized survey data from 250 Generation Z employees selected through purposive sampling. Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS was used to assess the measurement and structural models. Bootstrapping with 5,000 resamples was applied to test direct, indirect, and moderation effects. Because all variables were measured at one point in time using self-reported responses, the results are interpreted as associations consistent with the proposed theoretical pathways rather than causal proof.Finding/Results – Psychological Capital is positively associated with Work Readiness, Work Engagement, and Innovative Work Behavior. Work Readiness and Work Engagement are also positively associated with Innovative Work Behavior. The indirect effects indicate that Work Readiness and Work Engagement function as parallel mediating pathways linking Psychological Capital with Innovative Work Behavior. Originality/Value – This study develops an integrated moderated parallel mediation framework linking Psychological Capital, Work Readiness, Work Engagement, Innovative Work Behavior, and Learning Agility in the context of Generation Z employees. The study contributes by showing that psychological resources are associated with innovation-related behavior through preparedness and motivational involvement, while also providing evidence that Learning Agility may not necessarily amplify these relationships in the examined sample.
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