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Purpose

There has been minimal research on the impact of an employee’s person-organization (P-O) fit on his/her innovative work behaviour (IWB). A number of studies have examined the impact of P-O fit on multiple employee positive behaviours and outcomes; potential mediating effect of psychological empowerment is less frequently explored. The current study aims to fill this gap in the literature. To understand the psychology of P-O fit, this study has longitudinally analyzed the relationship between P-O fit and IWB both self and supervisor-based assessments and impact of psychological empowerment on this relationship.

Design/methodology/approach

Data were collected from 448 subordinates and 79 supervisors from two knowledge intensive industries in China. Structural equation modelling was used to analyze the relations.

Findings

Results of the study indicate that employee’s P-O fit is positively related to both self and supervisor ratings of innovative behaviours, and psychological empowerment acts as a partial mediator between P-O fit and IWB at both Time 1 and Time 2. These results imply that an employee’s perception of value congruence impacts his/her perception about feeling of empowerment which in turn helps in engaging him/her in to acts of IWB more often.

Originality/value

Study findings begin to explain how P-O fit impacts IWB of individuals. Specifically, the authors find that psychological empowerment explains the relationship between P-O fit and IWB.

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