Effect of Job embeddedness on Innovative work behavior among banking sector employees of Malakand, Pakistan

Abstract

In today’s knowledge-driven and highly competitive environment, organizations rely increasingly on the creativity and adaptability of their employees to stay ahead. This study explores how job embeddedness influences innovative work behavior among banking employees in Malakand, Pakistan. Drawing upon Social Exchange Theory and Conservation of Resources Theory, it argues that employees who feel a strong organizational fit, maintain meaningful professional and social connections, and perceive higher costs of leaving their jobs are more likely to engage in innovation. Adopting a quantitative, cross-sectional design, data were gathered from 270 banking employees through structured questionnaires. The data were analyzed using AMOS Structural Equation Modeling (SEM) to examine hypothesized relationships and overall model fit. The results indicate that job embeddedness has a significant positive effect on innovative work behavior ( = 0.61, p < 0.001). Among its dimensions, fit and links emerged as stronger predictors of innovation compared to sacrifice, explaining 47% of the variance in innovative work behavior. These findings highlight that employees who feel more connected and integrated within their organizations are naturally more motivated to think creatively and contribute to innovation a factor crucial for maintaining a competitive edge in the financial sector. From a practical standpoint, the study suggests that HR managers should foster embeddedness through initiatives that strengthen interpersonal relationships, encourage community engagement, and create meaningful work experiences. The study concludes by emphasizing its theoretical contributions and calls for further research in semi-urban regions like Malakand, where cultural and contextual dynamics uniquely shape innovation at work.