Organizational Innovation Climate to Improve Employee Innovative Behaviour Through Psychological Ownership in Employees in the Department of Marine Affairs and Fisheries of East Java Province, Indonesia

Innovation is highly crucial for the survival of organizations in dynamic environments. However, how the combined effects of organizational innovation climate and psychological ownership influence employees’ innovative behaviour has received limited research, especially in the public sector. This study attempts to fill this gap by investigating how the organizational innovation climate influences the psychological ownership and innovative behaviour of employees in the East Java Provincial Marine and Fisheries Service, Indonesia. A quantitative approach was applied, and 78 respondents were selected by simple random sampling. Data collection was done through questionnaires, while the data analysis was done using SmartPLS, path analysis. Results indicate that organizational innovation climate significantly influences psychological ownership and employee innovative behaviour. However, psychological ownership does not lead to a significant impact on innovative behaviour of employees, which means that supportive organizational conditions are essentially required for innovation to take place. These findings confirm the Resource-Based Theory, which focuses on the organizational resources as a source of competitive advantage. The practical implications are the enabling innovative climate development to enhance the employee’s creativity and innovation capability in public sector institutions for better organizational performance.