From Employee Engagement to Open Service Innovation: The Role of Creative Self-Efficacy and Employee Innovative Behaviour – A Conceptual Analysis

The rapid development of the industrial revolution 4.0 and digitalization challenges organizations to innovate continuously, particularly in the service sector. Open Service Innovation (OSI) has emerged as a key strategy, leveraging both internal and external resources to foster innovative solutions. However, the low engagement of employees in the innovation process remains a significant barrier. Employee engagement, defined as the emotional, cognitive, and physical connection to their work, is essential for enhancing creativity and innovation. Central to this concept are two factors: creative self-efficacy and employee innovative behavior. Creative self-efficacy, or confidence in one’s creative abilities, directly influences employees’ willingness to engage in innovation. Meanwhile, employee innovative behavior includes actions such as idea generation, promotion, and implementation of new solutions. This study aims to explore how these psychological factors mediate the relationship between employee engagement and open service innovation, offering a comprehensive framework grounded in Social Cognitive Theory and Employee Engagement Theory. The findings suggest that fostering an environment that supports creative self-efficacy and encourages innovative behavior can significantly enhance employee engagement, ultimately driving open service innovation.