Psychological Safety and Innovative Work Behavior: Work Engagement as a Mediator Among Generation Z in Indonesia

Abstract

The rapid growth of Indonesia's digital economy has increased organizational demands for innovation, particularly as Generation Z becomes a dominant workforce segment. Although previous studies have established a positive relationship between psychological safety and innovative work behavior, limited research has examined the motivational mechanism underlying this relationship, especially in emerging economies. Moreover, the integration of Social Exchange Theory (SET) and the Job Demands–Resources (JD-R) Model remains underexplored. This study investigates the mediating role of work engagement in the relationship between psychological safety and innovative work behavior among Generation Z employees in Indonesian digital companies. A quantitative cross-sectional survey was conducted involving 215 respondents selected through purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings reveal that psychological safety positively influences innovative work behavior and work engagement. Furthermore, work engagement significantly enhances innovative work behavior and partially mediates the relationship between psychological safety and innovative work behavior. These findings extend the JD-R Model by demonstrating that psychological safety functions as a strategic job resource that stimulates employee innovation through motivational processes. The study also enriches Social Exchange Theory by explaining how reciprocal organizational support encourages innovative behavior. Practically, organizations should foster psychologically safe work environments while strengthening employee engagement through supportive leadership, open communication, and meaningful work to enhance innovation among Generation Z employees.