The Role of Innovative Work Behavior in Generation Z’s Interest in Entrepreneurship: The Mediating Effect of Entrepreneurial Self-Efficacy on MSME Workers in Makassar City

Abstract

This study examines how innovative work behavior affects entrepreneurial intention among Generation Z employees at micro, small, and medium enterprises (MSMEs) in Makassar. Entrepreneurial self-efficacy serves as the mediating variable. The study used a quantitative, explanatory, cross-sectional design. Purposive sampling yielded 200 Gen Z MSME employees as respondents. PLS-SEM in SmartPLS 4.1 handled the analysis, and mediation was tested through Zhao, Lynch, and Chen's (2010) procedure. Innovative work behavior significantly affects both entrepreneurial self-efficacy and entrepreneurial intention. Self-efficacy, in turn, significantly affects intention. Self-efficacy partially and complementarily mediates the relationship between innovative work behavior and intention, accounting for 58% of the total effect. This study links three theories, self-efficacy theory, Social Cognitive Career Theory, and the Theory of Planned Behavior, into one explanatory chain. It clarifies the tension between mastery-experience and job-embeddedness pathways. It also extends innovative work behavior research into individual entrepreneurial pathways, a direction largely unexplored in Eastern Indonesian MSME settings. MSME owners should formalize channels for realizing employees' ideas. Policymakers should design retention programs that support innovative young talent. Entrepreneurship educators should embed practical, innovation-focused work experience into their curricula. Five factors limit generalizability: the cross-sectional design, single-source self-report data, purposive sampling, the single-mediator model, and the single-city context. Job embeddedness was interpreted conceptually rather than tested empirically. Future research should adopt a longitudinal, multi-city design to address these gaps.