Always good for innovation? Investigating when and why high-performance work systems promote versus inhibit employees’ innovative behavior

Purpose This study employs job demands-resources (JD-R) model and self-determination theory (SDT) to examine the double-edged effect of perceived high-performance work systems (HPWS) on employees’ innovative behavior via harmonious passion and obsessive passion. Additionally, the study investigates the cross-level moderating effect of innovative climate on the relationship between perceived HPWS and innovative behavior through the two types of passion. Design/methodology/approach Time-lagged data were collected at three points (Time 1, 2 and 3) to mitigate common method variance. Data were collected from Pakistan with 451 respondents from 90 firms. Findings Findings reveal that perceived HPWS positively affect employees’ innovative behavior via harmonious passion and negatively influence employees’ innovative behavior via obsessive passion. Moreover, cross-level innovative climate strengthens both the positive and negative impact of perceived HPWS on employees’ innovative behavior. Originality/value This study proposes and tests the double-edged effects of perceived HPWS on employees’ innovative behavior, challenging the previous consensus that perceived HPWS is always beneficial for innovative behavior. Besides, we identify organizational innovative climate as a critical condition that amplifies the dual effects of perceived HPWS on employees’ innovative behavior via passion.