Can Employee‐Friendly Workplace Practices Improve Innovation Productivity? An Organizational Identification Perspective

ABSTRACT Drawing on the organizational identification perspective, this paper proposes that employee‐friendly workplace practices can positively impact employees' innovation productivity through their identification with the organization. Using a sample of 2642 firm‐year observations from public firms in the United States, a positive relationship was found between employee‐friendly workplace practices and employee innovation productivity, which was mediated by identification with the organization. The results also showed that the employee professional human capital dampened the relationship between employee‐friendly workplace practices and employee innovation productivity. Finally, the mediated relationship between employee‐friendly workplace practices and employees' innovation productivity through organizational identification was moderated by employees' professional human capital, such as when employees are credentialed knowledge workers.