How Challenge Stressors Affect GenAI-Enabled Employee Innovation? Based on Transactional Theory of Stress and Coping Model

The rapid development of generative artificial intelligence (GenAI) presents new opportunities to address challenge stressors and enable employee innovation. However, research on how challenge stressors affect employee innovation in the context of GenAI remains limited. Based on the transactional theory of stress and coping, this study explores how challenge stressors (time pressure and learning demand) affect GenAI-enabled employee innovation through the mediating role of ambidextrous GenAI use (exploitative use and exploratory use) and the boundary role of perceived GenAI feedback quality. By analyzing questionnaire data collected from 330 employees across various industries, this study found that challenge stressors positively influence both exploitative GenAI use and exploratory GenAI use, which in turn enhance GenAI-enabled employee innovation. In addition, perceived GenAI feedback quality weakens the positive effect of time pressure on exploitative GenAI use but strengthens the positive impact of learning demand on exploitative GenAI use. These results contribute significantly to the literature by exploring the mechanisms and boundary conditions under which challenge stressors influence employee innovation in the context of GenAI. In practice, this study provides valuable insights for policymakers and technology managers to manage employee stress, develop employee innovation, and optimize GenAI implementation to fully realize the long-term value of GenAI.