Technostress influence on innovative work behaviour and the mitigating effect of leader-member exchange: A moderated mediation study in the Indian banking industry

Purpose: The human capital in banks is an invaluable asset towards driving innovation and customer success and providing an edge over the competition. However, post-COVID-19 pandemic, rapid adoption of Information and Communication Technologies (ICTs) in Indian banks has increased employee technostress, resulting in adverse job outcomes. This study merges perspectives from psychology, information technology, and organisational behaviour to explore the impact of technostress and leader-member exchange (LMX) on innovative work behaviour (IWB), demonstrating the necessity of a cross-disciplinary approach to address contemporary workplace challenges. Design/methodology/approach: The study leverages convenience sampling to select online and offline survey participants in leading Indian banks (N = 250). The dataset was analysed using the partial least squares structural equation modelling (PLS-SEM) technique and SmartPLS 4 software. It leverages the twin support of the job- demands resources framework and the celebrated social exchange theory. Findings: The authors concluded that employees are experiencing adverse effects of the implementation of ICTs in Indian banks in a quest to achieve innovation. They are experiencing technostress which reduces the IWB of banking employees. Technostress also reduces work engagement which, in turn, leads to burnout and subsequent reduction in IWB. High-quality LMX relationships can promote IWB of bank employees by moderating the indirect effect of technostress on IWB via work engagement. Originality/value: This research contributes significantly to the literature by exploring the causes of reduced IWB and strategies to foster innovation in the banking industry. The research is among the pioneer studies that empirically investigate the moderated mediation research model at the intersection of stress, innovation, and leadership literature in the context of the Indian banking industry. It also sets a foundation for future replications across different industries and geographies to explore the generalizability of these effects. Practical implications: For improving employee IWB, managers and line-of-business leaders can monitor the technostress and work engagement levels against the standards. Organisations can invest in technostress research, develop suitable human resource strategies and training plans to improve work engagement and enable high-quality leader-member exchange to mitigate technostress and promote innovation. These initiatives can help maximise the benefits of ICT initiatives and teleworking implementation.