Does Being Innovative Make Employees Happier? Evidence from Start-Up Employees in Indonesia

Abstract

The high-pressure environment of start-up ecosystem in Indonesia underscores the critical need to understand what contributes to employee well-being within this context. Start-ups are characterized by fast-paced workflows and continuous demands for adaptability, all of which can intensify psychological pressure on employees. This study examined the effect of innovative work behavior on subjective well-being among 421 start up employees in Indonesia. Innovative work behavior was measured using Janssen’s (2000) nine-item scale, while subjective well-being was measured with the Satisfaction with Life Scale and Positive and Negative Affect Schedule. Data were analyzed using Partial Least Squares Structural Equation Modeling with the disjoint two-stage approach. The analysis demonstrated that innovative work behavior has a positive and significant effect on subjective well-being (β = 0,393, R² = 0,154), indicating that employees who more frequently generate, promote, and realize new ideas tend to experience higher levels of subjective well-being. This finding suggests that although innovative work behavior is typically emphasized for its organizational value, it also plays an important role in supporting employees’ subjective well-being. This study contributes new empirical insight to the existing start-up literature and offers implications for future research.