Motivate or suppress: The dual effects of leader bottom-line mentality on employee innovation behavior

Abstract Background In the VUCA era, employee innovation behavior is critical to a enterprise success. In China's high power distance and collectivist culture, employee innovation behavior is often influenced by leadership authority, leading to a division between proactive and reactive innovation behavior, with each having a different effect on innovation performance. Innovation is influenced not only by leadership type but also by leadership mindset. As a unidimensional approach focused on bottom-line profits while neglecting other important factors, leader bottom-line mentality (LBLM) and its effect on employee innovation behavior, especially on proactive and reactive innovation, has yet to be thoroughly explored. Understanding this dual influence can help balance short-term profit goals with long-term innovation development. Methods This study employed a two-stage survey method, conducting a questionnaire survey with employees from 13 innovation-driven enterprises, ultimately collecting 351 valid responses. Using SPSS and MPLUS software, the data were analyzed through reliability and validity tests, confirmatory factor analysis, descriptive statistics, and linear regression to validate the proposed research hypotheses. Results the study finds that LBLM has a significantly negative effect on employee proactive innovation behavior but a positive effect on reactive innovation behavior. Moreover, employees' willingness to take risks mediates the relationship between LBLM and employee innovation behavior. At the same time, intrinsic work values negatively moderate the relationship between LBLM and Willingness to take risks, enhancing proactive innovation behavior and reducing reactive innovation behavior. On the other hand, extrinsic work values positively moderate the relationship, enhancing reactive innovation behavior and reducing proactive innovation behavior. Conclusion As a unidimensional mentality, LBLM has a double-edged effect on employee innovation behavior: it positively predicts reactive innovation behavior while negatively predicting proactive innovation behavior. However, this effect is moderated by work values; intrinsic work values weaken the double-edged effect, whereas extrinsic work values enhance its influence.