Abstract
This paper examines the connection between perceived overqualification and innovative work behaviour by investigating the moderating effect of an innovative work climate. It also examines whether inclusive leadership moderates the effect of innovative work climate in the relationship between perceived overqualification and innovative work behaviour. We used multi-level modelling analysis (MMA) to examine the three-way cross-level interaction effects of perceived overqualification, innovative work climate, and inclusive leadership on innovative work behavior by collecting primary data from employees and their supervisors in multiple organisations. Results from the multi-level analyses supported a significant relationship between overqualification and innovative work behaviour, moderated by innovative work climate. Furthermore, we found a three-way interaction between perceived overqualification, innovative work climate, and inclusive leadership that shapes employees’ innovative work behaviour such that the moderating role of innovative work climate is stronger in the presence of inclusive leadership. This study’s findings have implications for practice by showing how organisations can take benefit from the extra credentials of overqualified employees. They inform management practitioners on how the interaction between inclusive leadership and innovative work climate may improve innovative behaviour of the overqualified employees.