Linking self-efficacy, positive emotions, and digital competence to innovation: The mediating role of work engagement and the moderating role of inclusive leadership

Abstract

This study investigates the complex relationships between positive emotions, self-efficacy, digital competence, inclusive leadership, work engagement, and innovative behavior among Generation Z employees in Chinese technology companies. Grounded in Social Cognitive Theory (SCT) and Broaden-and-Build Theory (BBT), the research addresses critical gaps in understanding how psychological factors and leadership approaches influence innovation in digitally transformed workplaces. The study employed a quantitative approach using structural equation modeling (SEM) to analyze data from 406 Generation Z employees working in R&D departments of ten leading Chinese technology firms: Huawei, BYD, CATL, Alibaba, Tencent, Xiaomi, Baidu, ByteDance, JD.com, and Lenovo. Data were collected through validated questionnaires measuring positive emotions, self-efficacy, digital competence, work engagement, inclusive leadership, and innovative work behavior.