Organizational climate for entrepreneurial intentions: the mediating role of innovative work behavior

Purpose Little is known about the relationship between organizational climate and the individual entrepreneurial intention of employees. Striving for a climate that nurtures opportunities for employees to be innovative and entrepreneurial is adamant for organizations, especially those in managerial ranks. The purpose of this study is to investigate how organizational climate relates to the entrepreneurial intention of managers. The study scrutinizes the direct relationship between organizational climate and entrepreneurial intention and the mediating effect of innovative work behavior. Design/methodology/approach Data were collected from 201 managers working in companies varying in size and industry in Kosovo using a cross-sectional design. Structural equation modeling is used to assess the latent and underlying factors shaping the direct relationships and the mediating mechanisms. Findings The study reveals that organizational climate does not influence the entrepreneurial intention of managers. The relationship is significantly mediated by innovative work behavior, indicating full mediation. Consequently, organizational leaders should encourage an organizational environment that enables innovation-driven managers to engage in innovative and entrepreneurial projects and activities. Originality/value The study examines managers’ entrepreneurial intentions through the lens of organizational climate theory to understand the intricacies of organizational and individual-level factors. This study provides a novel perspective on the relationship between organizational climate and entrepreneurial intentions mediated by innovative work behavior. Study results contribute to the body of knowledge on the determinants of entrepreneurial intentions by adding new perspectives on the intersection of factors at the individual-organizational levels.