ABSTRACT
In this competitive business environment, organizations must have the ability to compete with other organizations. One of the effective ways to cope with this challenge is to instill innovative work behavior in the employees. Some studies found that happy workers are capable of performing productively, but some others show different results. This inconsistency of the results needs to be further investigated. Some studies found that work happiness is related to psychological capital (PsyCap). On the other hand, PsyCap also has a significant relationship with innovative work behavior. PsyCap may therefore explain the dynamics between work happiness and innovative work behavior. The participantsinvolved in this research were 135 employees of the headquarters of PT Bank Syariah X. The instruments used to measure the variables were the Innovative Work Behavior Scale (2014) having a Cronbach Alpha coefficient (α) of 0.93, the Work Happiness Scale (2013) α = 0.76, and the Psychological Capital Questionnaire (2007) α = 0.87. The resultsshow there was no significant correlation between work happiness and innovative work behavior (r = 0.14; p > 0.12). On the other hand, work happiness had a significant correlation with PsyCap (a = 0.29) and PsyCap had a significant correlation with innovative work behavior (b = 0.33). In other words, there was an indirect correlation between work happiness and innovative work behavior through psychological capital as a mediator variable (ab = 0.09). These results are expected to help organizations to have a more comprehensive understanding about those variables to reach optimum advantages.
