LAUSR

PurposeThis study aims to examine the link between leader–member exchange (LMX) and employee innovative work behavior (IWB) by using employee job crafting as a mediator.Design/methodology/approachThe study uses multilevel, multisource and multiwave data collected from 284 employees working in the banking sector of Pakistan.FindingsThe study findings suggest a significant positive relationship between (i) LMX and job crafting dimensions and (ii) job crafting dimensions and employee IWB. Job crafting dimensions mediated the impact of LMX on IWB, except for relational crafting, which was not significant. Multilevel analysis demonstrated significant individual-level job crafting and IWB.Originality/valueThis study undertakes a multilevel mediational analysis to examine the relationship between LMX and IWB, which is rarely applied in the existing literature. Moreover, this study contributes to understanding how LMX influences IWB using the conservation of resources theory.