Innovation is an important driver of sustainable development. It improves labor productivity and strengthens the competitiveness of commercial banks while supporting economic efficiency, environmental responsibility, and social equity. This study aims to investigate the factors of the work environment on innovation engagement, thereby affecting innovation behavior. The research also identifies the moderating role of personal innovation capacity in the relationship between Innovation engagement and Innovation behavior. The study sample consists of 341 employees working at commercial banks in Vietnam. Since the research model is PLS-SEM, the data analysis process is conducted in two steps using SmartPLS software. The research results show that the two components of the work environment, social environment and physical environment, have a significant positive impact on innovation engagement. Furthermore, innovation engagement has a significant positive influence on innovation behavior. The findings also confirm the positive moderating role of personal innovation capacity in the relationship between innovation engagement and innovation behavior. These results offer a comprehensive understanding of how social and physical work environments influence innovation behavior. The findings also provide a practical foundation for banks to develop informed decisions and sustainable growth strategies. Identify the influence of the social and physical work environment on innovation engagement among bank employees. Examine the relationship between innovation engagement and innovation behavior in commercial banks. Examine the moderating influence of personal innovation capacity on the relationship between innovation engagement and innovation behavior.
Sang et al. (Tue,) studied this question.