Unfolding Effect Areas of Employee-driven Innovation: A Systematic Literature Review

Abstract

Over recent years, employee-driven innovation (EDI) has emerged as a prominent topic in both practical and academic circles. Particularly in economic-oriented organizations seeking growth, there is an increasing trend to involve “ordinary” employees—those whose primary responsibilities do not traditionally include innovation tasks—in the innovation process. These employees are tapped for their creativity and experience in the hope that they will generate innovative ideas beneficial to the organization. Consequently, EDI is increasingly acknowledged as a significant source of competitive edge, with employees often seen as initiating innovators that complement traditional channels, such as formal research and development departments. Despite the growing body of research in the interdisciplinary field of EDI and the interplay of multiple perspectives and effect areas, a comprehensive overview remains elusive. In this article, we conduct a systematic literature review to expose the vast effect areas of EDI, focusing on the micro (employee) and meso (organizational) levels. We identified four effect areas at the micro-level and seven at the mesolevel. Our research enhances the understanding of the multi-layered components of EDI and provides insights and implications for academics and practitioners aiming to harness its potential.