Layla Hafni

Type of the article: Research Article

Abstract
This study investigates how flexible work arrangements influence innovative work behavior, focusing on work–life balance and leader–member exchange among female employees in the formal sector. Using boundary theory and the theory of planned behavior, this study involved 135 female employees from the emerging formal economic sector in Riau, Indonesia. Female employees were selected as research subjects because they generally face greater challenges balancing work and family responsibilities than male employees. Data were collected via a survey. This study used partial least squares structural equation modeling (PLS-SEM) to test the proposed relationships. The findings indicate that flexible work arrangements have a positive and significant effect on work–life balance (β = 0.500, p < 0.000). Work–life balance has a positive and significant effect on innovative work behavior (β = 0.325, p < 0.048). Flexible work arrangements have a positive and significant effect on innovative work behavior (β = 0.427, p < 0.000). However, leader-member exchange has no significant effect on innovative work behavior (β = –0.111, p < 0.448). This study confirms that work–life balance does not mediate the relationship between flexible work arrangements and innovative work behavior (β = 0.162, p < 0.097). These results indicate that flexible work arrangements drive innovative work behavior. This study contributes to the literature on innovation and human resource management by explaining how flexible work arrangements shape innovative work behavior in formal organizations through work–life balance.

Acknowledgment
We would like to express our gratitude to the Pelita Indonesia Business and Technology Institute for providing research funding through an Institutional Research Grant, which has enabled this research to be carried out successfully and will continue in the years to come. This research publication was funded by the Indonesian Ministry of Higher Education, Science and Technology, Directorate General of Research and Development, based on Decree No. 0488/C/DT.06.01/2025 dated December 11, 2025.