Unlocking Bootleg Innovation: The Roles of Paradox Mindset,Learning from Failure,and Strength Use

Abstract

Bootleg innovation, self-initiated innovation by employees without formal organizational approval, plays an important role in enhancing organizational adaptability, especially in fast-changing digital work environments. While previous research has focused on structural or managerial antecedents, limited attention has been given to the cognitive and psychological foundations that motivate such informal innovation. Drawing on social cognitive theory, we examine how paradox mindset, learning from failure, and strength use jointly influence employees’ engagement in bootleg innovation. Using two-wave survey data from 518 employees in a large information and communications technology company, our findings show that paradox mindset promotes bootleg innovation both directly and indirectly by enhancing learning from failure and use of personal strengths. These results suggest that employees’ internal resources and adaptive cognition are key to driving innovation beyond formal roles. This study contributes by uncovering mechanisms that explain bootleg innovation and offers practical implications for supporting informal innovation in digitally transforming workplaces.