China's increasing focus on energy efficiency and waste recycling, coupled with the environmental impact of firms' activities, highlights the importance of fostering employee innovative behavior (EIB). EIB encompasses idea generation (IG) and idea implementation (II). While prior research has explored predictors of IG and II, a comprehensive understanding of the role of perceived environmental corporate social responsibility (ECSR) remains lacking. Perceived ECSR, defined as employees' subjective assessment of their organization's environmental responsibility, is hypothesized to positively influence IG and II. This study addresses this gap by examining the direct effects of perceived ECSR on IG and II and the moderating effect of psychological capital (PsyCap), a positive psychological state encompassing self-efficacy, hope, optimism, and resilience, on these relationships. The construction industry in China, heavily reliant on natural resources and facing significant environmental pressures, provides a suitable context for this investigation. The study leverages social identity theory (SIT) and stakeholder theory to understand the mechanisms linking perceived ECSR, PsyCap, IG, and II. SIT suggests that positive perceptions of organizational ECSR enhance employee identification, leading to increased innovative behaviors. Stakeholder theory posits that ECSR activities, by aligning with stakeholder interests, facilitate resource acquisition and support for employee innovation. By integrating these theories, this study aims to provide a more nuanced understanding of the complex interplay between ECSR perception, employee psychological resources, and innovative behaviors within the context of environmental protection and China's innovation-driven development strategy. The study's contributions include a micro-level perspective on the impact of perceived ECSR on employee innovation, a clear explanation of how perceived ECSR affects IG and II in an environmental context, and the identification of PsyCap as a boundary condition that influences the effectiveness of perceived ECSR in fostering innovation.

The literature review examines three key areas: ECSR perception, employees' innovative behavior (EIB), and psychological capital (PsyCap). Regarding ECSR perception, most research focuses on macro-level effects (e.g., firm value, environmental performance). However, the micro-level impact on internal stakeholders, specifically employees, is less explored. Studies have begun to examine the link between ECSR perception and employee behaviors such as customer loyalty, green purchase intention, and pro-environmental behavior. Regarding EIB, research examines both organizational-level (e.g., hierarchy, social networks) and individual-level (e.g., knowledge sharing, creative self-efficacy) antecedents of IG and II. Some studies highlight differences in the impact of organizational factors on IG versus II. Finally, the literature on PsyCap explores its role in various employee outcomes, including job performance, citizenship behaviors, and engagement. Recent research suggests a link between PsyCap and innovative behavior, yet the moderating role of PsyCap in the relationship between ECSR perception and innovation remains underexplored. The study integrates SIT and stakeholder theory to frame the hypotheses. SIT explains how organizational factors influence employee identification and behavior, while stakeholder theory focuses on resource acquisition and exchange to support innovation.

This study employed a quantitative research design using a survey questionnaire distributed to 500 employees in Chinese construction firms. 348 usable responses (69.60% response rate) were obtained. The sample predominantly consisted of male (87.93%) employees, with the majority aged over 30 and possessing at least a bachelor's degree. The questionnaire measured perceived ECSR, PsyCap, IG, and II using established scales adapted using a back-translation technique from English to Chinese. A 5-point Likert scale was used for all items. Control variables included gender, age, education, position, tenure, firm size, team size, marital status, and ownership. Reliability analysis using Cronbach's alpha confirmed adequate reliability for all scales (alpha > 0.70). Principal component analysis and confirmatory factor analysis (CFA) demonstrated the suitability of factor analysis and confirmed the validity of the measures, including convergent and discriminant validity. To mitigate common method variance (CMV), several procedural techniques were implemented including anonymous questionnaires, reordered questions, and the absence of uniform answers. Harman's single-factor test and CFA further supported the absence of significant CMV. Descriptive statistics and one-sample t-tests were performed, followed by correlation analysis and ordinary least squares (OLS) regression to test the hypotheses. Multicollinearity diagnostics were conducted to ensure data integrity.

The descriptive statistics revealed high levels of perceived ECSR, PsyCap, IG, and II. One-sample t-tests confirmed that these levels were significantly higher than normative values. Correlation analysis indicated significant positive correlations between perceived ECSR and both IG and II, and between PsyCap and both IG and II. OLS regression analysis, controlling for demographic and organizational variables, confirmed that perceived ECSR significantly and positively predicted both IG (β = 0.309, p < 0.01) and II (β = 0.371, p < 0.01). Furthermore, the interaction terms between perceived ECSR and PsyCap were significant and positive for both IG (β = 0.106, p < 0.05) and II (β = 0.085, p < 0.1), indicating a moderating effect of PsyCap. This implies that the positive influence of perceived ECSR on IG and II is stronger when PsyCap is high. Sensitivity analyses, including different model specifications and the removal of the ownership control variable, confirmed the robustness of the findings. Specifically, the sensitivity tests demonstrate that the initial model, accounting for perceived ECSR and PsyCap, provides the best fit to the data, indicating that the model adequately captures the underlying relationship among the main variables.

The findings support the hypotheses, demonstrating a positive relationship between perceived ECSR and employee innovative behavior (IG and II). This supports the theoretical framework integrating SIT and stakeholder theory, suggesting that positive perceptions of ECSR foster employee identification and increase their willingness to contribute to organizational innovation. The moderating effect of PsyCap highlights the importance of individual psychological resources in amplifying the impact of perceived ECSR. Employees with high PsyCap are better equipped to recognize and respond positively to organizational ECSR efforts, thus leading to greater involvement in IG and II. These findings contribute significantly to the literature on ECSR, extending its impact to the micro-level and focusing on its relationship with employee innovation. The study also provides valuable insights for organizations seeking to foster innovation and achieve sustainable development. By focusing on ECSR perception and promoting positive psychological capital, organizations can strengthen their employee innovation capabilities. The findings contribute to bridging the gap between micro-level ECSR and employee innovation, showing a direct impact of perceived ECSR on both idea generation and implementation, and detailing the moderating influence of PsyCap.

This study demonstrates the significant positive impact of perceived ECSR on both idea generation and implementation, with the strength of this impact enhanced by high psychological capital among employees. The findings underscore the importance of fostering positive ECSR perceptions within organizations and nurturing employee psychological resources to boost innovation. Future research could examine the generalizability of these findings across various industries and national contexts, explore longitudinal relationships to establish causality, investigate additional moderating factors, and consider the influence of organizational climate on innovation alongside individual factors.

The study's limitations include its cross-sectional design, which limits causal inferences; the focus on the Chinese construction industry, potentially limiting generalizability to other sectors or nations; the possibility of other moderating factors affecting the relationships; and the focus on individual factors rather than organizational climate. Future research should address these limitations using longitudinal studies, broader sample populations, and a more comprehensive theoretical framework.