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This paper aims to adopt a moderated mediation model to examine the mediation roles of employee engagement and hindrance time pressure; the moderation roles of personality in the relationship between strengths-based psychological climate and employee innovation performance.

Applying snowball sampling and a self-administered survey, the data were collected from employees and immediate supervisors working in Chinese small-medium-sized enterprises. The PROCESS macro for SPSS was applied to examine the moderated mediation model.

The results show that a strengths-based psychological climate significantly influences employee engagement and hindrance time pressure, which, in turn, affects employee innovation performance. Both extroversion and emotional stability moderate the relationship between strengths-based psychological climate, employee engagement and hindrance time pressure but also the indirect effect of strengths-based psychological climate on employee innovation performance through employee engagement and hindrance time pressure.

Drawing on job demands and resources models, this research focusses on maximizing employee strengths instead of weaknesses and includes both two intermediating mechanisms in-between strengths-based psychological climate and innovation performance. Personality variables are applied as moderators, as the study assumes the effectiveness of the strengths-based interventions may vary depends on individual differences.

This study proposes that a strengths-based psychological climate may shift focusses from employee weakness to strengths to maximise their talents. Also, personality variables are suggested to be considered in the related human resource practices (e.g. hiring and performance appraisal) to increase the fit between employees, their jobs and the organisations.

This study develops a moderated mediation model to investigate the possible mediating mechanisms and boundary conditions in relation to the impact of strengths-based psychological climate on employee innovation performance.