Purpose: The purpose of this paper is to examine how leader–member exchange relates to subordinate’s innovative work behavior through core self-evaluation (CSE), domain knowledge and creative process engagement. On the basis of an interactional approach, this study hypothesized that there is an interaction between leader–member exchange, CSE and domain knowledge that affects innovative work behavior, such that leader–member exchange has the strongest positive relationship with innovative work behavior when subordinates have high levels of CSE and domain knowledge; and creative process engagement mediates the effect that this three-way interaction between leader–member exchange, CSE and domain knowledge has on innovative work behavior.Design/methodology/approach: Data were collected from 323 employees and their immediate supervisors (121) from automotive industry. First, subordinates completed measures of their leader–member exchange, CSE and domain knowledge. Then, the supervisors of these employees assessed their subordinates’ innovative work behavior.Findings: The results showed that leader–member exchange, CSE and domain knowledge interacted to affect employee innovative work behavior in such a way that when CSE and domain knowledge were both high, leader–member exchange had the strongest positive relationship with innovative work behavior and creative process engagement mediated this relationship.Originality/value: This study is the first of its kind to empirically examine the interactional perspective of leader–member exchange on innovative work behavior through domain knowledge, CSE and creative process engagement. Theoretical and practical implications and future area of research are discussed at the end.