To ensure the survival and development of organizations in a dynamic and competitive environment, managers must seek new approaches to business management (AlEssa & Durugbo, 2021). This study aims to examine the impact of work motivation on employees’ innovative behavior in Vietnamese enterprises through the mediating factors of psychological capital and transformational leadership style in the context of digital transformation. A quantitative research method was employed using structural equation modeling (SEM) analysis. Research data were collected through a survey of 476 employees working in enterprises that have implemented or are in the process of implementing digital transformation, including both state-owned and private enterprises. The findings indicate that work motivation not only has a direct and positive impact but also an indirect impact on employees’ innovative behavior through the mediating factors of psychological capital and transformational leadership style. Additionally, the transformational leadership style was found to impact employees’ psychological capital. These findings provide significant contributions to the literature. Based on these results, the study proposes several recommendations to enhance employees’ innovative behavior in enterprises within the digital transformation context. This study is a useful reference for firms.

Purpose of the study: Innovation is seen as the key to improving quality and productivity, thereby promoting competition and economic growth. This study analyzes the impact of innovation on economic growth through various measures, such as research and development spending, the number of researchers, number of patents as well as trademark registrations. Research results are evidence to recommend policies for intellectual-based economic growth. Methodology: Literature review and empirical analysis conducted in the study. The empirical method is a two-step System Generalize Methods of Moments (GMM), aiming at reliable results. Accessing the World Bank Database, research data from 64 developed and developing countries are collected from 2006 to 2014. Main Findings: The empirical findings show that innovation plays a crucial contribution in promoting economic growth, similar to national openness and government spending on education. This study also finds a positive impact on foreign investment flows and their spillover role in enhancing the correlation between innovation and economic growth. Applications of this study: The findings of this study focus on the contributions of innovation, foreign direct investment inflows, and other macro factors that can be enforced to improve economic growth by policymakers. Novelty/Originality of this study: The study uses different measures of innovation, including inputs such as the number of researchers, research and development expenditure, and outputs as the number of patents and number of trademark registrations. Empirical findings are found consistently, thus confirming that innovation is very important for economic growth. The study also shows convincing evidence confirming the positive contribution of foreign direct investment as well as its spillover effect on innovation and economic growth.