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Teacher innovation is critical for fostering student creativity, enhancing school effectiveness, and advancing national talent strategies. Drawing on data from 508 teachers in mainland China, this study examines how and under what conditions teachers’ well-being influences their innovative work behavior. Regression and bootstrapping analyses reveal that: (1) teacher well-being positively predicts innovative behavior; (2) perceived insider status mediates this relationship; (3) principals’ authentic leadership moderates the link between perceived insider status and innovation; and (4) the indirect effect of well-being via perceived insider status is strengthened under high authentic leadership. These findings highlight the emotional mechanisms and contextual factors shaping teacher innovation, offering both theoretical insights and practical guidance for school leadership.