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This study aims to examine the influence of performance appraisal on Innovative work behavior of employees in public sector universities of Pakistan, by using the Ability, Motivation, and Opportunity framework.

A newly developed framework has been created to explore how performance appraisal, self-efficacy, and organizational climate influence employees' innovative work behavior. The study collected data using a self-administered questionnaire from employees who work in public universities in Pakistan.

The findings of this study revealed a positive correlation between performance appraisal and innovative work behavior. It is observed that self-efficacy mediates the relationship between performance appraisal and innovative work behavior and organizational climate moderates the relationship between self-efficacy and innovative work behavior.

The current study is novel and unique for several reasons. But the main contribution of this study is the validation of self-efficacy's mediating impact on innovative work behavior as well as the validity of the organizational climate as moderating effect in Pakistan’s public sector universities, where a large number of students have been enrolled and they can get advantage from their teacher's improved innovative behavior.