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Leveraging the job demands-resources (JD-R) theory, this study proposes and validates a mediation model depicting the impact of health-promoting leadership (HPL) on innovation performance (IP), with the relationship partially mediated by two health-related factors: psychological well-being (PWB) and positive conflict (PC).

Employing a structured questionnaire developed from validated scales sourced from the existing literature, the study collected data from a sample of 310 employees across various organizations within the service sector of the United Arab Emirates. The dimensionality, reliability, and validity of scales were assessed using exploratory and confirmatory factor analysis. The study’s seven hypotheses were tested through structural equation modeling in AMOS and mediation analysis using the Hayes process model in SPSS.

Support was found for all seven hypotheses, demonstrating that HPL exerts both a direct and an indirect effect on IP, with PWB and PC serving as partial mediators.

Distinct from the traditional leadership literature, which often views an employee’s psychological health as a personal matter, this study highlights the organizational role in promoting psychological well-being. It also provides significant theoretical contributions to the underexplored area of conflict management within the context of innovation.

By promoting employees' PWB, HPL can optimize human capital within organizations. Additionally, leaders can leverage the potential of PC to foster an environment conducive to innovation, resulting in enhanced organizational performance.

The findings enrich the leadership and IP literature by identifying inter-relationships between the three health related antecedents of IP.