Employees’ intrapreneurial innovative behaviour bestows the pursuit of creative and/or new solutions to the organizations. However, these innovative behaviors may be affected by the internal factors within the organizations. Yet the mechanisms through which these relationships operate are poorly understood in the hotel industry. The aim of this study was to examine the linkage between organizational climate and employee innovative behavior in the tourism based hotel industry in Kenya. Employees organizational climate was studied under three facets: innovative climate, proactive climate and self renewal climate. The study used multisource data from 23 tourism based hotel industry CEOs and further 65employees from the same hotels. We found that the innovative and self renewal climates were positively correlated with employees’ innovative behaviour (P < 0.05). In addition, the relationship between organization climate with proactive climate and self renewal became stronger as proactive climate increased. Nevertheless the employee innovative behaviour became stronger as self renewal climate increased. Our study contributes to intrapreneurial research by highlighting the interactive effects of organizational climates on employee innovative behavior in the hotel industry.
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