Purpose: The main purpose of the paper was to determine the moderating effect of interactional perceived organizational justice (IPOJ) on the relationship between financial idiosyncratic deals (I-deals) and innovative work behaviour (IWB) among tied life insurance sales agents in Kenya.
Methodology: The study is grounded on equity theory. Explanatory research design was employed with a target of 1954 tied life insurance agents from life insurance firms in Kenya. Simple random and stratified samplings were used to select 498 tied life insurance agents. Primary data was collected from structured questionnaires. Hierarchical moderated multiple regression was used to test the hypotheses.
Findings: The study findings showed a positive relationship between financial I-deals and IWB (?= 0.476, p< 0.05). Subsequently, when financial I-deals were moderated with IPOJ the findings indicated that there was a significant effect of financial I-deals (?= 0.272, ?= 0.02) interactions with IPOJ, hence presence of moderating effects on the same variables on IWB.
Implication: The study recommends that life insurance firms should be fair in motivating their employees through granting financial incentives I-deals to enhance IWB. Further research should focus on the moderating effect of POJ on the relationship between task and development I-deals and IWB.