**1. Introduction**

Innovation is a crucial determinant of organizational success in the contemporary business environment. It fosters a competitive edge, augments market share, and expedites overall institutional growth [1, 2]. Historically, the pathway to innovation has been primarily top-down, with strategic vision and novel ideas originating from management echelons or specialized departments like research and development. Recently, however, there has been a paradigm shift toward employee-driven innovation (EDI), an approach that challenges the conventional hierarchical methods and advocates a participatory bottom-up strategy, enabling employees at all levels to contribute to the ideation and innovation process [3, 4]. These employees, closely

linked with the organization's operational activities, bring forth valuable insights and innovative resolutions to business challenges [5, 6]. Thus, this burgeoning potential sets the stage for our research as we explore the impacts and phenomena of EDI initiatives at the micro (employee) and meso (organization) levels.

As a complementary innovation channel to existing innovation channels, EDI signifies a transition from conventional top-down methods and underscores the pivotal role "ordinary" employees—those not primarily engaged in innovation tasks play in ideation and innovation through their expertise, creativity, and knowledge [7, 8]. This concept has garnered substantial academic and practical interest due to its potential to harness collective intelligence and creativity within organizations [9]. The employees, deeply involved in the organization's daily operations, are aptly positioned to identify inefficiencies, opportunities, and potential improvements that could be overlooked in a hierarchical approach [10]. Furthermore, involving employees in the innovation process can yield additional benefits such as increased job satisfaction, motivation, and a sense of belonging and affiliation, fostering a virtuous cycle of (bottom-up) innovation [11]. Hence, EDI emerges as an instrumental concept in stimulating creativity, innovation, and positive workplace dynamics.

This research paper intends to scrutinize the effects of EDI, analyzing effect areas at both micro and meso levels. Specifically, our research question (RQ) is: "*What effect areas of employee-driven innovation occur on micro-level (employee-related) and meso-level (organization-related) in the literature, and how can they be described?"* For this purpose, we utilize a rigorous systematic literature review, supplemented by a concept matrix in accordance with Xiao and Watson [12] and Webster and Watson [13], referencing pertinent research articles from the EDI and related research fields. Our focus encompasses the effects of EDI on individual employees including motivation, job satisfaction, and personal development—and organizational effects, such as innovativeness and cultural evolution. The rationale for this approach stems from the fragmented research on EDI in single- or multiple-case studies or analytical methods on specific topics. While employee roles or digital tools have been researched, no synthesis yet provides a holistic account of EDI's multilevel effects. In theory, this approach facilitates concluding the prevailing narrative of EDI and possibly under-researched aspects. In practice, the identified effects provide a framework for organizations intending to implement EDI.

This research contributes to the existing body of EDI literature, providing a comprehensive synopsis of its effect areas on micro and meso levels. We intend to facilitate an understanding of how organizations can harness their employee potential in the innovation process, offering insights into the effects and phenomena recognized in academic and practical case studies of EDI. These effects are paramount for organizations developing EDI strategies. Overall, this research proffers insights for practitioners and researchers in the field of EDI and innovation management.
