PurposeThis study aims to investigate the effect of perceived insider status to employees' innovative behavior, the mediating role of knowledge sharing and the moderating role of organizational innovation climate in the relationship between knowledge sharing and employees' innovative behavior.Design/methodology/approachThis study adopted questionnaires to gather data. The sample of 341 employees working in diverse organizations in China was applied to examine the hypotheses.FindingsThe results indicate that perceived insider status is positively related to employees' innovative behavior and knowledge sharing mediates the relationship between perceived insider status and employees' innovative behavior. In addition, organizational innovation climate enhances the relationship of knowledge sharing and employees' innovative behavior.Originality/valueThis study builds a system from psychological aspect to behavior, which includes the mechanism of the influence of perceived insider status on employees' innovative behavior and a cross-level analysis of the influence of organizational innovation climate on employees' innovative behavior, breaking through the previous research paradigm of a single level of climate and employee behavior.