This study examines the relationship between the relational mode of leadership (i.e., inclusive leadership) and innovative work behavior with the mediating role of creative self-efficacy. Data were collected from employees of small and medium textile enterprises in Pakistan. Results show that there is a positive relationship between inclusive leadership and innovative work behavior. While aligned with previous research, the results of this study confirm the mediating role of creative self-efficacy in inclusive leadership-innovative work behavior relationships. Based on its findings, this study recommends that human resource (HR) managers prioritize the hiring of leaders possessing inclusive attributes such as openness, availability, and accessibility. Additionally, the results of this study indicate that, in order to successfully implement new changes, it is important that HR managers hire employees evidencing innovative work behavior in a work setting.