<p>Envy is a common social emotion that can shape interpersonal behavior and performance-related outcomes. This study examines how envy influences social dynamics and innovative engagement, focusing on its effects on negative word-of-mouth and ostracism. Drawing on survey data from 209 employees across public and private sector organizations, we employ partial least squares structural equation modeling (PLS-SEM), and multigroup PLS-SEM analysis to test the proposed relationships. The findings indicate that envy significantly increases negative interpersonal behaviors, including speaking negatively about others and excluding colleagues, which in turn reduces individuals’ engagement in innovative activities. These effects are consistent across organizational contexts, suggesting that the underlying psychological mechanisms are relatively stable. Building on these results, we introduce the concept of the <i>envy–innovation duality</i>, highlighting a cyclical dynamic in which innovation may trigger envy, while envy constrains subsequent innovation through social and emotional pathways. This study contributes to psychological research by advancing understanding of how negative emotions shape social interactions and behavioral outcomes in applied settings. The findings also provide insights into how organizations can mitigate the unintended social consequences of innovation.</p>