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The current business environment characterized by high uncertainty, volatility, and stiff situation of competitiveness that is evident in almost every sector has increased the importance of workplace innovation for contemporary businesses. In this regard, a considerable attention in realizing employees of an organization as a source of innovation is not evident from the existing literature. In this aspect, the current study is an attempt to foster workplace innovation through employees in the SME sector of an emerging economy. In doing so, the authors propose that corporate social responsibility (CSR) initiatives of an SME, along with workplace autonomy, are helpful in creating an environment at the workplace that fosters innovative employee behavior (IEB). Furthermore, the current study also extends the boundary condition of the theory of self-determination by arguing that this theory provides a comprehensive framework to explain employees’ motivation for workplace innovation. The data of the current survey was obtained from the SME sector situated in two large cities of a developing country through a self-administered questionnaire which was then analyzed through structural-equation-modeling (SEM) using the AMOS software. The results confirmed that CSR directly relates to IEB and workplace autonomy mediates this relationship. The study also discusses the implications of this survey for theory and practice.