In today's business landscape, innovation plays a crucial role in enabling organisations to swiftly adapt to economic fluctuations amidst intense global competition. However, there is a scarcity of studies in Vietnam that investigate this issue in relation to human psychological factors. This study examines the potential mediating role of intrinsic motivation (IMO) in the relationship between psychological capital (CAP), perceived autonomy support (PAS), and individual innovation (IIN) within an educational setting. The research project consists of two stages: a pilot study and a main survey. The purpose of the pilot study is to assess the reliability of the scale, while the main survey aims to test the theoretical model. A convenience sample of 440 lecturers currently teaching at universities in the South of Vietnam was collected for the main research. The findings of the structural model testing show that IMO partially mediates the relationship between CAP, PAS, and IIN. All hypotheses were supported at a significance level of 5%. The study's findings have implications for managers in the education sector in Vietnam. Specifically, managers can promote the innovation of university lecturers by influencing their psychological capital. Furthermore, educational managers can foster a highly autonomous working environment, promoting a positive mindset among lecturers when engaging in challenging tasks.