Referring to the social exchange theory and to leader-member exchange theory, the purpose of this study is to investigate how inclusive leadership influences innovative work behavior by testing leader-member - exchange (LMX) as a mediator. A quantitative study was carried out in 10 service-based organizations in Lebanon with 187 subordinates and their supervisors. The data were analyzed using descriptive statistics, simple and multiple regression analysis. The findings indicated that inclusive leadership is positively associated with IWB and that LMX mediates the relationship between the two variables. This paper contributes in many ways. First, it provides further support to the importance of relational leadership in influencing behaviors within the organizations. Second, it contributes to the growing body of research on the relationship between inclusive leadership and innovative work behavior. Third, it helps to understand the mechanism of leader-member exchange through which inclusive leadership can influence innovative work behavior. These findings highlight the fact that human resource management and managers need to consider how high-quality leader-member exchanges based on communication, openness and trust can promote IWB. Finally, the limitations of the study are discussed as well as the indications for future studies.