This study analyzed the effect of workplace innovation on business performance and labor condition improvement. The study results showed that work process standardization and quality control positively affected business performance. Also, downsizing, reducing individual subcontract, expanding non-core business outsourcing positively affected both business performance and labor condition improvement. In addition, labor union's participation moderated the effect of work process innovation on business performance. This study provided implications for analyzing the effect of workplace innovation comprehensively and extending the scope of study to personal employee dimension.