It has been contended that violence is prevalent in the workplace, and there has been increasing research interest into its potential effects. Human interactions at workplaces are apparent. However, the interactions among humans may have positive or negative dimensions. Usually, the positive or negative interactions between workers lead to different outcomes. Sometimes, they lead to a productive working environment; however, in some cases, they lead to toxicity among workers. In this study, we investigate the impact of workplace violence (WV) on innovative work behavior (IWB). Specifically, it examines the impact of the three dimensions of WV, namely, harassment, mobbing, and sabotage. Moreover, employees’ wellbeing mediates the relationship between WV (harassment, mobbing, and sabotage) and IWB. A questionnaire survey approach was used in this study. The target population were the workers of SMEs entrepreneurs located in Guangdong Province (China). The results confirm that, in the direct relationship, WV (harassment, mobbing, and sabotage) has a negative relationship with innovative IWB. Moreover, results also confirm that employee wellbeing is mediated between WV (harassment, mobbing, and sabotage) and IWB. Therefore, the empirical results of this paper identify that workplace violence reduces employees’ innovative work behavior by reducing their subjective and eudemonic wellbeing, which further broadens the perspective of IWB’s motivation analysis. Practical implications for small and medium enterprise organizations have also been discussed in this paper.