International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

Psychological Capital: Key to Entrepreneurial performance and Growth intentions

Author Affiliations

  • 1Graduate School of Business, University Kebangsaan Malaysia, Bangi, Selangor, MALAYSIA
  • 2 Hailey College of Banking and Finance, University of the Punjab, Lahore, PAKISTAN
  • 3 Faculty of Economics and Management, University Kebangsaan Malaysia, Bangi, Selangor, MALAYSIA

Int. Res. J. Social Sci., Volume 4, Issue (9), Pages 39-45, September,14 (2015)

Abstract

This paper highlights the importance and need of studying psychological capital in entrepreneurial context. It further presents some propositions regarding the influence of psychological capital on entrepreneurial performance and growth intentions. Modern entrepreneurs often operate in dynamic and competitive environment with minimal financial, social and human resources. Scarcity of traditional forms of resources and limited volitional control requires entrepreneurs to heavily rely on personal/psychological resources in their entrepreneurial endeavor. One such resource is psychological capital (PsyCap) which can equip entrepreneurs with believe that they: are more impervious to setbacks (resilience), can create their own success (efficacy and hope), will experience good things happen to them (optimism) and have strong behavioral control (efficacy). Thus, for entrepreneurs, PsyCap may serve as an important resource for performance improvement and future intentions (e.g. growth intention). This paper presents a review and calls for the research on the effects of psychological capital on performance and future growth intentions of entrepreneurs. This study has implications for the current and prospective entrepreneurs as well as government and private bodies working on regulating, developing, encouraging and enhancing entrepreneurship.

References

  1. Sexton D. and Smilor R., Entrepreneurship. Chicago, IL: Upstart Publishing Company (2000)
  2. Charandabi, E. S., and Bohlooli, N. Investigation and Prioritizing the Key Factors of Success in Small and Medium Size Enterprises, Res. J. Recent Sci., 3(2), 31-34 (2014)
  3. Estrin S., Korosteleva J. and Mickiewicz T., Which institutions encourage entrepreneurial growth aspirations?, Journal of Business Venturing, 28(4), 564-580 (2013)
  4. Shaikh A.B., Sarim M., Raffat S.K., Siddiq M., Nadeem A. and Ahsan K., Integrating Entrepreneurship into the Teaching of IT, Res. J. Recent Sci., 3(6), 112-115 (2014)
  5. Delmar F., Davidsson P. and Gartner W.B., Arriving at the high-growth firm, Journal of business venturing, 18(2), 189-216 (2003)
  6. Masomi1 E., Derakhshan asl, M., Eghdami, A., Ashore, S., and Ghanimat, P. The Study of Corporate Entrepreneurship and its Relationship with job satisfaction: The Case Study: Sepah Bank, branches of Golestan Province, Res. J. Recent Sci., 3(3), 104-111 (2014)
  7. Acs, Z. and D. Evans. Entrepreneurship and Small Business Growth: A Case Study, in Advances in the Study of Entrepreneurship, Innovation and Economic Growth: New Learning on Entrepreneurship, Volume 6. Ed. G. Libecap, Greenwich, CT: JAI Press, 143176 (1993)
  8. Verheul I. and Van Mil L., What determines the growth ambition of Dutch early-stage entrepreneurs?, International Journal of Entrepreneurial Venturing, 3(2), 183-207 (2011)
  9. Wiklund J. and Shepherd D., Aspiring for, and Achieving Growth: The Moderating Role of Resources and Opportuniti. Journal of management studies, 40(8), 1919-1941 (2003)
  10. Delmar F., Entrepreneurial Behavior and Business Performance, (Doctoral Dissertation) Stockholm: Stockholm School of Economics (1996)
  11. Kolvereid L., Growth aspirations among Norwegian entrepreneurs, Journal of Business Venturing, 7(3), 209-222 (1992)
  12. Ajzen I., The theory of planned behavior, Organizational behavior and human decision processes, 50(2), 179-211 (1991)
  13. Bird B., Implementing entrepreneurial ideas: The case for intention, Academy of management Review, 13(3), 442-453 (1988)
  14. Delmar F. and Wiklund J., The effect of small business managers growth motivation on firm growth: A longitudinal study, Entrepreneurship Theory and Practice, 32(3), 437-457 (2008)
  15. Atazadeh Y., Ghahfarkhi S.H., Rezaei K. and Karimi M., Interactive Relationship between the Dimensions of Social Capital and Entrepreneurial Orientation with Respect to the Characteristics Approach (Case Study: City of Tabriz, Iran), Res. J. Recent Sci., 3(4), 112-120 (2014)
  16. Luthans F. and Youssef C.M., Human, Social, and Now Positive Psychological Capital Management:: Investing in People for Competitive Advantage, Organizational dynamics, 33(2), 143-160 (2004)
  17. Jensen S.M. and Luthans F., Entrepreneurs as authentic leaders: impact on employees' attitudes, Leadership and Organization Development Journal, 27(8), 646-666 (2006)
  18. Avey J.B., Reichard R.J., Luthans F. and Mhatre K.H., Meta‐analysis of the impact of positive psychological capital on employee attitudes, behaviors, and performance, Human resource development quarterly, 22(2), 127-152 (2011)
  19. Hmieleski K.M. and Carr J.C., The relationship between entrepreneur psychological capital and new venture performance, Frontiers of Entrepreneurship Research, 28(4), 1 (2008)
  20. Avey J.B., Wernsing T.S. and Luthans F., Can positive employees help positive organizational change? Impact of psychological capital and emotions on relevant attitudes and behaviors, The Journal of Applied Behavioral Science, 44(1), 48-70 (2008)
  21. Beal III L., Stavros J.M. and Cole M.L., Effect of psychological capital and resistance to change on organisational citizenship behavior, SA Journal of Industrial Psychology, 39(2), 01-11 (2013)
  22. Angelle P.S., Instructional leadership and monitoring: Increasing teacher intent to stay through socialization, NASSP Bulletin, 90(4), 318-334 (2006)
  23. Eagly A.H. and Chaiken S., The Psychology of Attitudes. Orlando, FLA: Harcourt Brace Jovanovich (1993)
  24. Greve W., Traps and gaps in action explanation: Theoretical problems of a psychology of human action, Psychological review, 108(2), 435 (2001)
  25. Fitzsimmons J.R. and Douglas E.J., Interaction between feasibility and desirability in the formation of entrepreneurial intentions, Journal of Business Venturing, 26(4), 431-440 (2011)
  26. Sadler-Smith E., Hampson Y., Chaston I. and Badger B., Managerial behavior, entrepreneurial style, and small firm performance, Journal of Small Business Management 41(1), 4767 (2003)
  27. Krueger Jr N.F., Reilly M.D. and Carsrud A.L., Competing models of entrepreneurial intentions, Journal of business venturing, 15(5), 411-432 (2000)
  28. Murphy G.B., Trailer J.W. and Hill R.C., Measuring performance in entrepreneurship research, Journal of business research, 36(1), 15-23 (1996)
  29. Wiklund J. and Shepherd D., Entrepreneurial orientation and small business performance: a configurational approach, Journal of business venturing, 20(1), 71-91 (2005)
  30. Audretsch D., Entrepreneurship research, Management Decision, 50(5), 755-764 (2012)
  31. Acs Z.J. and Audretsch D.B., Innovation and small firms. Mit Press. (1990)
  32. Chandler G.N. and Hanks S.H., Measuring the performance of emerging businesses: A validation study, Journal of Business Venturing 8, 391-408 (1993)
  33. Kirchhoff B.A., Commentary (on strategy evaluation). In D. Schendel and C.W. Hofer, eds., Strategic Management: A New View of Business Policy and Planning. Boston: Little, Brown (1979)
  34. Seligman M.E. The presidents address, American psychologist, 54(8), 559-562 (1999)
  35. Seligman M.E., Authentic Happiness. New York: Free Press (2002)
  36. Luthans F., Positive organizational behavior: Developing and managing psychological strengths, The Academy of Management Executive, 16(1), 57-72 (2002a)
  37. Luthans F., The need for and meaning of positive organizational behavior, Journal of organizational behavior, 23(6), 695-706 (2002b)
  38. Luthans F., Youssef C.M. and Avolio B.J., Psychological capital: Developing the human competitive edge. Oxford University Press (2007)
  39. Snyder C.R., Irving L.M. and Anderson J.R., Hope and health, Handbook of social and clinical psychology: The health perspective, 285-305 (1991)
  40. Seligman M.E., Learned Optimism. New York: Pocket Books (1998)
  41. Vijayshri. Optimistic and Pessimistic Attitude Influencing Depressive Symptoms in Old Age, Int. Res. J. Social Sci., 4(5), 52-58 (2015)
  42. Masten A.S., Ordinary magic: Resilience processes in development, American psychologist, 56(3), 227 (2001)
  43. Bandura A., Self-Efficacy: The Exercise of Control. New York: W. H. Freeman (1997)
  44. Bandura A., Social learning theory, Englewood Cliffs, NJ: Prentice-Hall (1977b)
  45. Stajkovic A.D. and Luthans F., Social cognitive theory and self-efficacy: Going beyond traditional motivational and behavioral approaches, Organizational Dynamics, 26, 62-74 (1998b)
  46. Seligman M.E., Learned Optimism, New York: Knopf (1990)
  47. Carver C.S., Scheier M.F., Miller C.J. and Fulford D., Optimism. In Oxford Handbook of Positive Psychology, 2nd Edition (pp. 303-311). Oxford: Oxford University Press (2009)
  48. Bandura A., Self-efficacy: toward a unifying theory of behavioral change, Psychological review, 84(2), 191-215 (1977a)
  49. Luthans F., Avolio B.J., Walumbwa F.O. and Li W., The psychological capital of Chinese workers: Exploring the relationship with performance, Management and Organization Review, 1(2), 249-271 (2005)
  50. Larson M.D. and Luthans F., Potential added value of psychological capital in predicting work attitudes, Journal of Leadership and Organizational Studies, 13(2), 7592 (2006)
  51. Hmieleski K.M. and Corbett A.C., A Study of Entrepreneur Improvisational Behavior: Implications for Performance and Satisfaction, Paper presented at the Academy of Management Conference in Atlanta, GA (2006)
  52. Johnson A.R. and Delmar F., The psychology of entrepreneurs: a self-regulation perspective, Historical Foundations of Entrepreneurship Research, 289 (2010)
  53. Hobfoll S.E., Social and psychological resources and adaptation, Review of general psychology, 6(4), 307-324 (2002)
  54. Bandura A. Personal and collective efficacy in human adaptation and change, Advances in psychological science, 1, 51-71 (1998)
  55. Snyder C.R., Hope theory: Rainbows in the mind, Psychological Inquiry, 13(4), 249-275 (2002)
  56. Avey J.B., Luthans F., Smith R.M. and Palmer N.F. Impact of positive psychological capital on employee well-being over time, Journal of occupational health psychology, 15(1), 1728 (2010)
  57. Youssef C.M. and Luthans F., An integrated model of psychological capital in the workplace, Oxford handbook of positive psychology and work, 277-288 (2010)
  58. Bergheim K., Nielsen M.B., Mearns K. and Eid J., The relationship between psychological capital, job satisfaction, and safety perceptions in the maritime industry, Safety science 74, 27-36 (2015)
  59. Baron R.A., Franklin R.J. and Hmieleski K.M., Why Entrepreneurs Often Experience Low, Not High, Levels of Stress The Joint Effects of Selection and Psychological Capital, Journal of Management, 20(10), 1-27 (2013)
  60. Hmieleski K.M. and Carr J.C., The relationship between entrepreneur psychological capital and new venture performance, Frontiers of Entrepreneurship Research, 28(4), 1 (2008)
  61. Hmieleski K.M. and Carr J.C., The relationship between entrepreneur psychological capital and well-being, Frontiers of Entrepreneurship Research, 27(5), 3 (2007)
  62. Roche M., Haar J.M. and Luthans F., The role of mindfulness and psychological capital on the well-being of leaders, Journal of occupational health psychology, 19(4), 476 (2014)
  63. Drnovek M., Patel P.C. and Cardon M.S., Entrepreneurs psychological capital and venture growth: testing the goal mediated relationships, Frontiers of Entrepreneurship Research, 32(6), 1-15 (2012)
  64. Luthans F., Avey J.B., Avolio B.J., Norman S.M. and Combs G.M. Psychological capital development: toward a micro‐intervention, Journal of Organizational Behavior, 27(3), 387-393 (2006)