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The influence of psychological capital on the growth intentions of entrepreneurs: A study on Malaysian SME entrepreneurs

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  • Hizam-Hanafiah, Mohd.
  • Yousaf, Sheikh Usman
  • Usman, Bushra

Abstract

Growth of entrepreneurial ventures plays important role in a country’s economic development and entrepreneurs’ growth intention is considered as an important predictor of their venture growth. On the other hand, Psychological capital (PsyCap) is one such resource which can influence attitudes and behaviours like growth intentions of entrepreneurs. This study is aimed to investigate the relationship between psychological capital and growth intentions of entrepreneurs specifically in Malaysian context. The data was collected from 275 Malaysian SME entrepreneurs and Regression analysis reveals that PsyCap, as a core construct, positively and significantly influences the growth intentions of entrepreneurs. Further, it is also identified that two out of four dimensions of PsyCap (hope and self-efficacy) have significant and positive influence on entrepreneurs’ growth intentions. It is also revealed that PsyCap, as a core construct, more powerfully predicts the growth intentions as compared to its first order constructs separately. This finding highlights the significance of PsyCap as a core construct in entrepreneurial researches. It contributes knowledge to psychological capital and entrepreneurship literature and also has implications for existing and prospective entrepreneurs as well as government and private bodies.

Suggested Citation

  • Hizam-Hanafiah, Mohd. & Yousaf, Sheikh Usman & Usman, Bushra, 2017. "The influence of psychological capital on the growth intentions of entrepreneurs: A study on Malaysian SME entrepreneurs," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 13(5), December.
    • Handle: RePEc:ags:pdcbeh:285109
    DOI: 10.22004/ag.econ.285109
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    Cited by:

    1. Mariluz Fernández-Alles & Dara Hernández-Roque & Mercedes Villanueva-Flores & Mirta Díaz-Fernández, 2022. "The impact of human, social, and psychological capital on academic spin-off internationalization," Journal of International Entrepreneurship, Springer, vol. 20(3), pages 433-473, September.
    2. Joensuu-Salo, Sanna & Viljamaa, Anmari & Varamäki, Elina, 2019. "The Impact of Continuity Outlook and Development Activities on Growth Intentions," 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations (Dubrovnik, 2019), in: 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations. April 5th - 6th, 2019, Dubrovn, pages 388-399, Governance Research and Development Centre (CIRU), Zagreb.
    3. Kamila Urbańska & Agnieszka Parkitna, 2021. "Success of SME enterprises in the era of pandemics," WORking papers in Management Science (WORMS) WORMS/21/03, Department of Operations Research and Business Intelligence, Wroclaw University of Science and Technology.
    4. Kamila Urbanska & Agnieszka Parkitna & Joanna Kubicka, 2021. "Success of SMEs in the Era of Pandemics," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 407-423.

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    Keywords

    International Development;

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