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The power of shared positivity: organizational psychological capital and firm performance during exogenous crises

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  • Ann-Christin Grözinger

    (University of Siegen)

  • Sven Wolff

    (University of Siegen)

  • Philipp Julian Ruf

    (University of Siegen)

  • Petra Moog

    (University of Siegen)

Abstract

This study examines the influence of organizational psychological capital on the performance of small and medium-sized companies (SMEs) during crises. We argue that SMEs use their intangible resources to cope with difficult situations such as the COVID-19 pandemic. Therefore, we investigate how organizational psychological capital impacts performance and creative innovation through such intangible resources, namely, organizational citizenship behavior, solidarity, and cooperation. Methodologically, we combine structural equation modelling and regression analysis on a dataset of 379 SMEs. Our results support the notion that organizational psychological capital positively influences creative innovation of SMEs and thus performance during crises. Our research contributes to the organizational behavior literature by showing that psychological resources of SMEs can strengthen performance in times of crisis and help to prepare for future ones.

Suggested Citation

  • Ann-Christin Grözinger & Sven Wolff & Philipp Julian Ruf & Petra Moog, 2022. "The power of shared positivity: organizational psychological capital and firm performance during exogenous crises," Small Business Economics, Springer, vol. 58(2), pages 689-716, February.
    • Handle: RePEc:kap:sbusec:v:58:y:2022:i:2:d:10.1007_s11187-021-00506-4
    DOI: 10.1007/s11187-021-00506-4
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    Cited by:

    1. Christopher J. Boudreaux & Anand Jha & Monica Escaleras, 2023. "Natural disasters, entrepreneurship activity, and the moderating role of country governance," Small Business Economics, Springer, vol. 60(4), pages 1483-1508, April.
    2. Andrew Chan & Francis Cheng & Shuk-Ling Cheng, 2023. "Post-Crisis Sustainable Performance of Manufacturing SMEs: The Roles of Positive Orientation, Financial Slack, and External Networks," Sustainability, MDPI, vol. 15(17), pages 1-18, August.
    3. Boudreaux, Christopher & Jha, Anand & Escaleras, Monica, 2022. "Natural Disasters and Entrepreneurship Activity: the Moderating Role of Country Governance," MPRA Paper 115134, University Library of Munich, Germany.
    4. Rebecca Alguera Kleine & Bingbing Ge & Alfredo Massis, 2024. "Look in to look out: strategy and family business identity during COVID-19," Small Business Economics, Springer, vol. 63(3), pages 993-1018, October.
    5. Constanze Eib & Claudia Bernhard-Oettel, 2024. "Entrepreneurial action and eudaimonic well-being in a crisis: Insights from entrepreneurs in Sweden during the COVID-19 pandemic," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 45(2), pages 335-362, May.

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