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The effects of psychological capital and risk tolerance on service workers’ internal motivation for firm performance and entrepreneurship

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  • Joohee Kim

    (Bucheon University)

  • Yonghwi Noh

    (Myongji University)

Abstract

This study investigates how psychological capital and risk tolerance can inspire service workers to develop internal motivation and entrepreneurial confidence. Data were gathered from a survey of 255 service workers in the metropolitan area of Seoul, South Korea. The results showed that service workers’ psychological capital consisted of two main constructs: hopeful self-efficacy and optimistic resilience. The results indicated that hopeful self-efficacy had no significant effect on service workers’ internal motivation, while the optimistic resilience had a positive effect which in turn positively impacted entrepreneurial confidence. On the other hand, risk tolerance was found not to affect service workers’ internal motivation. These results imply that optimistic service workers, with recuperative powers, tended to be proactive in their work and have more confidence when establishing new ventures. They also suggest that service firms can improve organizational performance by promoting worker optimism and resilience. This study provides practical insights into why service firms should pay attention to worker optimism and resilience to improve firm performance over the long run, not only for the firms but for the national economy as a whole.

Suggested Citation

  • Joohee Kim & Yonghwi Noh, 2016. "The effects of psychological capital and risk tolerance on service workers’ internal motivation for firm performance and entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 12(3), pages 681-696, September.
    • Handle: RePEc:spr:intemj:v:12:y:2016:i:3:d:10.1007_s11365-015-0369-0
    DOI: 10.1007/s11365-015-0369-0
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    2. Kemal Kanısoy & Harun Şeşen & Mehmet Ali Ekemen, 2024. "Academic Intrapreneurs: Exploring the Antecedents of Academic Intrapreneurial Intention," Sustainability, MDPI, vol. 16(10), pages 1-18, May.
    3. Niklas Nolzen, 2018. "The concept of psychological capital: a comprehensive review," Management Review Quarterly, Springer, vol. 68(3), pages 237-277, August.
    4. Peter Seemann & Zuzana Štofková & Adela Poliaková & Vladimíra Biňasová & Erika Loučanová, 2024. "Coaching Approach as a Sustainable Means of Improving the Skills of Management Students," Administrative Sciences, MDPI, vol. 14(6), pages 1-16, May.
    5. Mary Monica Jiony & Tek Yew Lew & Daria Gom & Geoffrey Harvey Tanakinjal & Stephen Sondoh, 2021. "Influence of Cultural Intelligence and Psychological Capital on Service Quality: A Study of the Hotel Industry in Sabah, Malaysia," Sustainability, MDPI, vol. 13(19), pages 1-20, September.
    6. Taegoo Terry Kim & Osman M. Karatepe & Gyehee Lee, 2018. "Psychological contract breach and service innovation behavior: psychological capital as a mediator," Service Business, Springer;Pan-Pacific Business Association, vol. 12(2), pages 305-329, June.
    7. Himmet Karadal & Belal Hamed Taher Shneikat & A. Mohammad Abubakar & Omar Khalid Bhatti, 2021. "Immigrant Entrepreneurship: the Case of Turkish Entrepreneurs in the United States," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1574-1593, December.

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