Abstract
The study investigates the impact of psychological capital on the employees’ innovative behavior through the mediating effect of employees’ job satisfaction and employees’ innovative intention in the small and medium enterprises (SMEs) sector of Saudi Arabia. A sample of 204 respondents participated from various enterprises working without restricting specific sectors to check employees’ common behavior in multiple sectors. The data and hypotheses testing analysis were made with the partial least squares–based structural equation modeling (PLS-SEM). The study revealed that psychological capital positively affects employees’ job satisfaction, innovative behavior, and innovative intention. Furthermore, the employees’ job satisfaction also positively correlated with the employees’ innovative behavior, while there was no connection between the employees’ innovative intention and the employees’ innovative behavior. Concerning the indirect relationships, the findings revealed that employees’ job satisfaction played a partial mediating role between psychological capital and the employees’ innovative behavior. However, the employees’ innovative intention did not mediate the relationship between the psychological capital and the employees’ innovative behavior. These findings suggest the importance of psychological capital in influencing the innovative behavior of employees. Hence, there is a need to continue developing it among employees to ensure a better output.
Highlights
Due to globalization and continuous rapid business changes, many business enterprises have emerged to offer various products and services in the market, intensifying stiff competition in the market and forcing many to leave due to their inability to compete and sustain
This study evaluates the role of psychological capital on the employees’ innovative behavior in Saudi Arabia, considering the employees’ job satisfaction and the employees’ innovative intention as mediating factors for this analysis
The overall result of the study shows that the psychological capital, employees’ satisfaction, and employees’ innovative intention constructs predicted 45% of the variance in the employees’ innovative behavior
Summary
Due to globalization and continuous rapid business changes, many business enterprises have emerged to offer various products and services in the market, intensifying stiff competition in the market and forcing many to leave due to their inability to compete and sustain. We in this study apply the principles of the psychological capital in the stream of organizational behavior to understand the psychological strengths of SME employees as they were believed to act as a mental source for developing human capital and social capital It is to be concluded from the above discussion that psychological capital may play a vital role in developing the employees’ characteristics and capabilities that may positively affect their performance, satisfy them with their job, and motivate them toward innovation and creativity. Those employees with a high level of psychological capital tend to have a high level of confidence, ability to face challenges, determination to achieve their goals, and cheerfulness about the present and the future, which at last directs individuals to create a happy life and satisfying workplace This establishes innovative behavior toward new products and services for the organizations’ sustainability. Concerning the meditating effects, the employees’ job satisfaction and innovative behavior were assumed to mediate between the independent and dependent variables
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call