The Relationship Between Leaders' Psychological Capital and Organizational Outcomes: A Crossover Model

Abstract

The study investigated the potential role of human resources exemplified by leaders' psychological capital (PsyCap) as a resource that may cross over to team-member exchange (TMX), and bring about desired organizational outcomes. We suggest a model where TMX of senior management teams serves as a team resource mediating the relationship between leaders’ PsyCap and organizational outcomes, as represented by team innovation, organizational citizenship behavior (OCB), and employees’ job satisfaction. The study, carried out among 86 elementary and junior high schools, indicated a positive relationship between leaders’ PsyCap and TMX. In addition, we found a significant relationship between TMX and the three measures of organizational outcomes. Furthermore, TMX partially mediated the relationship between leaders’ PsyCap and the desired outcomes, excepting innovation. The findings provide support for the importance of the leaders’ personal resource of psychological capital as a complementary perspective that may enhance our understanding of leadership’s impact on organizational success. In addition, the study provides significant support for the expanded model, broadening the definition of the crossover model by examining the translation of positive resources from leaders' PsyCap to organizational outcomes via teams' positive resources. From a practical perspective, the findings bring to the forefront the importance of psychological capital as a state-like construct that can be developed through leader preparation and professional development programs.