Psychological Capital as a Predictor of Employee Engagement: Evidence from Cognitive, Emotional, and Physical Dimensions

Authors

  • Altanchimeg Zanabazar National University of Mongolia image/svg+xml Author
  • Gerelchimeg Jamyansuren Author

DOI:

https://doi.org/10.51137/wrp.ijarbm.677

Keywords:

Psychological Capital, Employee Engagement, Job Demands–Resources Model, Military Organizations

Abstract

This study examines the component level relationships between Psychological Capital (PsyCap), comprising self-efficacy, hope, optimism, and resilience, and the cognitive, emotional, and physical dimensions of employee engagement in a military organizational context. The study addresses three gaps in the literature: the predominant operationalization of PsyCap as a unidimensional composite, the treatment of engagement as a single dimensional construct, and the scarcity of evidence from high demand institutional settings. A cross sectional survey was conducted with 658 military personnel from the border guard service across five units, with 57.4 percent male participants. PsyCap was measured using the 12 item PCQ Self Rater Short Version (α = 0.85) and engagement using the 18 item Job Engagement Scale (α = 0.86). Structural validity was confirmed via confirmatory factor analysis (KMO = .914; NFI = 0.968; SRMR = 0.064). Hypotheses were tested using PLS SEM (SmartPLS 4.1.1.2), with discriminant validity assessed via the Fornell Larcker criterion and common method bias evaluated using Harman's single factor test (34.2 percent, below the 50 percent threshold). All twelve hypothesized paths (H1a to H4c) were supported (p < .01). The model explained 55.6 percent, 47.9 percent, and 38.6 percent of variance in cognitive, physical, and emotional engagement, respectively. Differential patterns emerged: hope showed the strongest association with emotional engagement (β = 0.687), resilience with physical engagement (β = 0.634), optimism with cognitive engagement (β = 0.595), and self-efficacy produced uniform effects across all three dimensions (β = 0.297 to 0.632). This study is among the first to examine PsyCap engagement relationships at the component level in a military context. The findings extend the Job Demands Resources model by demonstrating that distinct PsyCap resources activate engagement through qualitatively different psychological pathways, providing evidence-based guidance for targeted psychological capital development in high demand organizational environments.

References

Aguirre-Urreta, M., & Hu, J. (2019). Detecting Common Method Bias: Performance of the Harman's Single-Factor Test. Data Base for Advances in Information Systems, 50(2), 45–70. https://doi.org/10.1145/3330472.333047

Alessandri, G., Consiglio, C., Luthans, F., & Borgogni, L. (2018). Testing a dynamic model of the impact of psychological capital on work engagement and job performance. The Career Development International, 23(1), 33–47. https://doi.org/10.1108/CDI-11-20

Avey, J. B., & Holley, E. (2024). Architecting human resource management systems with positive psychological capital. Organizational Dynamics, 53(4), 101082. https://doi.org/10.1016/j.orgdyn.2024.101082

Avey, J. B., Reichard, R. J., Luthans, F., & Mhatre, K. H. (2011). Meta-analysis of the impact of positive psychological capital on employee attitudes, behaviors, and performance. Human Resource Development Quarterly, 22(2), 127–152. https://doi.org/10.1002/hrdq.20070

Bakker, A. B., & Demerouti, E. (2017). Job demands–resources theory: Taking stock and looking forward. Journal of Occupational Health Psychology, 22(3), 273–285. https://doi.org/10.1037/ocp0000056

Bakker, A. B., Albrecht, S. L., & Leiter, M. P. (2011). Key questions regarding work engagement. European Journal of Work and Organizational Psychology, 20(1), 4–28. https://doi.org/10.1080/1359432X.2010.485352

Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change. Psychological Review, 84(2), 191–215. https://doi.org/10.1037/0033-295X.84.2.191

Barua, B., Islam, M. M., Kibria, H., & Barua, R. (2025). Analysis of creativity at the workplace through employee empowerment. International Journal of Organizational Analysis, 33(8), 2547–2572. https://doi.org/10.1108/IJOA-05-2024-4534

Biswal, K., Srivastava, K. B., & Alli, S. F. (2023). Psychological Capital and Work Engagement: Moderating Role of Social Relationships. Annals of Neurosciences, 32(2), 108–116. https://doi.org/10.1177/09727531231198964

Daswati, D., Wirawan, H., Hattab, S., Salam, R., & Iskandar, A. S. (2022). The effect of psychological capital on performance through the role of career engagement: Evidence from Indonesian public organizations. Cogent Social Sciences, 8(1), 2012971. https://doi.org/10.1080/23311886.2021.2012971

Datu, J. A., King, R. B., & Valdez, J. P. (2016). Psychological capital bolsters motivation, engagement, and achievement: Cross-sectional and longitudinal studies. The Journal of Positive Psychology, 13(3), 260–270. https://doi.org/10.1080/17439760.2016.1257056

Donaldson, S. I., & Villalobos, J. (2024). Positive mindset: PsyCap’s roles in PERMA+4 and positive organizational psychology, behavior, and scholarship 2.0. Organizational Dynamics, 53(4), 101084. https://doi.org/10.1016/j.orgdyn.2024.101084

Endres, G. M., & Mancheno-Smoak, L. (2008). The human resource craze: Human performance improvement and employee engagement. Organization Development Journal, 26(1) , 69–78. https://doi.org/10.1108/sd.2008.05624had.007

Frank, F. D., Finnegan, R. F., & Taylor, C. F. (2004). The Race for Talent: Retaining and Engaging Workers in the 21st Century. Human Resource Planning, 27(3), 12–25.

Fuller, C. M., Simmering, M. J., Atinc, G., Atinc, Y., & Babin, B. J. (2016). Common methods variance detection in business research. Journal of Business Research, 69(8), 3192–3198. https://doi.org/10.1016/j.jbusres.2015.12.008

Giancaspro, M. L., Callea, A., & Manuti, A. (2022). “I Like It like That”: A Study on the Relationship between Psychological Capital, Work Engagement and Extra-Role Behavior. Sustainability, 14(4). https://doi.org/10.3390/su14042022

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to Use and How to Report the Results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8

Hu, L.-t., & Bentler, P. M. (1998). Fit indices in covariance structure modeling: Sensitivity to underparameterized model misspecification. Psychological Methods, 3(4), 424–453. https://doi.org/10.1037/1082-989X.3.4.424

Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal,33(4), 692–724. https://doi.org/10.2307/256287

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610. https://doi.org/10.1177/001316447003000308

Kutner, M. H., Neter, J., Nachtsheim, C. J., & Li, W. (2004). Applied linear statistical models (4th ed.). New York: McGraw- Hill Irwin.

Luthans, F. (2002). The need for and meaning of positive organization behavior. Journal of Organizational Behavior, 23(6), 695–706. https://doi.org/10.1002/job.165

Luthans, F., & Youssef, C. M. (2004). Human, Social, and Now Positive Psychological Capital Management: Investing in people for competitive advantage. Organizational Dynamics, 33(2), 143–160. https://doi.org/10.1016/j.orgdyn.2004.01.003

Luthans, F., & Youssef-Morgan, C. M. (2017). Psychological capital: An evidence-based positive approach. Annual Review of Organizational Psychology and Organizational Behavior, 4, 339–366. https://doi.org/10.1146/annurev-orgpsych-032516-113324

Luthans, F., Avolio, B. J., Avey, J. B., & Norman, S. M. (2007). Positive Psychological Capital: Measurement and Relationship with performance and satisfaction. Personnel Psychology, 60(3), 541–572. https://doi.org/10.1111/j.1744-6570.2007.00083.x

Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological Capital: Developing the human capital edge. Oxford, England: Oxford University Press. https://doi.org/10.1002/hrdq.20034

Macey, W. H., & Schneider, B. (2008). The Meaning of Employee Engagement. Industrial and Organizational Psychology, 1(1), 3–30. https://doi.org/10.1111/j.1754-9434.2007.0002.x

Masten, A. S., & Reed, M. G. (2002). Resilience in development. In C. R. Snyder, & S. J. Lopez (Eds.), Handbook of positive psychology (pp. 74–88). Oxford University Press.

Newman, A., Ucbasaran, D., Zhu, F., & Hirst, G. (2014). Psychological capital: A review and synthesis. The IRIOP Annual Review Issue, 35(S1), S120–S138. https://doi.org/10.1002/job.1916

Newman, N., Fletcher, R., Eddy, K., Robertson, C. T., & Nielsen, R. K. (2023). Reuters Institute digitalnews report. Oxford University.

Nunnally, J. (1978). Authors should use the forms shown in Table 3 in the final reference list. New York: McGraw-Hil.

Pett, M. A., Lackey, N. R., & Sullivan, J. J. (2003). Making Sense of Factor Analysis: The Use of Factor Analysis for Instrument Development in Health Care Research. London, England: SAGE Publications, Inc.

Rego, A., Sousa, F., Marques, C., & E Cunha, M. P. (2012). Authentic Leadership Promoting Employees’ Psychological Capital and Creativity. Journal of Business Research, 65(3), 429–437. https://doi.org/10.1016/j.jbusres.2011.10.003

Rich, B. L., LePine, J. A., & Crawford, E. R. (2010). Job engagement: Antecedents and effects on job performance. Academy of Management Journal, 53(3), 617–635. https://doi.org/10.5465/AMJ.2010.51468988

Richman, A. L., Civian, J. T., Shannon, L. L., Jeffrey Hill, E., & Brennan, R. T. (2008). The Relationship of Perceived Flexibility, Supportive Work-Life Policies, and Use of Formal Flexible Arrangements and Occasional Flexibility to Employee Engagement and Expected Retention. Community Work & Family, 11(2), 183–197. https://doi.org/10.1080/13668800802050350

Ringle, C. M., Sarstedt, M., & Straub, D. W. (2012). A Critical Look at the Use of PLS-SEM in MIS Quarterly. MIS Quarterly (MISQ), 36(1), iii-xiv. https://doi.org/10.2307/41410402

Saks, A. M. (2022). Caring human resources management and employee engagement. Human Resource Management Review, 32(3), 1–15. https://doi.org/10.1016/j.hrmr.2021.100835

Saleem, M. S., Isha, A. S., Yusop, Y. M., Awan, M. I., & Naji, G. M. (2022). The Role of Psychological Capital and Work Engagement in Enhancing Construction Workers' Safety Behavior. Frontiers in Public Health, 10, 810145. https://doi.org/10.3389/fpubh.2022.810145

Seligman, M. E., Rashid, T., & Parks, A. C. (2006). Positive Psychotherapy. American Psychologist, 61(8), 774–788. https://doi.org/10.1037/0003-066X.61.8.774

Snyder, C. R., & Lopez, S. J. (2002). Handbook of positive psychology. Oxford University Press.

Snyder, C. R., Harris, C., Anderson, J. R., Holleran, S. A., Irving, L. M., Sigmon, S. T., Yoshinobu, L., Gibb, J., Langelle, C., Harney, P. (1991). The will and the ways: Development and validation of an individual-differences measure of hope. ournal of Personality and Social Psychology, 60(4), 570–585. https://doi.org/10.1037/0022-3514.60.4.570

Xanthopoulou, D., Bakker, A. B., Demerouti, E., & Schaufeli, W. B. (2009). Work engagement and financial returns: A diary study on the role of job and personal resources. Journal of Occupational and Organizational Psychology, 82(1), 183–200. https://doi.org/10.1348/096317908X285633

Downloads

Published

2026-05-08

Issue

Section

Original Research Paper

How to Cite

Zanabazar, A., & Jamyansuren, G. (2026). Psychological Capital as a Predictor of Employee Engagement: Evidence from Cognitive, Emotional, and Physical Dimensions. International Journal of Applied Research in Business and Management, 7(5). https://doi.org/10.51137/wrp.ijarbm.677