Positive Psychological Capital and Its Impact on Employee Engagement and Job Satisfaction: A Case Study of Enterprise A in Hangzhou, China

Xixian Qiang

Journal of Psychology & Human Behavior, 2025, vol. 2, issue 1, 37-44

Abstract: Purpose: Extant research suggests that employees' positive psychological capital (PsyCap)-a higher‑order construct encompassing hope, self‑efficacy, optimism, and resilience-contributes to desirable attitudes and behaviors at work. Yet little is known about how PsyCap operates within the contemporary Chinese organizational context or the mechanisms through which it influences outcomes. This study examines the impact of Psychological Capital (PsyCap) on employee engagement and job satisfaction, and investigates the mediating role of engagement among employees of a private technology manufacturing firm in Hangzhou, Zhejiang Province. Design/methodology/approach Drawing on positive organizational behavior and resource‑based theories, we developed a cross‑sectional survey that was administered to 200 employees of Enterprise A. Valid data from 178 respondents (52 % male; mean age 29.4 years) were analyzed. PsyCap was assessed using the Psychological Capital Questionnaire (PCQ‑24), engagement with the Utrecht Work Engagement Scale, and job satisfaction with the Job Satisfaction Index. Descriptive statistics, confirmatory factor analyses, reliability tests, Pearson correlations, hierarchical regression models, and bootstrapped mediation analyses were employed. Findings: PsyCap was positively correlated with engagement (r = 0.56, p < 0.001) and job satisfaction (r = 0.49, p < 0.001), while engagement correlated positively with satisfaction (r = 0.60, p < 0.001). Regression analyses revealed that PsyCap significantly predicted engagement (β = 0.58, p < 0.001) and satisfaction (β = 0.42, p < 0.001); when engagement was included, the coefficient for PsyCap declined but remained significant, indicating partial mediation. Mediation tests confirmed that engagement accounted for 54 % of the total effect of PsyCap on satisfaction. Originality/value This research extends positive organizational behavior theory to an understudied cultural and industrial setting, demonstrating the cross‑cultural relevance of PsyCap and its pathways to engagement and satisfaction. By providing a detailed analysis of PsyCap's components and mechanisms in a Chinese organization, the study offers actionable insights for human resource practitioners seeking to enhance employee well‑being and performance. It also highlights practical strategies to develop PsyCap through training and organizational support, thus contributing to the literature on applied psychology and human resource management.

Keywords: positive psychological capital; employee engagement; job satisfaction; human resource management; positive organizational behavior; China (search for similar items in EconPapers)
Date: 2025
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