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The influence of psychological capital on the growth intentions of entrepreneurs: A study on Malaysian SME entrepreneurs

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Hanafiah M. H. , Yousaf S. U. , Usman B.

Business and Economic Horizons

2017

tom Volume 13

nr Issue 5

556-569

Growth of entrepreneurial ventures plays important role in a country’s economic development and entrepreneurs’ growth intention is considered as an important predictor of their venture growth. On the other hand, Psychological capital (PsyCap) is one such resource which can influence attitudes and behaviours like growth intentions of entrepreneurs. This study is aimed to investigate the relationship between psychological capital and growth intentions of entrepreneurs specifically in Malaysian context. The data was collected from 275 Malaysian SME entrepreneurs and Regression analysis reveals that PsyCap, as a core construct, positively and significantly influences the growth intentions of entrepreneurs. Further, it is also identified that two out of four dimensions of PsyCap (hope and self-efficacy) have significant and positive influence on entrepreneurs’ growth intentions. It is also revealed that PsyCap, as a core construct, more powerfully predicts the growth intentions as compared to its first order constructs separately. This finding highlights the significance of PsyCap as a core construct in entrepreneurial researches. It contributes knowledge to psychological capital and entrepreneurship literature and also has implications for existing and prospective entrepreneurs as well as government and private bodies.