THE MEDIATING EFFECT OF PSYCHOLOGICAL CAPITAL BETWEEN INTELLECTUAL CAPITAL AND ORGANIZATIONAL PERFORMANCE

Abstract

The present study highlighted the important contribution of the psychological resources of employees in organizational performance. The main focus of this research was to determine the mediation role of psychological capital between the relationship of intellectual capital and organizational performance with reference to the Pakistan’s software industry. Survey type of research was applied for data collection through a questionnaire. Convenience sampling technique was used for the selection of sample. A sample of 320 software developers from software companies registered with P@SHA participated in this research and the data was analyzed by applying descriptive and inferential statistics. Consistent with the previous literature correlation analysis of this research indicated that a significant association was present between the intellectual capital, psychological capital and organizational performance. Moreover, the regression analysis results confirmed that psychological capital mediates the association present between intellectual capital and organizational performance. It was concluded from results that insertion of psychological capital not only increased organizational performance but it also boosted the intellectual capital of employees. So, it was empirically confirmed that the development of psychological resources of employees has multiple positive impact on employees and organizational performance.