The effect of psychological capital on performance through the role of career engagement: Evidence from Indonesian public organizations

Abstract

This study aims at investigating the effect of Psychological Capital (PsyCap) on employees’ career engagement and performance in public service organisations in Indonesia. Using the Jobs Demands-Resources (JD-R) model, this study also examines the indirect effect of PsyCap on performance through the mediating role of career engagement. Participants were full-time employees from various public service organizations in Indonesia (e.g., schools). The study was advertised mainly via alumni network groups. After a three-phase data collection, 265 participants fully completed the study. The data were collected using Psychological Capital Questionnaire (PCQ), Career Engagement Scale (CES), and Individual Performance Scale (IPS) and analyzed using a Structural Equation Modeling (SEM) technique. This study found the positive effect of PsyCap on employees’ career engagement and performance. Career engagement positively mediated the indirect effect of PsyCap on employees’ performance. Drawing from the JD-R model and the work engagement perspective, this study postulated that PsyCap provided significant personal resources to help employees cope with demanding career-related activities. While employees engaged in career advancement activities, they also improved their performance. PsyCap provided the employees with psychological resources (e.g., self-efficacy) which were fruitful for their career engagement and performance. Career engagement, on the other hand, helped facilitate the effect of PsyCap on performance. This study is among a few studies that focus on investigating career engagement in public organizations. Discussion, implications, and future research directions are included.

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