Skip to main content
SpringerLink
Log in

The effects of psychological capital and risk tolerance on service workers’ internal motivation for firm performance and entrepreneurship

  • Published:
International Entrepreneurship and Management Journal Aims and scope Submit manuscript

Abstract

This study investigates how psychological capital and risk tolerance can inspire service workers to develop internal motivation and entrepreneurial confidence. Data were gathered from a survey of 255 service workers in the metropolitan area of Seoul, South Korea. The results showed that service workers’ psychological capital consisted of two main constructs: hopeful self-efficacy and optimistic resilience. The results indicated that hopeful self-efficacy had no significant effect on service workers’ internal motivation, while the optimistic resilience had a positive effect which in turn positively impacted entrepreneurial confidence. On the other hand, risk tolerance was found not to affect service workers’ internal motivation. These results imply that optimistic service workers, with recuperative powers, tended to be proactive in their work and have more confidence when establishing new ventures. They also suggest that service firms can improve organizational performance by promoting worker optimism and resilience. This study provides practical insights into why service firms should pay attention to worker optimism and resilience to improve firm performance over the long run, not only for the firms but for the national economy as a whole.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Acs, Z. J., Carlsson, B., & Karlsson, C. (1999). The linkages among entrepreneurship, SMEs and the macroeconomy. Cambridge: Cambridge University Press.

    Google Scholar 

  • An, M., & Noh, Y. (2011). Service-orientation of airlines: its impact on service-oriented behavior of flight attendants and customer loyalty. International Journal of Services Sciences, 4(2), 174–190.

    Article  Google Scholar 

  • Arroyo-Vázquez, M., van der Sijde, P., & Jiménez-Sáez, F. (2010). Innovative and creative entrepreneurship support services at universities. Service Business, 4(1), 63–76.

    Article  Google Scholar 

  • Ashforth, B., & Humphrey, R. (1993). Emotional labor in service role: the influence of identity. Academy of Management Review, 18, 88–115.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • Avloniti, A., Latridou, A., Kaloupsis, L., & Vozikis, G. (2014). Sibling rivalry: implications for the family business succession process. International Entrepreneurship and Management Journal, 10(4), 661–678.

    Article  Google Scholar 

  • Baldwin, J. R. (1995). The dynamics of industrial competition. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Bandura, A. (1997). Self-efficacy: The exercise of control. New York: Freeman.

    Google Scholar 

  • Brislin, R. W., Lonner, W. J., & Thorndike, R. M. (1973). Cross-cultural research methods. New York: Wiley.

    Google Scholar 

  • Brockner, J., Higgins, E. T., & Low, M. B. (2004). Regulatory focus theory and the entrepreneurial process. Journal of Business Venturing, 19(2), 203–220.

    Article  Google Scholar 

  • Brush, C. (1998). A resource perspective on women’s entrepreneurship: Research, relevance, and recognition. In OECD’s Women Entrepreneurs in Small and Medium Enterprises (pp. 155–168), Paris.

  • Cameron, K. S., Bright, D., & Caza, A. (2004). Exploring the relationships between organizational virtuousness and performance. American Behavioral Scientist, 47, 766–790.

    Article  Google Scholar 

  • Chang, H., Tsai, K., & Peng, C. (2014). The entrepreneurial process: an integrated model. International Entrepreneurship and Management Journal, 10(4), 727–745.

    Article  Google Scholar 

  • Clifton, J. (2011). The coming jobs war. New York: Gallup Press.

    Google Scholar 

  • Davies, J., & Easterby-Smith, M. (1984). Learning and developing from managerial work experiences. Journal of Management Studies, 21, 169–183.

    Article  Google Scholar 

  • De Pater, I., Van Vianen, A. E., Bechtoldt, M. N., & Klehe, U. (2009). Employees’ challenging job experiences and supervisors’ evaluations of promotability. Personnel Psychology, 62, 297–325.

    Article  Google Scholar 

  • Evans, D., & Jovanovic, B. (1989). An estimated model of entrepreneurial choice under liquidity constraints. Journal of Political Economy, 97, 808–827.

    Article  Google Scholar 

  • Forbes, D. P. (2005). Are some entrepreneurs more overconfident than others? Journal of Business Venturing, 20(5), 623–640.

    Article  Google Scholar 

  • Gist, M. E. (1987). Self-efficacy: implications for organizational behavior and human resource management. Academy of Management Review, 12, 472–485.

    Google Scholar 

  • Gist, M. E., & Mitchell, T. R. (1992). Self-efficacy: a theoretical analysis of its determinants and malleability. Academy of Management Review, 17(2), 183–211.

    Google Scholar 

  • Hamilton, B. H. (2000). Does entrepreneurship pay? An empirical analysis of the returns to self-employment. Journal of Political Economy, 108, 604–631.

    Article  Google Scholar 

  • Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit level relationship between employee satisfaction, employee engagement, and business outcomes: a meta-analysis. Journal of Applied Psychology, 87(2), 268–279.

    Article  Google Scholar 

  • Hayward, M. L. A., Shepherd, D. A., & Griffin, D. (2006). A hubris theory of entrepreneurship. Management Science, 52(2), 160–172.

    Article  Google Scholar 

  • Kihlstrom, R., & Laffont, J. (1979). A general equilibrium entrepreneurial theory of firm formation based on risk aversion. Journal of Political Economy, 87, 719–740.

    Article  Google Scholar 

  • Kline, R. B. (1998). Principles and practices of structural equation modeling. New York: The Guildford Press.

    Google Scholar 

  • Koellinger, P., Minniti, M., & Schade, C. (2007). “I think I can, I think I can”: overconfidence and entrepreneurial behavior. Journal of Economic Psychology, 28, 502–527.

    Article  Google Scholar 

  • Korea Times (2015). http://www.hankookilbo.com/v/98b93f08d1a3473ca964ed9cd40c1ab4. May 13th, 2015.

  • Krueger, N. J., & Brazeal, D. (1994). Entrepreneurial potential and potential entrepreneurs. Entrepreneurship: Theory and Practice, 18, 91–104.

    Google Scholar 

  • Lee, S. M., & Peterson, S. J. (2001). Culture, entrepreneurial orientation, and global competitiveness. Journal of World Business, 35(4), 401–416.

    Article  Google Scholar 

  • Lee, C., An, M., & Noh, Y. (2012). The social dimension of service workers’ job satisfaction: the perspective of flight attendants. Journal of Service Science and Management, 5(2), 160–170.

    Article  Google Scholar 

  • Lee, C., An, M., & Noh, Y. (2014a). The effects of emotional display rules on flight attendants’ emotional labor strategy, job burnout and performance. Service Business, Published online. doi:10.1007/s11628-014-0231-4.

  • Lee, S. M., Noh, Y., Choi, D., & Rha, J. (2014b). The effect of ISO 14001 on equity structure. Industrial Management & Data Systems, 114(6), 979–991.

    Article  Google Scholar 

  • Levesque, M., & Minniti, M. (2006). The effect of aging on entrepreneurial behavior. Journal of Business Venturing, 21(2), 177–194.

    Article  Google Scholar 

  • Litt, M. D., Tennen, H., Affleck, G., & Klock, S. (1992). Coping and cognitive factors in adaptation to in vitro fertilization failure. Journal of Behavioral Medicine, 15, 171–187.

    Article  Google Scholar 

  • Lounsbury, J. W., Steel, R. P., Loveland, J. M., & Gibson, L. W. (2004). An investigation of personality traits in relation to adolescent school absenteeism. Journal of Youth and Adolescence, 33(5), 457.

    Article  Google Scholar 

  • Luthans, F. (2002). The need for and meaning of positive organizational behavior. Journal of Organizational Behavior, 23(6), 695–706.

    Article  Google Scholar 

  • Luthans, F., & Youssef, C. M. (2004). Human, social, and now positive psychological capital management. Organizational Dynamics, 33, 143–160.

    Article  Google Scholar 

  • Luthans, F., Luthans, K. W., & Luthans, B. C. (2004). Positive psychological capital: beyond human and social capital. Business Horizons, 47(1), 45–50.

    Article  Google Scholar 

  • Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological capital: Developing the human competitive edge. Oxford: Oxford University Press.

    Google Scholar 

  • Luthans, F., Avey, J. B., Avolio, B. J., & Peterson, S. J. (2010). The development and resulting performance impact of positive psychological capital. Human Resource Development Quarterly, 21(1), 41–67.

    Article  Google Scholar 

  • Masten, A. S. (2001). Ordinary magic: resilience process in development. American Psychologist, 56(3), 227–239.

    Article  Google Scholar 

  • McCall, M. W., Lombardo, M. M., & Morrison, A. M. (1988). The lessons of experience: How successful executives develop on the job. Lexington: Lexington Books.

    Google Scholar 

  • McCauley, C. D., Ruderman, M. N., Ohlott, P. J., & Morrow, J. E. (1994). Assessing the developmental components of managerial jobs. Journal of Applied Psychology, 79, 544–560.

    Article  Google Scholar 

  • McColl-Kennedy, J. R., & Anderson, R. D. (2005). Subordinate-manager gender combination and perceived leadership style influence on emotions, self-esteem and organizational commitment. Journal of Business Research, 58(2), 115.

    Article  Google Scholar 

  • Memili, E., Welsh, D. H. B., & Luthans, F. (2013). Going beyond research on goal setting: a proposed role for organizational psychological capital of family firms. Entrepreneurship: Theory and Practice, 37(6), 1289–1296.

    Google Scholar 

  • Ming, Z., & Zuguang, H. (2013). The entrepreneurial psychological capital and the study of entrepreneurship. International Conference on Information Management, Innovation Management, and Industrial Engineering. doi:10.1109/ICIII.2013.6703101.

  • Moskovitz, T. J., & Vissing-Jorgensen, A. (2002). The returns to entrepreneurial investment: a private equity premium puzzle? American Economic Review, 92, 745–778.

    Article  Google Scholar 

  • Ottesen, G. G., & Gronhaug, K. (2005). Positive illusions and new venture creation: conceptual issues and an empirical illustration. Creativity and Innovation Management, 14(4), 405–412.

    Article  Google Scholar 

  • Palich, I. E., & Bagby, D. R. (1995). Using cognitive theory to explain entrepreneurial risk-taking: challenging conventional wisdom. Journal of Business Venturing, 10(6), 425–438.

    Article  Google Scholar 

  • Park, J., Park, M., & Kim, D. (2012). Critical review of the current policies of fostering the youth start-up firms within the framework of entrepreneurial ecosystem. Korean Journal of Management Education, 27(5), 1–30.

    Google Scholar 

  • Reivich, K., & Shatte, A. (2002). The resilience factor. New York: Broadway Books.

    Google Scholar 

  • Scheier, M. F., Carver, C. S., & Bridges, M. W. (1994). Destinguishing optimism from neuroticism (and trait anxiety, self-mastery, and self-esteem): a reevaluation of the life orientation test. Journal of Personality and Social Psychology, 67(6), 1063.

    Article  Google Scholar 

  • Schulman, P. (1999). Applying learned optimism to increase sales productivity. Journal of Personal Selling and Sales Management, 19(1), 31–37.

    Google Scholar 

  • Seligman, M. E. P. (2002). Positive psychology, positive prevention, and positive therapy. In C. R. Snyder & S. J. Lopez (Eds.), Handbook of positive psychology (pp. 3–9). New York: Oxford University Press.

    Google Scholar 

  • Shapero, A. (1981). Self-renewing economics. Economic Development Complementary, 5, 19–22.

    Google Scholar 

  • Simón-Moya, V., Revuelto-Taboada, L., & Ribeiro-Soriano, D. (2012). Are success and survival factors the same for social and business ventures? Service Business, 6(2), 219–242.

    Article  Google Scholar 

  • Snyder, C. (2001). Handbook of hope. San Diego: Academic.

    Google Scholar 

  • Snyder, C., Irving, L. M., & Anderson, S. A. (1991). Hope and health: Measuring the will and the ways. In C. R. Snyder & D. R. Forsyth (Eds.), Handbook of social and clinical psychology: The health perspective (pp. 285–305). Elmsford: Pergamon.

    Google Scholar 

  • Stajkovic, A. D., & Luthans, F. (1998). Self-efficacy and work-related performance: a meta-analysis. Psychological Bulletin, 124(2), 240–261.

    Article  Google Scholar 

  • Trevelyan, R. (2008). Optimism, overconfidence and entrepreneurial activity. Management Decision, 46(7), 986–1001.

    Article  Google Scholar 

  • Wakkee, I., Elfring, T., & Monaghan, S. (2010). Creating entrepreneurial employees in traditional service sectors. International Entrepreneurship and Management Journal, 6(1), 1–21.

    Article  Google Scholar 

  • Walsh, T. D., & Beehr, T. A. (1980). Perceived mobility channels: criteria for intraorganizational job mobility. Organizational Behavior and Human Performance, 26, 252–267.

    Article  Google Scholar 

  • Wu, B., & Knott, A. M. (2006). Entrepreneurial risk and market entry. Management Science, 52(9), 1315–1330.

    Article  Google Scholar 

Download references

Acknowledgments

We are very thankful to reviewers whose constructive comments significantly improved this paper. This work was supported by 2014 Research Fund of Myongji University. The first and second authors equally contribute to this work and the second author is a corresponding author.

Author information

Authors and Affiliations

  1. Department of Management, Bucheon University, Bucheon, Kyonggi, South Korea

    Joohee Kim

  2. College of Business Administration, Myongji University, Seoul, South Korea

    Yonghwi Noh

Authors
  1. Joohee Kim
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Yonghwi Noh
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yonghwi Noh.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Kim, J., Noh, Y. The effects of psychological capital and risk tolerance on service workers’ internal motivation for firm performance and entrepreneurship. Int Entrep Manag J 12, 681–696 (2016). https://doi.org/10.1007/s11365-015-0369-0

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11365-015-0369-0

Keywords

Search

Navigation