The Effects of Psychological Capital on Organizational Performance with an Emphasis on the Mediatory Role of Innovation in Information Technology: A Case Study of the Branches of Agriculture Bank in Tehran

Document Type : Original Article

Authors

University of Tehran  

Abstract

In the past two decades, organizational performance has become one of the most attractive topics of interest, resulting in various innovations in research and applied fields. This paper seeks to investigate the effects of psychological capital on organizational performance, focusing on the mediating role of innovation in information technology among the branches of Agriculture bank in Tehran, Iran. This study is empirical with descriptive-correlative methodology. The research population includes 135 managers and employees working for Agriculture bank in Tehran. A sample of 100 is selected from them for the experiment, using Kerjeici and Morgan table and random sampling. Data gathering tool in this study is a standard questionnaire, while structural equation modeling (SEM) and SmartPLS 2 software are used for data analysis. The results show that innovation in IT mediates the relationship between psychological capital and organizational performance, and there is a significant and positive relationship between psychological capital and innovation in IT. At the end, some suggestions are made to increase innovation in IT and to improve organizational performance.

Keywords


Abbas, M. & Raja, U., 2011. Impact of Psychological Capital on Innovative Performance and Job Stress.  John Wiley & Sons, Ltd, pp. 128-138.
Akgun, A., Keskin, H., Byrne, J. & Eng, J., 2009. Organizational Emotional Capability, Product and Process Innovation, and Firm Performance: An Empirical Analysis”. Engineering and Technology Management, Volume 26, pp. 103-130.
Al-Dujaili, M. A., 2012. Influence of Intellectual Capital in the Organizational Innovation. Innovation, Management and Technology, 3(2), pp. 128-135.
Amado, J., Arostegui, M. & Torres, J., 2010. Information Technology Enabled Innovativeness and Green Capabilities. Industrial Management & Data System, Volume 41, pp. 550-566.
Avey, J. B., Luthans, F. & Youssef, C. M., 2008. The Additive Value of Positive Psychological Capital in Predicting Work Attitudes and Behaviors. Journal of Management, 36(2), pp. 430-452.
Avey, J., Nimnicht, J. & Pigeon, N., 2010. Two Field Studies Examining the Association between Positive Psychological Capital and Employee Performance. Leadership & Organization Development Journal, 31(5), pp. 384-401.
Azari, As., Mehdi Zamani, M. & Soleimani Fard, A., 2015. Organizational Performance Management Strategic Model. Tehran: Institute for Defense Research and Training.
Baum, J. R. & Locke, E. A., 2004. A Longitudinal Study of the Relation of Vision and Vision Communication to Venture Growth in Entrepreneurial Firms. Journal of Applied Psychology, Volume 83, pp. 43-54.
Carmen, C. & José, G., 2008. The Role of Technological and Organizational Innovation in the Relation between Market Orientation and Performance in Cultural Organizations. Innovation Management, Volume 11, pp. 413-434.
Chen, C. J., Huang, J. W. & Hsiao, Y. C., 2014. Knowledge Management and Innovativeness, the Role of Organizational Climate and Structure. Manpower, Volume 8, pp. 848-870.
Cronbach, L., 1951. Coefficient Alpha and the Internal Structure of Tests. Psychometrika, 16(3), pp. 369-390.
Damanpour, F., Walker, R. M. & & Avellaneda, C. N., 2009. Combinative Effects of Innovation Types and Organizational Performance: A longitudinal Study of Service Organizations. Management Studies, 46(4), pp. 650-675.
Davari, As. & Reza Zadeh, A., 2014. Structural Equation Modeling with PLS Software. Tehran: Jahad University Press.
Fisser, S. & Browaeys, M.-J., 2014. Team Learning on the Edge of Chaos, The Learning Organization. Special Issue Networks of learning and leadership in organization, 17(1), pp. 58-68.
Fredrickson, B., 2001. The role of positive emotions in positive psychology: The Broaden and Build Theory of Positive Emotions. American Psychologist, 56(3), pp. 218-226.
Ghasemie, R. & Abdollahi, H., 2012. Explaining the Relationship of Corporate Entrepreneurial Measures to Organizational Performance (An Empirical Study). Entrepreneurship Development Quarterly, 3(50, pp.27-46.
Gholipoor, R.A., Aghajani, H. & Keramati Karimi, M.As. 2009. Investigating the Factors Affecting the Identification of Entrepreneurial Opportunities in the Field of Information Technology. Entrepreneurship Development Quarterly, 1(3), pp.27-46.
Govaerts, N., Kyndt, E., Dochy, F. & H, B., 2013. Influence of Learning and Working Climate on the Retention of Talented Employees. Workplace Learning, 23(1), pp. 35-55.
Harland, L., Harrison, W., Jones, J. & Reiter-Palmon, R., 2005. Leadership behaviors and subordinate resilience. Leadership and Organizational Studies, Volume 11, pp. 2-14.
Hmieleski, K. & Carr, J., 2007. The Relationship Between Enterprenuer Psychological Capital and Well-Being. Frontiers of Entrepreneurship Research, 27(5), pp. 63-81.
Hozoori, M., Salehi, As., Danaei Far, H. & Najar, R., 2013. Designing an Innovation Capital Promotion Model in Iran's Governmental Organizations: Explaining the Role of Human Resources Management Functions. Management Research in Iran, 17(3), pp.23-47.
Hulland, J., 1999. Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal, 20(2), pp. 42-52.
Jafri, H., 2012. Psychological Capital and Innovative Behaviour: An Empirical Study on Apparel Fashion Industry. Contemporary Management Research, 16(1), pp. 42-52.
Kaplan, R. & Norton, D., 2003. Strategy Maps. Boston: HBS Press.
Lee, S., Kim, K., Paulson, P. & Park, H., 2008. Developing a Socio-technical Framework or Business-IT Alignment. Industrial Management & Data Systems, 108(9), pp. 1167-1181.
Lin, C. & Chen, M., 2007. Does innovation lead to performance? An empirical study of SMEs in Taiwan. Management Research News, Volume 30, pp. 115-132.
Luthans, B. & Avey, J., 2011. Relationship between Positive Psychological Capital and Creative Performance. Canadian Journal of Administrative Sciences Revue Canadienne des Sciences Administration, Volume 28, pp. 4-13.
Luthans, F., Avey, J. & Patera, J., 2008. Experimental Analysis of a Web-based Intervention to Develop Positive Psychological Capital. Academy of Management Learning and Education, Volume 7, pp. 209-221.
Luthans, F., Avolio, B., Avey, J. & Norman, S., 2007. Positive Psychological Capital: Measurement and Relationship with Performance and Satisfaction. Personal Psychology, 60(3), pp. 541-572.
Luthans, F. & Youssef, C., 2007. Positive Organizational Behavior in the Workplace: The Impact of Hope, Optimism, and Resilience. Organizational Dynamics, Volume 33, pp. 143-160.
Magner, N., Welker, R. B. & Campbell, T. L., 1996. Testing a Model of Cognitive Budgetary Participation Processes in a Latent Variable Structural Equations Framework. Accounting and Business Research, 27(1), pp. 41-58.
McDermott, C. & Prajogo, D., 2011. Service Innovation and Performance in SMEs. Operations & Production Management, 32(2), pp. 216-237.
McKenzie, J. & Aitken, P., 2012. Development of Digital Product Catalogue for Enabling Agility in a Manufacturing Organization. Strategic HR Review, Volume 11, pp. 12-31.
Mirkamali, M., 2006. Educational management culture. Tehran: Yastoroon.
Nicolas, C. & Cerdan, A., 2012. Strategic Knowledge Management, Innovation and Performance. Information Management, Volume 31, pp. 502-509.
Peterson, S. J., O., W. F., Byron, K. & &Myrowitz, J., 2008. CEO Positive Psychological Traits, Transformational Leadership, and Firm Performance in High-Technology Start-up and Established Firms. Journal of Management, 35(2), pp. 348-362.
Rego, A., Sousa, F., Marques, C. & Cunha, M., 2012. Authentic leadership promoting employees’ psychological capital and creativityv. Business Research, Volume 65, pp. 29-437.
Richardson, G. & Waite, P., 2002. Mental Health Promotion through Resilience and Resiliency Education. Emergency Mental Health, Volume 4, pp. 65-75.
Sebastian, B. & Moyano, J., 2077. Organizational Determinants of Information. Science & Technology, 42(12), pp. 4478-4485.
Snyder, C., 2000. Handbook of Hope. San Diego: Academic Press..
Sobel, M., 1982. Asymptotic Confidence Intervals for Indirect Effect in Structure Equations Models. In: Leinhart S, editor. Sociological Methodology 1982, Volume 15, pp. 290-312.
Sweetman, D., Avey, J., Luthans, F. & Luthans, B., 2010. Relationship between Positive Psychological Capital and Creative Performance. Canadian Journal of Administrative Science, 28(1), pp. 4-13.
Tarafdar, M. & Gordon, S., 2007. Understanding the Influence of Information Systems Competencies on Process Innovation: A Resource-based View. Strategic information Systems, Volume 16, pp. 353-392.
Vinzi, V. E., Trinchera, L. & Amato, S., 2010. PLS Path Modeling: from Foundations to Recent Developments and Open Issues for Model Assessment and Improvement.
Wang, P. & Ramiller, N., 2009. Community Learning in Information Technology Innovation. MIS Quarterly, 3(4), pp. 709-734.
Werts, C., Linn, R. & Joreskog, K., 1974. Intra Class Reliability Estimates: Testing Structural Assumptions. Educational and Psychological Measurement, 34(1), pp. 25-33.
Zhou, J. & George, M., 2003. Awakening employee creativity: The role of leader emotional intelligence. The Leadership Quarterly, Volume 14, pp. 545-568.