Positive Psychological Capital as a Source of Sustainable Competitive Advantage for Organizations

Psychological capital (PsyCap) has gained prominence as an important construct in leadership research. Comprising four factors (self-efficacy, hope, optimism, and resiliency), PsyCap is considered to be a vital factor for authentic leadership development and influence. The current study reports the results of a questionnaire survey that was conducted in the construction industry of Singapore. The survey explored the correlations of PsyCap with authenticity, leadership, and leadership outcomes. The results show that PsyCap significantly correlates with authenticity and transformational leadership. It was also found that transformational leadership plays a mediating role for PsyCap to predict leadership outcomes (effectiveness, extra effort, and satisfaction). The discussion in the paper also considers the implications of PsyCap for leadership development and effectiveness in general and in the context of the construction industry.