Unpacking the interplay between psychological capital and wellbeing in entrepreneurs: the mediating role of burnout through conservation of resources theory

Abstract

Introduction: Despite growing research on exploring positive psychological aspects of entrepreneurs’ well-being, insufficient studies exist in the context of entrepreneurs in Sindh, Pakistan. The role of burnout as a mediator in the relationship between PsyCap and psychological well-being (PWB), from the perspective of the Conservation of Resources (COR) theory, is underexplored. Methods: This study has adopted quantitative methods and a survey technique was used to gather cross-sectional data from entrepreneurs of Sindh Province, Pakistan. A questionnaire from past relevant studies has been used to collect responses from a sample of 309 respondents through a simple random sampling technique. The data were analyzed through Partial Least Square Structural Equation Modeling (PLS-SEM) in Smart-PLS version 4. Results: The results show that PsyCap correlates positively to PWB and negatively to burnout, in a significant way. In addition, findings also reveal that burnout mediates the interplay between PsyCap and PWB. Discussion: These research outcomes suggest that increased burnout results in lower positive psychological aspects that lead to the lower psychological well-being of entrepreneurs; however, increased PsyCap (hope, optimism, resilience and self-efficacy) buffers the burnout and maintains the entrepreneurs’ flourishing and healthy psychological well-being. Hence, the present study outcomes empirically validate COR theory in the context of entrepreneurship.