The effect of psychological capital on growth and entrepreneurs’ use of human and social capital

Abstract

This study examines the impact of human capital, social capital, and psychological capital on the revenue growth of small and medium-sized enterprises, based on 164 survey interviews with entrepreneurs in eastern China. While previous research indicates generally positive impacts on growth from entrepreneurs human capital and social capital, the study addresses contingencies and negative effects, demonstrating advantages and disadvantages to networks and moderating effects of psychological capital, including enhancing, buffering and resource substitution mechanisms. This research aims to establish boundary conditions for these theories to explain how entrepreneurs apply intangible resources to grow ventures in the Chinese context.