Although the challenge-hindrance stressor model has received considerable attention in recent years, individual differences have seldom been incorporated. With data collected from 232 hotel employees in South Korea, this study conducted hierarchical regression analyses to detect the critical role of employees' psychological capital as a moderator in the challenge-hindrance stressor model. We found that employees' psychological capital buffers the negative impacts of both challenge and hindrance stressors on job burnout. Additionally, we found that for employees high in psychological capital, work engagement increases or remains the same throughout the progression of challenge stressors while for employees low in psychological capital, work engagement decreases. No moderating effect of psychological capital was found in the relationship between hindrance stressors and work engagement. Theoretical and practical implications are provided based on the findings of this study.
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