Organizational Virtuousness Impacting Psychological Capital and Employee Performance: Examining the Intervening Mechanism

The emerging field of positive organizational psychology emphasizes on many variables such as virtues, resilience, psychological capital, self-efficacy etc. that play a significant role in predicting employee performance and to some extent organizational effectiveness. Of all these variables, organizational virtuousness (OV) provides a healthy and positive environment for the growth of its employees and allows and encourages them to take initiatives. Psychological Capital (PsyCap), a psychological state of development, is a key human resource factor in creating a competitive advantage for firms. From a research perspective, both OV and PsyCap have indicated a positive relationship with employee performance. However, the underlying mechanism needs an in-depth exploration as to how these two variables react with each other, especially when taken together. In a bid to comprehend the relationships, this study explores the implied mechanism as to whether PsyCap acts as a moderator between virtuousness and employee performance or organizational virtuousness acts as a moderator between PsyCap and perceptions of employee performance. To explore this, the authors have used a questionnaire data set collected from 120 bank employees, both from the public as well as private sector. We aim to propose a theoretical cum empirical model with special reference to banking sector employees while explaining and examining the intervening mechanism and further elaborate the implications.