Influence of Psychological Capital on Innovation Capacity: An Empirical Study on Banking Institutions

Abstract

The capacity for innovation is a key component required for companies to generate added value and to expand into new markets. In this regard, it is important to find factors that improve the capacity for innovation. One such credible factor is psychological capital. This article aims to examine the influence of psychological capital on innovation capacity. An empirical study, based on data collected from 520 employees of banking institutions in Peru, was carried out to this end. Our results revealed the positive and significant influence of psychological capital on innovation capacity. Based on dimensions of psychological capital, it was found that self-efficacy and optimism positively influenced the capacity for radical innovation. Likewise, optimism and hope were found to positively influence the capacity for incremental innovation, but resilience had no positive influence on either radical innovation or incremental innovation. This work provides business leaders with a deeper understanding of psychological factors that are deemed necessary to promote and improve innovation capacity in companies.