Enhancing student performance in business simulation games through psychological capital and flow

Business simulation games (BSGs) have attracted a lot of attention in higher education, both from an application and research perspective. Yet very little is known about the positive psychological resources that lead to greater BSG performance. To address this gap the current longitudinal study examines the impact of positive Psychological Capital (PsyCap) and flow on student performance during a BSG. Data from 238 undergraduate students was analyzed using partial least squares structural equation modeling (PLS-SEM). Findings indicate significant positive associations between PsyCap, flow, and student performance, with flow moderating the PsyCap-performance relationship. These results underscore the importance of fostering psychological resources and flow experiences to enhance educational outcomes in BSGs, contributing to the literature on positive psychology in business education and offering practical implications for curriculum design.