Intrapreneurship to engage employees: role of psychological capital

Abstract

Purpose

Intrapreneurship is gaining traction in organizations to buckle up for the dynamic business environment. Scholars have argued that intrapreneurship increases positivity at work and helps employees attach themselves better with their job. However, empirical evidence suggests that these relationships do not exist. The objective of this paper is to examine the mediating role of psychological capital (PsyCap) in the relationship between intrapreneurship and work engagement.

Design/methodology/approach

Data were collected through an online survey. Responses from 309 employees working in different industries in India were analysed. Structural equation modelling (SEM) was used to analyse the hypothesized relationships.

Findings

The results show that there exist positive relationships among intrapreneurship, psychological capital (PsyCap) and work engagement. Further, it was observed that the PsyCap partially mediates the relationship between intrapreneurship and work engagement.

Practical implications

Managers may not only encourage intrapreneurial behaviour in their organizations but also ensure that the employees are psychologically capable (high on PsyCap). It would enable the employees to engage themselves wholeheartedly into their work.

Originality/value

To the best of the authors' knowledge, this study is one of its kinds to relate intrapreneurship with PsyCap and work engagement.

Citation

Pandey, J., Gupta, M. and Hassan, Y. (2021), "Intrapreneurship to engage employees: role of psychological capital", Management Decision, Vol. 59 No. 6, pp. 1525-1545. https://doi.org/10.1108/MD-06-2019-0825