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Since the term's introduction two decades ago, “psychological capital” has been described as an intangible strategic organizational resource. However, there remains a dearth of research regarding its application, especially in the macro-management fields. This paper addresses this gap by elevating the individual-level psychological capital (ILPC) concept to an equivalent organizational-level psychological capital (OLPC) model with appropriate methodological considerations.

The elevation of ILPC to OLPC is conducted using referent shift approach. Then, the proposed OLPC model is tested and validated using the partial least-squares structural equation modeling analysis technique.

Testing the OLPC model adequately validated the basic requirements of reliability, validity, multicollinearity and redundancy analysis. To ensure the practical use of the proposed model, a simulation study was also conducted, and the results confirmed the strength of ILPC being elevated to a model of OLPC.

The findings imply a better understanding of psychological capital from a multilevel perspective and present cross-level opportunities to enrich the scholarly corpus. The current paper also provides an insight into psychological capital management efficiency at all organizational levels so that the greatest benefits can be obtained.

This paper shows, for the first time, the possibility of borrowing ILPC concepts to help enact OLPC in organizations by means of a survey study. This paves the way for further investigation into the use of psychological capital at strategic and other macromanagement levels. Finally, future studies are encouraged to triangulate and strengthen the main arguments presented here.

Intangible assets (IA) have been described as a multidimensional concept. However, there is a gap in research that considers IAs as a higher-order construct (HOC). Therefore, this paper aims to focus on demonstrating how IAs can be properly specified and measured as HOCs, given IA’s four major dimensions in small- and medium-sized enterprises (SMEs).

A HOC model is applied using a partial least squares–structural equation modeling (PLS-SEM) repeated-indicator approach. This approach helps validate the argument for considering IAs as HOCs by testing the basic requirements of the construct model.

The main finding from testing the model’s reliability, validity, multicollinearity and redundancy analysis indicates that the establishment of IAs as a HOC model is valid. Additionally, the simulation study results support the use of the proposed model.

The proposed model is believed to enhance the proper understanding of IAs and their relationship with organizational outcomes. Additionally, the model can inform organizational management of the integrative approach needed to effectively synchronize their strategic resources for improved performance of entrepreneurially growing SMEs.

This paper is the first to show the measurement of IAs as HOCs using PLS-SEM, based on IA’s updated dimensions. The authors believe that this paper paves the way for future discussion on IA measurement to conduct rigorous impactful studies with larger sample size.