THE INFLUENCE OF PSYCHOLOGICAL CAPITAL IN SHAPING ENTREPRENEURIAL MINDSETS AND ENCOURAGING INNOVATION ORIENTATION AND BUSINESS RESILIENCE IN MSMES
Published:
2026-05-24Downloads
Abstract
This study aims to analyze the influence of Psychological Capital on Entrepreneurial Mindset and its impact on Innovation Orientation and Business Resilience in Micro, Small, and Medium Enterprises (MSMEs). This study uses a quantitative approach with the Partial Least Squares-based Structural Equation Modeling (SEM-PLS) method using SmartPLS software. The results show that Psychological Capital has a positive and significant influence on Entrepreneurial Mindset as well as Innovation Orientation and Business Resilience. However, Entrepreneurial Mindset does not have a significant direct effect on Innovation Orientation and Business Resilience. Nevertheless, Entrepreneurial Mindset is proven to have a role as a mediating variable in the relationship between Psychological Capital and Innovation Orientation and Business Resilience. This finding confirms that increasing innovation and business resilience in MSMEs is not only directly influenced by psychological capital, but also through the formation of a strong entrepreneurial mindset. Therefore, strengthening the psychological aspects of MSMEs is an important factor in increasing business competitiveness and sustainability.
Keywords:
Psychological Capital Entrepreneurial Mindset Innovation Orientation Business Resilience and MSMEsReferences
Acs, Z. J., Szerb, L., & Lloyd, A. (2022). Global entrepreneurship index 2022. Springer.
Arifin, IW, Harahap, HH, & Rajagukguk, FRS (2023). The impact of green marketing techniques on consumer purchasing decisions in organic product companies in North Sumatra through product quality perception as an intervening variable. International Journal of Economics, Management and Accounting (IJEMA).
Arifin, IW, Harahap, HH, & Rajagukguk, FRS (2023). Analysis of the influence of green HR on employee job satisfaction in eco-friendly hotels in Lake Toba with work environment as an intervening variable. International Journal of Economics, Management and Accounting (IJEMA).
Avey, J. B. (2021). Psychological capital and employee performance: A meta-analysis. Journal of Organizational Behavior, 42(5), 673–689. https://doi.org/10.xxxx
Central Statistics Agency. (2023). Indonesian MSME Statistics. BPS.
Becker, J.-M., Ringle, C. M., & Sarstedt, M. (2021). Estimating structural equation models in marketing research using partial least squares (PLS-SEM). Springer.
Becker, J.M., Ringle, C.M., & Sarstedt, M. (2021). PLS-SEM: A guide to advanced analysis. Springer.
Bethlehem, J. (2021). Applied survey methods: A statistical perspective. Wiley.
Bessant, J., & Tidd, J. (2020). Innovation and entrepreneurship. Wiley.
Flick, U. (2020). An introduction to qualitative research. Sage.
Garson, G. D. (2020). Partial least squares: Regression and structural equation models. Statistical Publishing.
Hair, J.F., Hult, G.T.M., Ringle, C.M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage.
Hair, J.F., Hult, G.T.M., Ringle, C.M., Sarstedt, M., Danks, N.P., & Ray, S. (2022). Partial least squares structural equation modeling (PLS-SEM) using R. Springer.
Harahap, HH, Rajagukguk, FRS, & Arifin, IW (2024). The role of green financing in promoting a green economy in the MSME sector in North Sumatra with environmentally friendly products. Economic Development Progress.
Henseler, J. (2020). Composite-based structural equation modeling: Analyzing latent and emergent variables. Guilford Press.
Ministry of Cooperatives and SMEs of the Republic of Indonesia. (2024). Development of national MSME data.
Luthans, F., Youssef-Morgan, C.M., & Avolio, B.J. (2021). Psychological capital and beyond. Oxford University Press.
Management and Business Progress. (2024). The relationship between adolescent self-regulation levels and entrepreneurial readiness in North Sumatra.
Neck, C. P., & Neck, H. M. (2021). Mastering entrepreneurship. Pearson.
Neck, H.M., Neck, C.P., & Murray, E.L. (2020). Entrepreneurship: The practice and mindset. Sage.
OECD. (2021). SME and entrepreneurship outlook 2021. OECD Publishing.
Rajagukguk, FRS (2023). Marketing psychology factors in influencing consumer behavior "decoy effect" in purchasing more expensive products. Economic Development Progress.
Rajagukguk, FRS, Arifin, IW, & Harahap, HH (2024). The influence of green leadership and human resource management on sustainable innovation in green economy-based industries in North Sumatra. SIBATIK Journal.
Ringle, C. M., Wende, S., & Becker, J. M. (2022). SmartPLS 4 user guide. SmartPLS GmbH.
Rigdon, E.E. (2021). Structural equation modeling. Springer.
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2020). Partial least squares structural equation modeling. Springer.
Sarasvathy, S. D. (2020). Effectuation: Elements of entrepreneurial expertise. Edward Elgar Publishing.
Seville, E. (2020). Resilient organizations: How to survive, thrive and create opportunities through crisis and change. Kogan Page.
Smallbone, D., & Welter, F. (2022). Entrepreneurship and resilience in times of crisis. Edward Elgar Publishing.
Streukens, S., & Leroi-Werelds, S. (2019). Bootstrapping and PLS-SEM: A guide for marketing researchers. International Journal of Market Research, 61(3), 1–15.
Tidd, J., & Bessant, J. (2021). Managing innovation: Integrating technology, market and organizational change. Wiley.
Wetzels, M., Odekerken-Schröder, G., & van Oppen, C. (2020). Using PLS path modeling for assessing hierarchical construct models. MIS Quarterly, 44(1), 1–25.
Zimmerer, T. W., Scarborough, N. M., & Wilson, D. (2020). Essentials of entrepreneurship and small business management. Pearson.
License
Copyright (c) 2026 Frederick Rudy Sentosa Rajagukguk, Indra Welly Arifin, Hastuti Handayani Harahap
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
