Mediation of Psychological Capital on Human Resource Management Practices and Firm Financial Performance

  • Jolly Kabagabe Byarugaba Makerere University Business School, Faculty of Management, Uganda
  • Samuel Mafabi Makerere University Business School, Faculty of Management, Uganda
  • MTutuzeli Dywili University of Fort Hare, South Africa, Faculty of Management and Commerce, South Africa
  • Bagorogoza Janatti Kyogabiirwe Makerere University Business School, Faculty of Management, Uganda
  • Willie Chinyamurindi University of Fort Hare, Faculty of Management and Commerce, South Africa
Keywords: Psychological capital, human resource management practices, financial performance, small business, South Africa


The purpose of the study is to examine the mediating effect of psychological capital on the relationship between human resource management practices and financial performance in small businesses in South Africa. A cross-sectional survey design was utilised to collect data from a sample of 401 small businesses operating within the Eastern Cape Province of South Africa. The findings show that human resource management practices, psychological capital and financial performance are positively correlated to one another. Moreover, through hierarchical regression analyses, psychological capital was found to partially mediate the relationship between human resource management practices and financial performance. Based on the findings of the research, small business owners/managers can use the study results to develop strategies and interventions that can enable their firms to thrive.


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How to Cite
Jolly Kabagabe Byarugaba, Samuel Mafabi, MTutuzeli Dywili, Bagorogoza Janatti Kyogabiirwe, & Willie Chinyamurindi. (2022). Mediation of Psychological Capital on Human Resource Management Practices and Firm Financial Performance . International Journal of Business and Society, 23(2), 1066-1085.