What is psychological capital?

Capital refers to assets of any kind that we can have more or less of, that can make things easier for us and that we can use to solve various problems that we face in our lives. If you ask people to think about the word capital, they usually think about money, securities and other forms of financial assets. Some might also think of human capital in terms of skills, knowledge and abilities, or social capital in terms of the social network an individual has. Much less commonly is capital thought of in terms of mental resources, such as psychological capital, and when this concept is mentioned it is often the first time many people have heard it. This is remarkable given how important this form of capital is to our wellbeing and to how we function and perform in different areas of life.

Since the beginning of the new millennium, when the concept of psychological capital was coined by researchers Fred Luthans and Carolyn Youssef-Morgan, a large body of scientific research (see reference list below for meta-analyses and research syntheses) has provided evidence that psychological capital is one of the most important resources we have if we are to have a good life, both personally and professionally. This research has suggested that psychological capital in the workplace is linked, for example, to

Good leadership and its development.

Physical and mental wellbeing.

Intrinsic motivation

Engagement and job satisfaction.

Good job performance.

Improved cooperation.

Reduced staff turnover.

Financial performance.

Innovation.

Lower levels of psychological distress - such as stress, anxiety and depression.

Reduced risk of burnout.

Reduced levels of dysfunctional/counterproductive behaviours in managers and employees.

There is a growing body of research that suggests that organisations have much to gain from finding ways to increase the psychological capital of their managers and employees. So what exactly does this important mental bank account consist of? If you want to be able to fill it, it is obviously important to know what to fill it with.

First and foremost, psychological capital refers to mental resources that can be influenced and developed, at least to some extent. Roughly speaking, research suggests that about 50 per cent of psychological capital is determined by our genes, leaving the other half to factors that are not determined by the genetic lottery and can therefore be influenced. To be classified as psychological capital, these modifiable resources also need to be scientifically proven to have a positive impact on our wellbeing and performance.

So what are these mental resources? If you think for a moment about the thought patterns and ways of relating to life that you yourself believe are important for human well-being and performance, you may find some clues. For example, if you think it is about 'having goals and a strong drive to work towards them', 'believing in yourself', 'being able to cope with difficulties and setbacks', and 'being able to see the positive side of life and what you are going through', then you have largely captured what psychological capital is all about. So far, four components, or currencies if you like, of psychological capital have been identified as meeting these requirements. These are, in order, hope, self-efficacy, resilience and optimism. If we take the first letters of these words, we get the apt acronym HERO, which is why the model is often popularly referred to as the HERO model, as in our inner hero.

Hope has to do with the future and is sometimes popularly referred to as having the will and seeing the way. It is about the extent to which we are confident about the future, have clear and attractive goals to achieve and realise, know how to go about achieving them, and are well prepared to deal with any obstacles and problems that may arise along the way.

Efficacy, or self-efficacy, is more closely related to the specific challenges and problems we face in our lives, for example in our role as a manager, and the extent to which we believe in our own ability to deal with them in a way that meets our own and others' expectations.

The ability to cope with and recover from difficulties, crises and all kinds of setbacks is called resilience and is partly about how we deal with the crisis that has arisen and how quickly and to what extent we manage to emerge from it, in extreme cases even stronger than before. This can involve deep and difficult setbacks, such as crises and traumas of various kinds, but resilience can also be seen as a more mundane ability to deal positively and constructively with the problems and stresses we encounter in our daily lives.

Finally, optimism refers to an overall positive view of life and what we experience. It is often described in popular terms as seeing the glass as half full rather than half empty. This view comes primarily from the way we explain and describe the positive and negative events we experience in our lives, where optimism is manifested in the way we take positive events personally and see how they could happen again, while at the same time keeping negative events partly at arm's length, so that we do not blame and guilt ourselves, but rather see what in the specific situation caused the negative and what in our specific behaviour we can do differently next time we are in a similar situation.

Each of the above mental resources has been shown to have a positive effect on us. Each of them can also be influenced, both in ourselves and in others, which is the fundamental purpose of HE(R)O-IQ. Together they form our collective psychological capital, a mental bank account that every organisation should prioritise for all its employees. There is a lot of research on psychological capital. Below you will find a number of reviews/meta-studies.

Psychological capital in general

Avey, J. B., Reichard, R. J., Luthans, F., & Mhatre, K. H. (2011). Meta-analysis of the impact of positive psychological capital on employee attitudes, behaviors, and performance. Human Resource Development Quarterly, 22(2), 127-152.

Chen, Y. C., Chien, Y. T., & Chu, H. C. (2024). Associations between workplace bullying, psychological capital, and organizational citizenship behavior: A meta-analysis with structural equation modeling. WORK, 10519815241291683.

Gallagher, M. W., Long, L. J., & Phillips, C. A. (2020). Hope, optimism, self‐efficacy, and posttraumatic stress disorder: A meta‐analytic review of the protective effects of positive expectancies. Journal of Clinical Psychology, 76(3), 329-355.

Giner, C. B., Meneghel, I., & Deprez, G. (2023). Positive psychological capital and innovative work behavior: A systematic literature review. Le Travail Humain, 86(3), 187-217.

Goyal, R., Sharma, H., & Sharma, A. (2024). Can HERO help in employee engagement? A systematic review and meta-analysis. Journal of Indian Business Research.

Jeong, H., & Baek, Y. (2017). Meta-Analysis of the impact of positive psychological capital on employees outcomes: The moderating role of tenure. International Journal of Psychological and Behavioral Sciences, 11(7), 1799-1803.

Kleine, A. K., Rudolph, C. W., & Zacher, H. (2019). Thriving at work: A meta‐analysis. Journal of Organizational Behavior, 40(9-10), 973-999.

Kong, F., Tsai, C.-H., Tsai, F.-S., Huang, W., & Cruz, S. (2018). Psychological capital research: A meta-analysis and amplications for management sustainability. Sustainability, 10, 3457.

Li, R., Che Hassan, N., & Saharuddin, N. (2023). Psychological capital related to academic outcomes among university students: A systematic literature review. Psychology Research and Behavior Management, 16, 3739-3763.

Liu, Z. (2017). Relationship between positive psychological capital and subjective well-being: meta-analysis. Advances in Psychology, 7(1), 104-115.

Loghman, S., Quinn, M., Dawkins, S., Woods, M., Om Sharma, S., & Scott, J. (2023). A comprehensive meta-analyses of the nomological network of psychological capital (PsyCap). Journal of Leadership & Organizational Studies, 30(1), 108-128.

Loghman, S., Ramirez-Perez, M., Bohle, P., & Martin, A. (2025). A comprehensive meta-analysis of the impact of intervention programmes on psychological capital development: post-intervention and longer-term effects. Personnel Review, 54(1), 106-129.

Luthans F. (2002). The need for and meaning of positive organizational behavior. Journal of Organizational Behavior, 23(6), 695-706.

Luthans F., & Youssef, C. M. (2004). Human, social, and now positive psychological capital management: Investing in people for competitive advantage, Organizational Dynamics, 33(2), 143-160.

Luthans, F., & Youssef-Morgan, C. M. (2017). Psychological capital: An evidence-based positive approach. Annual Review of Organizational Psychology and Organizational Behavior, 4(1), 339-366.

Luthans, F., Youssef, C. M., & Avolio, B. J. (2015). Psychological Capital and Beyond. Oxford University Press.

Margheritti, S., Negrini, A., & Miglioretti, M. (2022). Can psychological capital promote safety behaviours? A systematic review. International Journal of Occupational Safety and Ergonomics, (online first).

Nafei, W. (2015). Meta-analysis of the impact of psychological capital on quality of work life and organizational citizenship behavior: A study on Sadat City University. International Journal of Business Administration, 6(2), 42.

Newman, A., Ucbasaran, D., Zhu, F., & Hirst, G. (2014). Psychological capital: A review and synthesis. Journal of Organizational Behavior, 35(1), 120-138.

Nguyen, T. D., Cao, T. H., Nguyen, T. M., & Nguyen, T. T. (2024). Psychological capital: a literature review and research trends. Asian Journal of Economics and Banking, (ahead-of-print).

Nolzen, N. (2018). The concept of psychological capital: a comprehensive review. Management Review Quarterly, 68(3), 237-277.

Ocak, M., & Yetim, Ü. (2021). Psychological Capital and Burnout Relationship of Employees in Turkey: A Meta-Analysis. Turkish Studies-Social Sciences, 16(4).

Orgambídez, A., Borrego, Y., Cantero-Sánchez, F. J., & León-Pérez, J. M. (2024). Relationship between psychological capital and nursing burnout: A systematic review and meta-analysis. International Nursing Review (online first).

Preston, A., Rew, L., & Young, C. C. (2023). A systematic scoping review of psychological capital related to mental health in youth. The Journal of School Nursing, 39(1), 72-86.

Reichard, R. J., Smith, D. J., Avey, J. B., & Mhatre, K. H. (2024). A bibliometric study of positive psychological capital: investigating intellectual foundations through co-citation and content analyses. Management Review Quarterly.

Song, R., & Song, L. (2024). The relation between psychological capital and depression: a meta-analysis. Current Psychology, 1-9.

Tiwari, P. K & Kaushik, S. (2023). Association between psychological capital and subjective wellbeing: A systematic review and meta-analytic investigation. International Journal For Multidisciplinary Research 5(4), July-August 2023.

Wu, W.-Y., & van Khanh, H. (2019). The antecedents and consequences of psychological capital: A meta-analytic approach. Leadership & Organization Development Journal, 40(2). 435-456.

Youssef-Morgan, C. M. (2024). Psychological capital and mental health: Twenty-five years of progress. Organizational Dynamics, 101081.

Yuan, Z., Zhang, X., Wang, F., Jin, M., Teng, M., He, H., & Wang, J. (2023). Levels of psychological capital among nurses: A systematic review and meta‐analysis. International Nursing Review, 70(1), 89-96.

Zhen, Y., Zongguo, Z., & Chong, C. W. (2024). A meta-analysis of antecedents and outcomes of psychological capital in hospitality and tourism. Journal of Hospitality Marketing & Management, 1-29.

Zhou, S., Slemp, G. R., & Vella-Brodrick, D. A. (2024). Factors Associated with Teacher Wellbeing: A Meta-Analysis. Educational Psychology Review, 36(2), 63.

Zhou, W., Xie, B., Xin, X., BAI, G., & MIAO, R. (2015). A meta-analysis on effects of human, social, and psychological capital on career success in Chinese business organizations. Acta Psychologica Sinica, 47(2), 251.

Hope

Alarcon, G. M., Bowling, N. A., & Khazon, S. (2013). Great expectations: A meta-analytic examination of optimism and hope. Personality and Individual Differences, 54(7), 821-827.

Blake, J., & Norton, C. L. (2014). Examining the relationship between hope and attachment: A meta-analysis. Psychology, 2014.

Corrigan, J. A., & Schutte, N. S. (2023). The relationships between the hope dimensions of agency thinking and pathways thinking with depression and anxiety: A meta-analysis. International Journal of Applied Positive Psychology, 8(2), 211-255.

Gallagher, M. W., Long, L. J., & Phillips, C. A. (2020). Hope, optimism, self-efficacy, and posttraumatic stress disorder: A meta-analytic review of the protective effects of positive expectancies. Journal of clinical psychology, 76(3), 329-355.

Geiger, N., Dwyer, T., & Swim, J. K. (2023). Hopium or empowering hope? A meta-analysis of hope and climate engagement. Frontiers in Psychology, 14, 1139427.

Gollwitzer, P. M., & Sheeran, P. (2006). Implementation intentions and goal achievement: A meta-analysis of effects and processes. Advances in Experimental Social Psychology, 38(6), 69-119.

Li, P., Guo, Y. J., Tang, Q., & Yang, L. (2018). Effectiveness of nursing intervention for increasing hope in patients with cancer: a meta-analysis. Revista latino-americana de enfermagem, 26.

Luo, J., Li, L., Reangsing, C., & Schneider, J. K. (2022). Effects of psychotherapy on hope/hopelessness in adults with cancer: a systematic review and meta-analysis. International Journal of Behavioral Medicine, 29(6), 691-704.

Marques, S. C., Gallagher, M. W., & Lopez, S. J. (2017). Hope- and academic-related outcomes: A meta-analysis. School Mental Health, 9(3), 250-262.

Reichard, R. J., Avey, J. B., Lopez, S. J., & Dowlett, M. (2013). Having the will and finding the way: A review and meta-analysis of hope at work. Journal of Positive Psychology, 8(4), 292-304.

Salamanca-Balen, N., Merluzzi, T. V., & Chen, M. (2021). The effectiveness of hope-fostering interventions in palliative care: A systematic review and meta-analysis. Palliative medicine, 35(4), 710-728.

Schornick, Z., Ellis, N., Ray, E., Snyder, B. J., & Thomas, K. (2023). Hope that benefits others: A systematic literature review of hope theory and prosocial outcomes. International Journal of Applied Positive Psychology, 8(1), 37-61.

Shanahan, M. L., Fischer, I. C., Hirsh, A. T., Stewart, J. C., & Rand, K. L. (2021) Hope, optimism, and clinical pain: A meta-analysis, Annals of Behavioral Medicine, 55(9), 815-832.

Efficacy

Gully, S. M., Incalcaterra, K. A., Joshi, A., & Beaubien, J. M. (2002). A meta-analysis of team-efficacy, potency, and performance: Interdependence and level of analysis as moderators of observed relationships. Journal of Applied Psychology, 87(5), 819-832.

Haase, J., Hoff, E., Hanel, P., & Innes-Ker, Å. (2018). A meta-analysis of the relation between creative self-efficacy and different creativity measurements. Creativity Research Journal, 30(1), 1-16.

Hannah, S. T., Avolio, B. J., Luthans, F., & Harms, P. D. (2008). Leadership efficacy: Review and future directions. Leadership Quarterly, 19(6), 669-692.

Holden, G., Moncher, M. S., Schinke, S. P., & Barker, K. M. (1990). Self-efficacy of children and adolescents: A meta-analysis. Psychological Reports, 66(3), 1044-1046.

Huang, C. (2016). Achievement goals and self-efficacy: A meta-analysis. Educational Research Review, 19, 119-137.

Kierein, N., & Gold, M. (2000). Pygmalion in work organizations: A meta-analysis. Journal of Organizational Behavior, 21(8), 913-928.

Livinƫi, R., Gunnesch-Luca, G., & Iliescu, D. (2021). Research self-efficacy: A meta-analysis. Educational Psychologist, 56(3), 215-242.

McNatt, D. B. (2000). Ancient Pygmalion joins contemporary management: A meta-analysis of the result. Journal of Applied Psychology, 85(2), 314-322.

Merluzzi, T. V., Pustejovsky, J. E., Philip, E. J., Sohl, S. J., Berendsen, M., & Salsman, J. M. (2019). Interventions to enhance self-efficacy in cancer patients: A meta-analysis of randomized controlled trials. Psycho-oncology, 28(9), 1781-1790.

Prestwich, A., Kellar, I., Parker, R., MacRae, S., Learmonth, M., Sykes, B., Taylor, N., & Castle, H. (2014). How can self-efficacy be increased? Meta-analysis of dietary interventions. Health psychology review, 8(3), 270-285.

Sadri, G., & Robertson, I. T. (1993). Self-efficacy and work-related behaviour: A review and meta-analysis. Applied Psychology: An International Review, 42(2), 139–152.

Sitzmann, T., & Yeo, G. (2013). A meta-analytic investigation of the within-person self-efficacy domain: Is self-efficacy a product of past performance or a driver of future performance? Personnel Psychology, 66(3), 531-568.

Stajkovic, A. D., Lee, D., & Nyberg, A. (2009). Collective efficacy, group potency, and group performance: Meta-analysis of their relationships, and test of a mediation model. Journal of Applied Psychology, 94(3), 814-828.

Stajkovic, A., & Luthans, F. (1998). Self-efficacy and work-related performance: A meta-analysis. Psychological Bulletin, 124(2), 240-261.

Williams, S., Edmunds, J., & French, D. (2009). What is the best way to change self-efficacy to promote physical activity? A systematic review with meta-analysis. British Journal of Health Psychology, 15(2), 265-288.

Resilience

Aburn, G., Gott, M., & Hoare, K. (2016). What is resilience? An integrative review of the empirical literature. Journal of Advanced Nursing, 72(5), 980-1000.

Ang, W. H. D., Chew, H. S. J., Dong, J., Yi, H., Mahendren, R., & Lau, Y. (2022). Digital training for building resilience: Systematic review, meta‐analysis, and meta‐regression. Stress and Health, 38(5), 848-869.

Ang, W. H. D., Lau, S. T., Cheng, L. J., Chew, H. S. J., Tan, J. H., Shorey, S., & Lau, Y. (2022). Effectiveness of resilience interventions for higher education students: A meta-analysis and metaregression. Journal of Educational Psychology, 114(7), 1670–1694.

Brunwasser, S. M., Gillham, J. E., & Kim, E. S. (2009). A meta-analytic review of the Penn Resiliency Program's effect on depressive symptoms. Journal of Consulting and Clinical Psychology, 77(6), 1042-1054.

Castillo‐González, A., Velando‐Soriano, A., De La Fuente‐Solana, E. I., Martos‐Cabrera, B. M., Membrive‐Jiménez, M. J., Lucía, R. B., & Cañadas‐De La Fuente, G. A. (2024). Relation and effect of resilience on burnout in nurses: A literature review and meta‐analysis. International Nursing Review, 71(1), 160-167.

Ding, X., Zhao, F., Wang, Q., Zhu, M., Kan, H., Fu, E., ... & Li, Z. (2024). Effects of interventions for enhancing resilience in cancer patients: A systematic review and network meta-analysis. Clinical Psychology Review, 102381.

Eschleman, K. J., Bowling, N. A., & Alarcon, G. M. (2010). A meta-analytic examination of hardiness. International Journal of Stress Management, 17(4), 277-307.

Fletcher, D., & Sarkar, M. (2013). Psychological resilience: A review and critique of definitions, concepts, and theory. European Psychologist, 18(1), 12-23.

Färber, F., & Rosendahl, J. (2018). The association between resilience and mental health in the somatically ill: a systematic review and meta-analysis. Deutsches Ärzteblatt International, 115(38), 621.

Gheshlagh, R. G., Sayehmiri, K., Ebadi, A., Dalvandi, A., Dalvand, S., Maddah, S. B., & Tabrizi, K. N. (2017). The relationship between mental health and resilience: a systematic review and meta-analysis. Iranian Red Crescent Medical Journal, 19(6), 8.

Janitra, F. E., Chen, R., Lin, H. C., Sung, C. M., Chu, H., Lee, C. K., ... & Chou, K. R. (2024). Efficacy of resilience‐related psychological interventions in patients with long‐term diseases: A meta‐analysis of randomised controlled trials. International Journal of Mental Health Nursing.

Joyce, S., Shand, F., Tighe, J., Laurent, S. J., Bryant, R. A., & Harvey, S. B. (2018). Road to resilience: a systematic review and meta-analysis of resilience training programmes and interventions. BMJ open, 8(6), e017858.

Lee, J., Nam, S., Kim, A., Kim, B., Lee, M., & Lee, S. (2013). Resilience: A meta‐analytic approach. Journal of Counseling & Development, 91(3), 269-279.

Leppin, A. L., Bora, P. R., Tilburt, J. C., Gionfriddo, M. R., Zeballos-Palacios, C., Dulohery, M. M., Sood, A., Erwin, P. J., Brito, J. P., Boehmer, K. R.,& Montori, V. M. (2014). The efficacy of resiliency training programs: a systematic review and meta-analysis of randomized trials. PloS One, 9(10),

Liu, J. J. W., Ein, N., Gervasio, J., Battaion, M., & Fung, K. (2022). The pursuit of resilience: A meta-analysis and systematic review of resilience-promoting interventions. Journal of Happiness Studies, 1-21.

Liu, J. J., Ein, N., Gervasio, J., Battaion, M., Reed, M., & Vickers, K. (2020). Comprehensive meta-analysis of resilience interventions. Clinical Psychology Review, 82, 101919.

Mortazavi, N. S., & Yarolahi, N. A. (2015). Meta-analysis of the relationship between resilience and mental health. Journal of Fundamentals of Mental Health, 17(3).

Oshio, A., Taku, K., Hirano, M., & Saeed, G. (2018). Resilience and Big Five personality traits: A meta-analysis. Personality and Individual Differences, 127, 54-60.

Robertson, I. T., Cooper, C. L., Sarkar, M., & Curran, T. (2015). Resilience training in the workplace from 2003 to 2014: A systematic review. Journal of Occupational and Organizational Psychology, 88(3), 533–562.

Schäfer, S. K., von Boros, L., Schaubruch, L. M., Kunzler, A. M., Lindner, S., Koehler, F., ... & Tüscher, O. (2024). Digital interventions to promote psychological resilience: a systematic review and meta-analysis. NPJ Digital Medicine, 7(1), 30.

Troy, A. S., Willroth, E. C., Shallcross, A. J., Giuliani, N. R., Gross, J. J., & Mauss, I. B. (2023). Psychological resilience: An affect-regulation framework. Annual Review of Psychology, 74, 547-576.

Vanhove, A. J., Herian, M. N., Perez, A. L., Harms, P. D., & Lester, P. B. (2016). Can resilience be developed at work? A meta‐analytic review of resilience‐building programme effectiveness. Journal of Occupational and Organizational Psychology, 89(2), 278-307.

Wermelinger Avila, M. P., Lucchetti, A. L. G., & Lucchetti, G. (2017). Association between depression and resilience in older adults: a systematic review and meta‐analysis. International Journal of Geriatric Psychiatry, 32(3), 237-246.

Windle, G. (2011). What is resilience? A review and concept analysis. Reviews in Clinical Gerontology, 21(2), 152-169.

Yu, M., Wen, J., Smith, S.M., and Stokes, P. (2022). Building-up resilience and being effective leaders in the workplace: a systematic review and synthesis model. Leadership & Organization Development Journal, 43(7), 1098-1117.

Optimism

Alarcon, G. M., Bowling, N. A., & Khazon, S. (2013). Great expectations: A meta-analytic examination of optimism and hope. Personality and Individual Differences, 54(7), 821-827.

Andersson, G. (1996). The benefits of optimism: A meta-analytic review of the life orientation test. Personality and Individual Differences, 21(5), 719-725.

Carrillo, A., Rubio-Aparicio, M., Molinari, G., Enrique, A., Sanchez-Meca, J., & Banos, R. M. (2019). Effects of the best possible self intervention: A systematic review and meta-analysis. PloS one, 14(9), e0222386.

Craig, H., Freak-Poli, R., Phyo, A. Z. Z., Ryan, J., & Gasevic, D. (2021). The association of optimism and pessimism and all-cause mortality: A systematic review. Personality and Individual Differences, 177, 110788.

Fasano, J., Shao, T., Huang, H. H., Kessler, A. J., Kolodka, O. P., & Shapiro, C. L. (2020). Optimism and coping: Do they influence health outcomes in women with breast cancer? A systemic review and meta-analysis. Breast Cancer Research and Treatment, 183, 495-501.

Gallagher, M. W., Lopez, S. J., & Pressman, S. D. (2013). Optimism is universal: Exploring the presence and benefits of optimism in a representative sample of the world. Journal of Personality, 81(5), 429-440.

Krittanawong, C., Maitra, N. S., Hassan Virk, H. U., Fogg, S., Wang, Z., Kaplin, S., Gritsch, D., Storch, E. A., Tobler, P. N., Charney, D. S., & Levine, G. N. (2022). Association of optimism with cardiovascular events and all-cause mortality: systematic review and meta-analysis. The American Journal of Medicine, 135(7), 856-863.

Lin, X., Luan, Y., Zhao, K., Zhao, T., & Zhao, G. (2022). The antecedents and outcomes of career optimism: a meta-analysis. Career Development International, 27(4), 409-432.

Malouff, J. M., & Schutte, N. S. (2017). Can psychological interventions increase optimism? A meta-analysis. The Journal of Positive Psychology, 12(6), 594–604.

Prati, G., & Pietrantoni, L. (2009). Optimism, social support, and coping strategies as factors contributing to posttraumatic growth: A meta-analysis. Journal of loss and trauma, 14(5), 364-388.

Rasmussen, H. N., Scheier, M. F., & Greenhouse, J. B. (2009). Optimism and physical health: A meta-analytic review. Annals of Behavioral Medicine, 37(3), 239-256.

Rozanski, A., Bavishi, C., Kubzansky, L. D., & Cohen, R. (2019). Association of optimism with cardiovascular events and all-cause mortality: a systematic review and meta-analysis. JAMA network open, 2(9), e1912200-e1912200.