The Impact of Psychological Capital on Employee Performance with Mediation Relationship of Talent Management in the Fin-Tech Companies in Egypt

Noha Osama Mashhour¹ and Sahar Mohamed Badawy^2,

¹Arab Academy for Science, Technology and Maritime Transport, Graduate School of Business (AASTMT), Cairo, Egypt

²The British University in Egypt (BUE), Cairo, Egypt

Cite this paper

Noha Osama Mashhour and Sahar Mohamed Badawy. The Impact of Psychological Capital on Employee Performance with Mediation Relationship of Talent Management in the Fin-Tech Companies in Egypt. Journal of Business and Management Sciences. 2024; 12(1):30-45. doi: 10.12691/JBMS-12-1-4

Abstract

Egyptian Fin-Tech companies are enhancing their Psychological Capital to maintain a competitive edge and ensure stability. Retaining skilled employees is crucial for organizational stability. However, the limited availability of proficient experts in the Fin-Tech sector presents a significant barrier. Employees with a thorough understanding of their Psychological Capital and effective management skills can positively impact their performance, ensuring a competitive edge in the industry. Research Objective and Aim: This study aims to investigate the relationship between Psychological Capital and Employees' Performance in Egyptian Fin-Tech companies, taking into account the mediating influence of Talent Management due to its importance. Research Methodology: The study embraces the positivist philosophy and employs a deductive technique. Employing a quantitative research approach with a survey methodology, the study focused on a sample of 384 individuals employed in Egyptian Fin-Tech companies. Results: A clear and discernible positive connection and impact of Psychological Capital on Employee Performance, Psychological Capital on Talent Management, and Talent Management on Employee Performance can be observed. Psychological Capital eventually improves Employee Performance through Talent Management. Recommendations: A study in Egypt found that high Psychological Capital in Fin-Tech companies leads to increased job satisfaction and performance. This suggests the importance of developing an adaptive workforce, involving managers and talent management specialists in effective communication and recruitment. The study also underscores the need for fostering a positive corporate culture, enhancing employees' time management skills, and addressing negative attitudes. Limitations and Future Work: The study's limitations encompass administrative obstacles and a restricted target population. Subsequent studies should broaden their scope beyond Fin-Tech and encompass additional industries, including banking, healthcare, and tourism, to gain a more comprehensive understanding of how Psychological Capital affects Employee Performance and talent management.

Keywords

psychological capital, talent management, Employee Performance, Fin-Tech

Copyright

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References

[1]	R. S. Ayers, "Aligning Individual and Organizational Performance: Goal Alignment in Federal Government Agency Performance Appraisal Programs," Public Personnel Managemen, p. 169–191, 2015.
[2]	Huijuan Ma, et al., "Assessing the effects of organizational support, Psychological Capital, organizational identification on job performance among nurses: a structural equation modeling approach," BMC Health Services Research, 2023.
[3]	M. A. Aref, "A Suggested Model for Measuring the Extent of The Effect of Psychological Capital on Human Talent Management: A Field Study Applied to Fertilizers and Chemicals Companies in Egypt," pp. 105-162, 2018.
[4]	James B. Avey,et al., "A Longitudinal Analysis of Positive Psychological Constructs and Emotions on Stress, Anxiety, and Well-Being," Journal of Leadership & Organizational Studies, 2011.
[5]	Zahoor Ahmad Parray, et, al., "Psychological Capital and employee job attitudes: the critical significance of work-life balance," Evidence-based HRM: a Global Forum for Empirical Scholarship, pp. 483-500, 2023.
[6]	Frank Nana et al., "Measuring the impact of human resource development (HRD) practices on Employee Performance in small and medium scale enterprises," European Journal of Training and Development, 2018.
[7]	S. Kamel, "The Potential Impact Of Digital Transformation On Egypt1," The Economic Research Forum, 2021.
[8]	T. Kheira, "Financial Technology Prospects in The Middle East and Africa," Journal of Economic Growth and Entrepreneurship JEGE, vol. 4, no. 3, 2021.
[9]	"Egypt Fin-Tech Landscape Report 2021," Central Bank of Egypt, Cairo, Egypt, 2021.
[10]	I. S. Mohamed, "Flourishing Fin-Tech Ecosystem: Conceptualization and Governing Issues in Malaysia," Business and Economic Research, vol. 11, no. 3, 2021.
[11]	C. B. o. Egypt, "Highlights of the Central Bank of Egypt’s Fin-Tech Strategy," Central Bank of Egypt, Cairo, Egypt, 2019.
[12]	S. F. Geraldo, "Fin-Tech Landscape In Sub Saharan Africa The Case Of Mozambique," Nova School of Business and Economics., 2021.
[13]	Mihaly Csikszentmihalyi, Martin E. P. Seligman, "Positive Psychology: An Introduction," American Psychologist, pp. 5-14, 2000.
[14]	Julie Dyrdek Broad & Fred Luthans, "Positive resources for psychiatry in the fourth industrial revolution: building patient and family focused Psychological Capital (PsyCap)," International Review of Psychiatry, 2020.
[15]	Henryawan Sigit, Muafi Muafi, "The influence of internal marketing and organizational commitment on Employee Performance mediated by Psychological Capital," INTERNATIONAL JOURNAL OF RESEARCH IN BUSINESS AND SOCIAL SCIENCE, 2022.
[16]	Fred Luthans, Carolyn M. Youssef, Bruce J. Avolio, PSYCHOLOGICAL CAPITAL, Developing the Human Competitive Edge, Oxford University Press, 2007.
[17]	Mustafa Fedai ÇAVUŞ, Ayşe Gökçen Kapusuz, "Psychological Capital: Definition, Components and Effects," British Journal of Education, Society & Behavioural Science, vol. 5, pp. 244-255, 2015.
[18]	Suzanne J. Peterson, et al., "Psychological Capital and Employee Performance: a latent growth modeling approach," PERSONNEL PSYCHOLOGY, vol. 64, p. 427–450, 2011.
[19]	e. a. Brett C. Luthans, "Building the Leaders of Tomorrow: The Development of Academic Psychological Capital," Journal of Leadership & Organizational Studies, 2013.
[20]	Ramin Aliyeva, Erhan Tunc, "Self-efficacy in counseling: The role of organizational Psychological Capital, job satisfaction, and burnout," Procedia - Social and Behavioral Sciences, pp. 97-105, 2014.
[21]	M. Kızıloğlu, "The Role of Psychological Capital in Creating an Intrapreneurship Culture," Üçüncü Sektör Sosyal Ekonomi Dergisi, pp. 2701-2714, 2021.
[22]	Hmieleski, Keith M. and Carr, Jon C., "The Relationship between Entrepreneur Psychological Capital and Well-Being.," 2007.
[23]	C. R. Snyder, "Hope Theory: Rainbows in the Mind," Taylor & Francis, Ltd, 2002.
[24]	F. Luthans, "Positive organizational behavior: Developing and managing psychological strengths," Academy of ManagemenI Executive, vol. 16, p. 57, 2002.
[25]	F. Luthans, "The need for and meaning of positive organizational behavior," Management Department Faculty Publications, 2002.
[26]	James B. Avey, et, al., "Meta-Analysis of the Impact of Positive Psychological Capital on Employee Attitudes, Behaviors, and Performance," HUMAN RESOURCE DEVELOPMENT QUARTERLY, vol. 22, 2011.
[27]	Suzanne J. Peterson,et, al., "The positive impact and development of hopeful leaders," Leadership & Organization Development Journal, vol. 24, pp. 26-31, 2003.
[28]	Al Maktoum, Saeed bin Ahmad bin Khalifa, "Employee’s Strategic Alignment Effects on Employee’s Performance, the Mediating Role of Employee’s Engagement," The British University in Dubai, 2023.
[29]	Eli Ayawo Atatsi, et al., "Factors affecting Employee Performance: a systematic literature review," Journal of Advances in Management Research, 2019.
[30]	George G. Panigyrakis, Prokopis K. Theodoridis, "Internal marketing impact on business performance in a retail context," International Journal of Retail & Distribution Management, vol. 37, pp. 600-628, 2009.
[31]	Bongani Ngwenya, Theuns Pelser, "Impact of Psychological Capital on employee engagement-job satisfaction and Employee Performance," Journal of Industrial Psychology, 2020.
[32]	Linda Koopmans, Claire Bernaards, et al., "Development of an individual work performance questionnaire," International Journal of Productivity and Performance Management, 2013.
[33]	Linda Koopmans, et., "Conceptual Frameworks of Individual Work Performance," American College of Occupational and Environmental Medicine, vol. 53, 2011.
[34]	Syed Hussain Al-Hussaini, et, "Impact Of Talent Management Strategies On Employee Performance Behaviour With The Mediating Role Of Talent Management Outputs," Archives of Business Research, vol. 7, pp. 116-124., 2019.
[35]	S. Sonnentag, Wiley Handbooks in the Psychology of Management in Organizations, John Wiley&Sons, 2002.
[36]	J. K. Mensah, "A “coalesced framework” of talent management and Employee Performance For further research and practice," International Journal of Productivity and Performance Managemen, vol. 64, pp. 544-566, 2015.
[37]	e. a. Felipe Mu~noz Medina, "The relationship between job insecurity and Employee Performance: a systematic literature review and research agenda," Career Development International, 2023.
[38]	Stephan J. Motowidlo, James Robert Van Scotter, "Evidence That Task Performance Should Be Distinguished From Contextual Performance," Journal of Applied Psychology, 1994.
[39]	M. Mahmoud, "Counterproductive Work Behaviors in Organizations," Scientific Journal for Economic& Commerce, pp. 283-291, 2020.
[40]	Endang Saefuddin Mubarok, Hidayatullah Putra, "The Influence of Training, Competence, and Motivation on Employees Performance of Workers Social Security Agency in Banten Province, Indonesia," Journal of Economics and Sustainable Development, vol. 9, no. 4, 2018.
[41]	L. W. Joyce, "BUILDING THE TALENT PIPELINE, Attracting and Recruiting the Best and Brightest," in Strategy-Driven Talent Management, Guilford Press, 2010, p. 124.
[42]	Elaine D., Michelle A., Kevin E., "Adaptability in the Workplace: Development of a Taxonomy of Adaptive Performance," American Psychological Association, Inc., vol. 85, pp. 612-624, 2000.
[43]	Cheng-Yi Luo, et., "How does hotel employees’ Psychological Capital promote adaptive performance? The role of change readiness," Journal of Hospitality and Tourism Management, p. 491–501, 2022.
[44]	Tajammal Hussain Awan, Nadia Nasir, "The Role of Thriving and Determinants of Adaptive Performance: A Moderated Mediated Model in the Health Sector of Pakistan," iRASD Journal of Management, pp. 61 - 76, 2022.
[45]	James Kwame Mensah,et, al., "Unlocking the “black box” in the talent management Employee Performance relationship Evidence from Ghana," Management Research Review, pp. 1546-1566, 2016.
[46]	M. Kaleem, "The Influence of Talent Management on Performance of Employee in Public Sector Institutions of the UAE," Public Administration Research, vol. 8, no. 2, 2019.
[47]	Aswin Rivai, et, "Effect Of Talent Management And Social Capital On Employee Performance Mediated By Job Satisfaction," Nat. Volatiles & Essent. Oils, vol. 8, no. 6, pp. 968-988, 2021.
[48]	Michael Armstrong, Stephen Taylor, Armstrong's handbook of human resource management practice, 13 ed., Kogan Page Limited, 2014.
[49]	A. Alanazi, "The impact of talent management practices on employees’ satisfaction and commitment in the Saudi Arabian oil and gas industry," International Journal of ADVANCED AND APPLIED SCIENCES, vol. 9, pp. 46-55, 2022.
[50]	Iskandar Hasan Tan Abdullah, et al., "Conceptual Framework of Talent Management Affecting Employee Performance of State Government Employees in Malaysia," PSYCHOLOGY AND EDUCATION, vol. 57, pp. 369-376, 2020.
[51]	Marcia J. Avedon, Gillian Scholes, "BUILDING COMPETITIVE ADVANTAGE THROUGH INTEGRATED TALENT MANAGEMENT," in Strategy-Driven Talent Management, Jossey-Bass, 2010, p. 102.
[52]	S. Shaaban, "The Mediation Role of Employees Engagement in the Relationship between Talent Management and Talent Retention in Military Production Factories in Egypt," International Journal of Business and Management, vol. 13, 2018.
[53]	Muhammad Mujtaba, Muhammad Shujaat Mubarik, Kamran Ahmed Soomro, "Measuring talent management: a proposed construct," Employee Relations: The International Journal, vol. 44, pp. 1192-1215, 2022.
[54]	Fred Luthans, et al., "The Psychological Capital of Chinese Workers: Exploring the Relationship with Performance," Management Department Faculty Publications, 2005.
[55]	Fred Luthans, et, al., "The Development and Resulting Performance Impact of Positive Psychological Capital," HUMAN RESOURCE DEVELOPMENT QUARTERLY, 2010.
[56]	Fred Luthans, et al., "More evidence on the value of Chinese workers' Psychological Capital," The International Journal of Human Resource Management, 2008.
[57]	Lukman Adams,et al., "Talent management: the way out of poor task performance," INDUSTRIAL AND COMMERCIAL TRAINING, vol. 54, pp. 623-636, 2022.
[58]	Kübra Özdilek, et, al., "The Mediating Role of Positive Psychological Capital of the Relationship Between Visionary Leadership and Talent Management According to Teacher Perceptions," Osmangazi Journal of Educational Research, vol. 8, pp. 18-38, 2021.
[59]	Songshan (Sam) Huang,et al., "Relative effects of human capital, social capital and Psychological Capital on hotel employees’ job performance," International Journal of Contemporary Hospitality Management, vol. 33, pp. 448-466, 2021.
[60]	David Sweetman, et, al., "Relationship between Positive Psychological Capital and Creative Performance," Canadian Journal of Administrative Sciences, 2010.
[61]	Suzanne J. Peterson, et al., "Psychological Capital and Employee Performance: a latent growth modeling approach," PERSONNEL PSYCHOLOGY, vol. 64, p. 427–450, 2011.
[62]	Youssef M. Abu Amuna1, Samy S. Abu-Naser2, Mazen J. Al Shobaki 3, Yasser A. Abu Mostafa 4, "Fin-Tech: Creative Innovation for Entrepreneurs," International Journal of Academic Accounting, Finance & Management Research, vol. 3, 2019.
[63]	D. M. S. Yasmine Osama Anwar, "Fin-Tech: From Evolution to Revolution, MENA Region," Central Bank of Egypt, Cairo, Egypt, 2017.
[64]	Jun-Jun Tang, “Psychological Capital and Entrepreneurship Sustainability, Frontiers in Psychology”, 2020.
[65]	Tazeem Ali Shah, et, al., “Psychological empowerment and employee attitudinal outcomes The pivotal role of psychological capital”, Management Research Review, 2019.