The mediating role of individual adaptability in the relationship between psychological capital and psychological well-being: evidence from Uganda’s small enterprises

Abstract

Purpose This paper aims to investigate whether individual adaptability mediates the relationship between psychological capital and psychological well-being (PWB) of Ugandan small enterprise employees. Furthermore, the paper examines whether psychological capital and individual adaptability also affect PWB.

Design/methodology/approach A cross-sectional survey design using a quantitative approach was used in this study. Data were collected from 726 employees of small enterprises in Uganda using a self-administered questionnaire. Data were analysed using the Statistical Package for Social Scientists and uploaded into AMOS version 23. The hypotheses were tested using the structural equation modelling technique.

Findings Results confirm that individual adaptability partially mediates the relationship between psychological capital and PWB. Findings further indicate that psychological capital is positively related to individual adaptability and that individual adaptability is positively related to PWB.

Research limitations/implications First, the sample of this study consisted of employees working with small enterprises in Uganda with different demographic characteristics; thus, the generalizability of these findings to other sectors or contexts needs to be established. Secondly, the study was quantitative in nature. This study has managerial implications in a way that managers should have people management skills that support their employees to develop psychological capital and individual adaptability.

Originality/value This study may be among the first to demonstrate that individual adaptability partially mediates the relationship between psychological capital and PWB in the context of small enterprise employees of Uganda, an African developing country. Consequently, this study contributes to both theory and literature via the broaden-and-build theory and the complex adaptive systems theory, hence adding to the scant existing literature on psychological capital, individual adaptability and PWB.