Does Psychological Capital (PsyCap) strengthen Organisational Sustainability? Exploring the Mediating Role of E-HRM usage

Abstract

This study explores the mediating role of electronic Human Resource Management (e-HRM) in the relationship between Psychological Capital (PsyCap) and Organizational Sustainability. Drawing upon the components of PsyCap—hope, optimism, self-efficacy, and resilience—the research investigates how these psychological resources contribute to sustainable organizational practices when facilitated through digital HRM systems. Utilizing Structural Equation Modeling via Smart PLS, data was analyzed to assess the reliability, validity, and interrelationships among the constructs. The findings indicate a significant positive relationship between PsyCap and Organizational Sustainability, with e-HRM playing a complementary partial mediating role. This highlights the importance of leveraging psychological strengths alongside technological HRM interventions to foster sustainable practices within organizations. The study offers both theoretical and practical contributions, emphasizing the strategic integration of digital HRM tools and psychological empowerment to drive long-term sustainability. It also provides actionable recommendations for practitioners and outlines future research directions aimed at enhancing the model's applicability across different contexts and industries.