2 Impact of Psychological Capital on Innovative Performance and Job Stress

Research on positive organizational behavioral has explored the value added contributions of psychological capital in predicting various workplace outcomes. Yet the relationship between psychological capital and innovative job performance has largely been ignored. The current study investigated the effects of psychological capital on supervisory-rated innovative job performance. The study also examined the impact of psychological capital on job stress. Data collected from a diverse sample of 237 employees, from various organizations in Pakistan, provided good support for the hypotheses. The results indicated that psychological capital was positively related innovative job performance and negatively related to job stress. High PsyCap individuals were rated as exhibiting more innovative behaviors, by their supervisors, than low PsyCap individuals. Similarly, our findings also reveal that individuals with high psychological capital reported lower levels of job stress as compared to their low PsyCap counterparts