Examining the Effects of Psychological Capital on Organisational Citizenship Behaviour: Employee Engagement as a Mediator- The Case of Sarawakian Industry Revolution 4.0 Youths

Abstract

Industry Revolution 4.0 offers substantial promise in ameliorating economic, environmental, and living standards. Policy makers of Sarawak, in congruence with the national agenda for sustainability has instituted strategic plans to harness benefits of Industry Revolution 4.0. Nevertheless, feasibility challenges remain- particularly among youths who play increasingly important roles in the economy, due to their lack of resources. The worrying situation of youth unemployment exacerbates the mental stress experienced by employees and thus, violates the symbiotic relationship shared within their respective organisations. Following the theoretical void in the JD-R theory which is its inadequacy to explain how cognitive resources will generate job resources. While studies have suggested linkages between EE and PsyCap to OCB respectively, emphasis on the individual's capacity to generate his own long-term job-personal resources as suggested by job crafting proposition is lacking. Thus, this study seeks to examine the effects of psychological capital (PsyCap) on organisational citizenship behaviour (OCB) among youth participants of Industrial Revolution 4.0 in Sarawak. This study further examines the mediating role of employee engagement (EE) on the proposed relationship. Data collected from 251 working youths in Sarawak who were trained in Industrial Revolution 4.0 initiatives encompassing areas of digital solutions, soft-skills, and Technical and Vocational Education and Training (TVET) was analysed using the Partial Least Squares Structural Equation Modelling (PLSSEM) technique. Psychological capital was found to influence organisational citizenship behaviour, while employee engagement mediates the relation. This study offers managerial, policy-making, and economic implications. First, organisations may be enlightened on the importance of personal resources at fostering task and social expansion. Human resource practitioners may find this study useful in calibrating intervention exercises. Second, policymakers may formulate policies that will establish youth conviction in economic participation based on the potential findings. Third, the digital transformation across economic sectors must be complemented with skilled and adaptable work talents. Insights on how psychological resources will maximize business potential may be found. In attempt to address deficiencies in the Job Demands-Resources Theory; psychological capital, employee engagement, and organisational citizenship behaviour are integrated into a single model.