HOW PSYCHOLOGICAL CAPITAL MEDIATES THE RELATIONSHIP BETWEEN THRIVING AT WORK AND HAPPINESS AT WORK? A CROSS-SECTIONAL RESEARCH FOR TOURISM SECTOR OF INDONESIA

Abstract

The aim of this research investigation was to explore the relationship between the dimension
of thriving at work and work happiness for the employees of the tourism sector of the
Indonesian economy. In addition, the relationship between psychological capital and work
happiness was also meant to explore. Finally, the role of psychological capital as a mediator
between the relationship of work thriving and work happiness was also investigated for the
tourism industry of the Indonesian economy. A total number of 250 questionnaires were sent
to different tourism agencies working in Indonesia and 231 responded back accurately. The
sampling technique used for this purpose was the combination of network as well as purposive
sampling technique. The exogenous variable was Thriving at work, the endogenous variable
for this study was happiness at work while the mediating variable of the study was
psychological capital. This research investigation employed Smart-PLS software for estimation
purpose. This study employed Smart-PLS version 3.0 for the estimation of outer loadings,
construct reliability and validity, discriminant validity, SEM results in terms of total effect,
specific indirect effects and indirect effects. The bootstrapping process was utilized in order to assess the significance of association between the variables. Learning as the first dimension is
positively and significantly related to both dimensions of work happiness; contentment and
hedonic. Vitality is negatively and insignificantly related to both dimensions of work
happiness. Psychological capital as an exogenous variable negatively and significantly related
to work happiness in the tourism industry of the Indonesian nation. Vitality is only related to
psychological capital positively. The psychological capital as a mediating plays a significant
role in the relationship between learning and work happiness in a positive direction while the
same plays a significant negative role in the relationship between vitality and work happiness.
It is implied that the management and policymakers in the tourism industry of Indonesia should
promote a learning environment in their tourism industries for creating work happiness in order
to achieve maximum satisfaction of their employees. It will enable them to achieve
organizational success through the happiness of their employees.