How does psychological capital shape entrepreneurial intention? The mediating role of opportunity recognition

Abstract

Entrepreneurial intention represents a critical step in the development of future career as an entrepreneur. However, the mechanisms through which entrepreneurial intentions are formed remain insufficiently understood. Drawing on the resource-based theory of entrepreneurship and the extended-self theory, this study examines how psychological capital, a key personal resource, and psychological ownership toward entrepreneurial ideas, shape opportunity recognition and, in turn, is associated with entrepreneurial intention. Using a multi-wave survey design, data were collected from 185 students in a vocational college in China. Structural equation modeling was employed to test the proposed relationships. Findings indicate that psychological capital was positively associated with entrepreneurial intention via opportunity recognition. In addition, psychological ownership toward entrepreneurial ideas moderated the relationship between psychological capital and opportunity recognition. However, our proposed moderated-mediation hypothesis was not supported. The findings contribute to entrepreneurship literature by identifying additional psychological pathways to cultivate entrepreneurial intentions. Practically, the results offer insights for entrepreneurship education and entrepreneurship programs aimed at fostering the entrepreneurial development of students in secondary and vocational programs.