Randomized trial examines the impact of psychological capital on expatriate performance, suggesting benefits for multinational corporations.
The international management literature has paid limited attention to expatriates’ psychological capital (PsyCap), which may act as a key determinant of success on international tasks. Drawing upon social cognitive theory, this research develops a novel theoretical model to unpack the mechanisms, conditions, and outcomes of PsyCap on international tasks. Paired data from 221 expatriates and their supervisors/foreign colleagues revealed a positive effect for PsyCap on expatriates’ cross-cultural competence, which further impacts both their short-term and long-term performance. In addition, we found that a low error aversion attitude strengthened the positive indirect relationship between PsyCap and both short-term and long-term performance via cross-cultural competence. Our findings reorient international management research towards positive psychology, with important implications for MNEs’ expatriate development, organizational support, and error management culture to foster expatriate success. JEL Classification: M12, M16
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Wang et al. (2026) studied this question.
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