PSYCHOLOGICAL CAPITAL AND NANO ENTERPISE SUSTAINABILITY IN PLATEAU STATE, NIGERIA: THE MODERATING EFFECT OF ENTREPRENEURIAL ORIENTATION.

Abstract

This study examined the effect of Psychological Capital (PsyCap) on the sustainability of Nano-enterprises and investigated the moderating role of Entrepreneurial Orientation (EO) in this relationship. Guided by the Resource-Based View and Psychological Capital Theory, the study adopted a quantitative research design. Data were collected from 255 owners of Nano-enterprises in Plateau State, Nigeria, selected from a population of 2,912 using structured questionnaires. Structural Equation Modeling (SEM) was used to analyze the data and test the study's hypotheses. The findings revealed that Psychological Capital had a significant positive effect on the sustainability of Nano-enterprises. However, Entrepreneurial Orientation did not significantly moderate the relationship between Psychological Capital and sustainability. The study concludes that Psychological Capital is a critical driver of Nano-enterprise sustainability, while Entrepreneurial Orientation exerts an independent rather than a moderating influence. It is recommended that programs aimed at enhancing the sustainability of Nano-enterprises should prioritize the development of owners' psychological capital, given its significant positive influence on enterprise sustainability. Although entrepreneurial orientation did not significantly moderate the relationship between psychological capital and sustainability, it should still be promoted as an independent capability that contributes to enterprise sustainability.