Unveiling the interplay of psychological capital, family business, and gender on firm performance during COVID-19

Abstract

This study examines the complex relationships between Psychological Capital, family business, ownership, gender, and firm performance during the COVID-19 pandemic. The study examines the effects of these variables on firm performance and explores the empirical interaction effects. The findings reveal that Psychological Capital positively influences firm performance, supporting the hypothesis that owners with higher Psychological Capital contribute to better business outcomes. Additionally, family business and ownership significantly impact firm performance, indicating that family involvement and concentrated ownership drive organizational success. Surprisingly, the results indicate a negative impact of gender on firm performance, suggesting that firms managed by women are perceived as less successful. The study also explores the interaction effects and finds that the positive relationship between Psychological Capital and firm performance is amplified in family businesses. However, gender does not moderate this relationship, indicating that women Owners face challenges in translating their Psychological Capital into firm performance in the emerging economy of Ecuador. The results provide insights into the complex dynamics within family businesses and underline the need to address gender disparities and promote inclusive Ownership practices. Implications are discussed.