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  1. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 THE ROLE OF PSYCHOLOGICAL CAPITAL AND THE MEDIATING MECHANISM OF THRIVING AT WORK ON EMPLOYEE WORK INNOVATION IN THE HOSPITALITY INDUSTRY VAI TRÒ CỦA VỐN TÂM LÝ VÀ CƠ CHẾ TRUNG GIAN CỦA SỰ TRƯỞNG THÀNH TRONG CÔNG VIỆC CHO SỰ ĐỔI MỚI TRONG CÔNG VIỆC CỦA NGƯỜI LAO ĐỘNG TRONG NGÀNH CÔNG NGHIỆP KHÁCH SẠN Pham Hong Liem*, Le Tran Tuan*, Nguyen Xuan Lan *University of Khanh Hoa, University of Economics, The University of Da Nang letrantuan@ukh.edu.vn ABSTRACT Reaching the “Tipping point” of Vietnamese tourism requires tourism businesses to improve the quality of services and employees' capabilities. Employee work innovation is considered a solution to balance the benefits between service providers and customers. This study proposes an addiction to predictive factor (psychological capital) for thriving at work, and explores the mediating mechanism of thriving at work between psychological capital and employee work innovation. With 627/650 samples collected from hotels and resorts in Khanh Hoa province, a hierarchical linear model is used to test hypotheses. This may be a pioneering study that explores the prerequisite role of psychological capital for thriving at work, and the mediating mechanism of thriving at work for employee work innovation in the hospitality industry. This result has important implications for the sustainable development of the hospitality industry, through human resource management and the strategies for the development of value-added products and services. Keywords: Employee work innovation, psychological capital, thriving at work, hospitality industry, accommodation facitilies. TÓM TẮT Việc chạm ngưỡng “điểm bùng phát” của du lịch Việt Nam đòi hỏi các doanh nghiệp du lịch nâng cao chất lượng dịch vụ và năng lực của người lao động. Sự đổi mới trong công việc của người lao động được xem là giải pháp cân bằng lợi ích giữa nhà cung cấp dịch vụ và khách hàng. Nghiên cứu này đề xuất thử nghiệm biến tiền đề vốn tâm lý đối với sự trưởng thành trong công việc và khám phá cơ chế điều tiết của sự trưởng thành trong công việc giữa vốn tâm lý và sự đổi mới trong công việc của người lao động. Với 627/650 mẫu thu được từ các khách sạn và khu nghỉ dưỡng tại Khánh Hòa, mô hình hồi quy thứ bậc được sử dụng để kiểm định các giả thuyết. Đây có thể là nghiên cứu tiên phong khám phá vai trò tiền đề của vốn tâm lý cho sự trưởng thành trong công việc, và cơ chế trung gian của sự trưởng thành trong công việc cho sự đổi mới trong công việc của người lao động trong ngành công nghiệp khách sạn. Kết quả này có ý nghĩa quan trọng cho sự phát triển bền vững của ngành khách sạn, thông qua công tác quản trị nguồn nhân lực và chiến lược phát triển các sản phẩm và dịch vụ gia tăng. Từ khóa: Sự đổi mới trong công việc người lao động, vốn tâm lý, sự trưởng thành trong công việc, ngành công nghiệp khách sạn, cơ sở lưu trú. 1. Introduction Today, the businesses want to creat a competitive advantage and develop sustainably, internal businesses must be stable via ownership and creative human resources and employee work innovation are vital. Especially in tourism service, the more customers have choices, the less they feel unsatisfied (Prahalad & Ramaswamy, 2004). That make presssure on hotels and resorts in trying to meet their needs via quality products and services. Therefore, businesses need employees who have positive motivation, can create positive attitudes and behaviors at work. It is the foundation for them feel more excited to learn skills constantly 404
  2. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 and pass challenges in the process of providing services. So, thriving at work is considered a employees's sustainable aspect in the organization (Spreitzer et al., 2012). Moreover, thriving at work is also a positive results and an effective maintenance at work (Porath et al., 2012). Therefore, psychological capital and thriving at work are the factors that can contribute sustainable development of tourism businesses, especially accommodation facilities. The employee work innovation in theory and practice is vital. It improve competitiveness efficiency, quality, productivity and brand of the business ( Vilanova et al., 2009). The customers always care about service's characteristics (uniqueness and difference). In this field, The employees need more flexibility, creativity and skills for improving competitiveness and increasing customer's satisfaction (Ayupp & Chung, 2010). Therefore, this is an extremely vital problem for human resources to build a team who are brave, dynamic, competent and creative to be able to identify, understand, analyze and respond customer needs as quickly as possible (Stock & Hoyer, 2005). There have been relevant studies about psychological capital, thriving at work on increasing employee work innovation in organization. The psychological capital is considered as an vital factor for helping employees to have a thriving at work (Paterson et al., 2014). It is also a direct foundation to form positive attitudes and behaviors (Avey et al., (2010), particularly a their creativity in work (Sweetman et al., 2011). Some other scholars mention thriving at work play an efficient role on employees (Shan, 2016). However, those studies also stopped at a single-level model. Therefore, the role of factors in the same study model, especially the mediating mechanism of thriving at work in relationship between psychological capital and employee work innovation in tourism service, has not been considered at the same time. Moreover, psychological capital is considered to be a core factor that has more vital effect on the attitude and behavior of employess than other characteristics (Avey et al., 2010). There are still a lack of extensive studies about the impact of psychological capital on solving problem and employee work innovation (Luthans et al., 2013). Baseing on the theoretical discussion of psychological capital (Luthans et al, 2007) and job characteristics (Oldham & Hackman, 2010) in human resource management, this study proposes employees's positive motivation are basis for them to have thriving at work, and form innovative ideas as well as employee work innovation. Therefore, the expectation of this study can make practical application implications to improve the accommodation facilities's competitiveness, brand value of the organization are increased, too. As we known, there have never been previous studies which examined the relationship between psychological capital, thriving at work and employee work innovation in Hospitality in Vietnam before, especially in tourism service. 2. Literature Review 2.1. Employee work innovation The employee work innovation is defined as the employee's autonomy in building, developing and applying new processes, methods or products to improve performance and gain the benefits for individuals, groups or organizations (Carmeli & Spreitzer, 2009; Janssen, 2000; Scott & Bruce, 1994; Yuan & Woodman, 2010). For individuals, the employee work innovation is the activities of individuals which involved in initiating and proactively coming up with useful ideas, processes, products, or new mechanisms. The employee work innovation is the foundation that promotes efforts in the creation of new products and services (Janssen, 2000). For service, employee innovation is the result of customer interaction (Hartline et al., 2000). In this study, the author focuses on considering the employee work innovation is as multi-stage process (Scott & Bruce, 1994). Many previous studies have shown the different benefits of employee work innovation such as: Job satisfaction, well job performance, promoting collaboration as well as interpersonal communication at work. (West & Anderson, 1996), competitive advantages creating for businesses (Scott & Bruce, 1994; 405
  3. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 Yuan & Woodman, 2010) and also positive conflicts (Janssen et al., 2004). Moreover, it can also understand is the employee's clever when detecting and solving the problem. So the employee work innovation is not only improves the performance of employees, but also reduce the stress and pressure in their work. These will stimulate employees to explore and learn more knowledge, professional skills, so creating more excitement to develop themselves (West & Anderson, 1996). 2.2. Psychological capital and the relationship with thriving at work In recent years, the research of Organization Behavior (OB) change a lot when recognizing each employee as a platform to help organizations deal with challenges, as well as promote their strengths and willingness at work ( Wright, 2003). From this perspective, psychological capital was born as a positive orientation (Luthans & Youssef, 2007). Psychological capital is the positive state of psychological manifestations in the development of an individual. This is a general concept which consisting of four basic components: (i) Confidence that means the ability to complete tasks, the ability to deal with challenges, and willpower to succeed; (ii) Optimism that always makes things positively, and has maintain a positive attitude in the future; (iii) Resilience is the ability of recovering quickly, even change and grow more and more after difficulty or failures; (iv) Hope that has positive motivation to achieve goals via various means (Luthans et al., 2004; Luthans & Youssef, 2007). H1: Psychological capital positively affects the thriving at work. 2.3. Thriving at work, and the relationship with employee work innovation The development of science and technology have made consumers increasingly careful in assessing the quality of services were provided. This is a great pressure for businesses and workers in competing efforts to survive, as well as constantly learning to improve themselves and it will be appropriate for the specific working Thriving at work is considered the way that make workers respond to difficulties or challenges in long - term. According to Spreitzer et al. (2005). Thriving at work is a psychological state which showing the individual's experience of vitality and learning ability in work. Vitality relate to the feeling of survival and think positive and the sufficient energy preparation for working while learning ability means the acquirement and manipulation of skills and knowledge to increase personal capacity. These are the basic foundations which reflecting of awareness (learning) and emotions (energy) of personal promotion. Survival and learning capacity are two vital components for workers's promotion. If employees, who have negative moods and lack of energy, are trying to learn and gain experience in a difficult work environment, they will be easy to give up. As a result, there is no thriving at work of workers. When workers learn more problems and progress at work, they give some conditions and identify resources for assessing the current situation, thereby that will orient appropriate action. Amabile (1998) showed that on-the-job learning is necessary for employees to improve their skills, which is a solid foundation for all work-related behaviors. On that basis, they can realize the possible performance of innovative solutions and new initiative at work. Moreover, learning also helps workers improve their abilities and makes them gain more confidence for approaching to new things. Besides that, when workers achieve an excited mood/motivation to participate many activities related to work. These are vital factor to help employees pass common standards and have creative thinks and actions. It includes the positive emotions when workers are sufficiently accumulated power to carry out a specific action or task (Quinn & Dutton, 2005). At that time, it is the excitement at work that will help employees deal to challenges better (Dutton et al., 2001). Many recent researchs show that when workers have a improvement in work, they will adapt to the work form, as well as promote personal growth (Porath et al., 2012). By promoting employee self-growth, thriving at work has contributed to creat advantage conditions for them to complete their work (Spreitzer 406
  4. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 et al., 2005). Therefore, thriving at work is considered as a motivation for employee work innovation (Carmeli & Spreitzer, 2009). So on, the second hypothesis is proposed: H2: Thriving at work positively affects employee work innovation. 2.4. Thriving at work play a mediating role Thriving at work in organization is a factor in increasing employee work innovation. It is a psychological state which form the positive workers's behaviors. Therefore, thriving at work play a mediating role is significant and moreover, it can also helps individuals adapt to the working framework as well as promote their growth (Wallace et al., 2013). Combining between thriving at work and employee work innovation has expanded viewpoint about vitality of thriving at work for employees. Employee work innovation is the basis for an organization's efficient work. When workers have same goals, they will share their creative ideas with colleagues and supervisors and work together effectively. Knowledge, experience were shared as well as employee interaction, has increased the behavior and their employee work innovation, esspecially in the service (Hu, 2009). Previous studies, for example, Kumar & Uzkurt, 2010 also concluded that employees have high confidence are creative people and tend to promote innovative behaviors. On the other hand, the psychological capital plays an important role in increasing learning capacity, professional skills, as well as problem solving and employee work innovation (Luthans et al., 2013). The next hypothesis is proposed: H3: Thriving at work mediates the relationship between psychological capital and employee work innovation. 2.5. Theoretical research model From the literature review and hypotheses, the theoretical research model is shown in Figure 1. H3 H2 Psychological H1 Thriving at work Employee work capital innovation Figure 1: Theoretical research model 3. Research Methodology The design of the study considered as the causality category test. The research has two steps, including: preliminary (qualitative) and formal (quantitative) studies. Firstly, the author has looked for relevant documents. After that, according to experts’s advice in Khanh Hoa, we designed the appropriate questionnaires with calibrated scale. The experts were lecturers or managers in the hospitality industry. This research was proceeded via the survey method, using questionnaires to examine the research model and evaluate hypotheses. A quantitative preliminary study with 30 questionnaires was surveyed employees working in hotels and resorts. The results showed the relevance between content and concepts. The formal study was proceeded with 627/650 valid samples which collected from May 2016 to March 2017 at hotels and resorts in Khanh Hoa. The use of scales from previous studies can be considered relevance in quantitative studies. Specifically, the psychological capital which were tested by Nguyen Thi Mai Trang (2014) in Vietnam, has four components (with 13 indicators), including: (i) the hope of reaching goals, having solutions to solve problems, and ways to achieve goals (Snyder et al., 2002); (ii) optimism and belief in good things 407
  5. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 (Carver & Scheier, 2002); (iii) resilience of recovering the failure, generosity, overcoming anger (Block & Kremen, 1996); (iv) confidence in analysing problem, job presentation, communication, and presentation (Parker, 1998) These were eleven items measured for Thriving at work (with two components: survival energy and learning capacity) were adapted from Carmeli & Spreiter (2009). And finally, six items on the scale of Scott & Bruce (1994) were used to measure Employee work innovation. The five-point Likert scale was used to facilitate measurement. The software SPSS 18.0 was used for supporting. 4. Results and Discussion 4.1. Results 4.1.1 Reliabilities and Correlation coefficients Reliability and correlation between research concepts (Table 1): psychological capital (PC), thriving at work (TW),employee work innovation (EW) were shown as well as control variables including working hours of people labor (WT), star rating of accommodation (SR). The results were shown in the correlation matrix provided the initial data supporting the proposed hypotheses. Specifically, the correlation coefficients indicated a significant relationship between psychological capital and thriving at work (r = 0.624, p <0.01) as the relationship between thriving at work and employee work innovation (r = 0.513 , p <0.01). Both coefficients were relevant with the hypotheses H1 and H2. Table 1: Descriptive statistics and correlation between research concepts Stt Variables Mean S.D 1 2 3 4 5 WT1 3,69 1,48 1 SR2 3,74 0,89 -0,015 1 PC3 3,66 0,57 0,053 0,202 0,862 TW4 3,66 0,69 -0,009 0,207 0,624 0,908 EW5 3,51 0,73 0,021 0,268 0,502 0,513 0,859 P/s: p < 0,01; reliabilities (in parentheses) appear on the diagonal. 4.1.2. Evaluating the hypothesis For evaluating the hypothesis in research model, the author used hierarchical linear modeling (Bryk & Raudenbush, 1992). The result of evaluation was shown psychological capital has a positive effect on employee's thriving at work (Table 2) and contributed significantly into explanation the change of dependent variables (R2 = 0.398, ΔR2 = 0.355) . Table 2: Linear Regression for employee work innovation Concept Model 1 Model 2 WT -0,006 -0,040 SR 0,207 0,083 PC 0,609 R2 0,043 0,398 ΔR2 0,355 P/s: dependent variables: TW, p < 0,001. 408
  6. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 The regression results in Model 2 (Table 2) reflected that when the psychological capital (independent variable) was regressed to thriving at work (intermediate variable) together with the controlled variables (Working time, hotel star), the regression coefficient was considered to be significant for the relationship between these two factors (0, = 0.609; p <0.001, R2 = 0.398; ΔR2 = 0.355). So hypothesis H1 was supported. Hypothesis H2 suggested that thriving at work has a positive effect on employee work innovation. The results of hypothesis analysis were presented in Model 2 (Table3). Table 3: Linear regression results for employee work innovation Concept Model 1 Model 2 WT 0,025 0,028 SR 0,268 0,169 TW 0,478 R2 0,072 0,291 ΔR2 0,119 P/s: dependent variables: EW, p < 0,001. The regression results in Model 2 (Table 3) reflected that when thriving at work (mediating variable) was regressed on the employee work innovation (dependent variable), the regression coefficient was seem to be significant. (β = 0.478; p <0.001, R2 = 0.291; ΔR2 = 0.1119). This result supported second hypothesis (H2). The third hypothesis (H3) stated that, thriving at work play a mediating role for relationship between psychological capital and employee work innovation. Research used the mediation test of Baron & Kenny (1986) has required: i. Independent variables (psychological capital) was used for predicting dependent variables (employee work innovation) and mediating variables (thriving at work). ii. The mediating variable must also predicted the dependent variable. iii. The relationship between the independent variable and the dependent variable will reduce when the mediation variable participated in. Table 4: Linear regression results for employee work innovation Concept Model 1 Model 2 Model 3 WT -0,006 0,001 0,001 SR 0,207 0,175 0,148 PC 0,467 0,279 TW 0,309 R2 0,043 0,280 0,334 ΔR2 0,237 0,054 P/s: dependent variables: EW, p < 0,001. Psychological capital (PC) was a significantly predicted factor to employee work innovation (EW) (Model 2 - Table 4.), also effected on thriving at work (TW) (relevant to Hypothesis 1). So (i) requirement was adapted. Next, the results (see Model 3 - Table 4.) also showed that TW (mediating variable) has a significant impact on EW (dependent variables with β = 0.309, p <0.001) adapted next 409
  7. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 requirement (ii). Finally,PC (independent variable) was nolonger a significantly predicted factor to EW (because the results showed that its influence level was significantly reduced after mediating variable participated in the test(with β = 0.279; p <0.001). This suggests that employees whose a positive motivation will have thriving at work, thereby employee work innovation will be increased too. So, Hypothesis 3 was supported 4.2. Dicussion This study is an significant proposal to human resource management for the sustainable development of accommodation facilities. This is an interesting study which considered the impact of psychological capital on thriving at work.The result will promote employee work innovation in hotels and resorts in Khanh Hoa. It has shown the importance of learning, perseverance and determination of employees working in the tourism. Those experiences will help them have the capacity for identifying all difficult proactively, find appropriate solutions and catch opportunities efficiently. Therefore, determining the factors that create the passion or the capacity of workers are always concerned by tourism businesses. The results which showed positive influence of the psychological capital on employees' thriving at work, have oriented of action for managers. It provided an evidence that the psychological capital is a "positive judgment in every situation, as well as the ability to succeed, based on the positive efforts and perseverance" of a individual (Luthans & et al., 2007, p.550). The employees who believe in their goals, always have optimism in all situations, and believe in themselves are vital resources that businesses can not be ignored. This result is also relevant to the research of Nguyen Thi Mai Trang (2014) about the positive influence of psychological capital on employee efforts; or Spreitzer et al's study (2012) showed that thriving at work of employees members was a key factor to create competitive advantages for businesses (Spreitzer et al., 2005), discover and look for new solutions (Niessen et al., 2012). In addition, the results which has showed that thriving at work has a positive impact on employee work innovation, also was relevant to the research of Carmeli & Spretizer (2009). Another interesting result, we discovered discovered the thriving at work play a mediating role in relationship between psychological capital and employee work innovation in hotels and resorts. All these results increased experimental model precisely. When workers have a positive motivation, it increased their vital energy and ability to learn at work; for creating positive attitudes and behaviors and employee work innovation. This study contributed to understand employee work innovation better by exploring how employees become more innovative in work. In service bussiness and accommodation facilities, employee work innovation plays a vital role in business environment. And this study has made certain contributions in theory and practice. As we known, there have never been previous studies which examined the relationship between psychological capital, thriving at work and employee work innovation in hospitality in Vietnam before. Moreover, there also have never been studies which examined the mediating mechanism of thriving at work in the relationship between psychological capital and employee work innovation in this field. Our study showed that thriving at work seemed an vital mediating factor in increasing employee work innovation. Moreover, the result of analysis about mediating mechanism has taken to aware of understanding of workers' positive motivation and development in increasing employee work innovation better. Besides that, this study provided overview sight and evidence for supporting the point issued that thriving at work is an vital self-regulation mechanism, which was come from individual's mind, and helped them not only to finish work by themselves, but also promoted their growth. 410
  8. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 Our study not only contributied to theory, but also provided practical significance for managers and researchers. If workers have a positive motivation, they will gain more thriving at work and employee work innovation will be increased. On the other hand, if organizations pay more attention to the employees’s mental health, they will get more energy to learn knowledge, skills and employee work innovation will be increased, too. This was a reliable basis for the manager can give appropriate decisions. 5. Conclusion In conclussion, the study contributed to understand better about the link between psychological capital; thriving at work and employee work innovation, especially the employee who worked in hospitality services. Today, the workforce today not only concerned with job satisfaction, but also work environment that can get them more positive motivation to learn and promote them better day by day (Spreitzer et al., 2012). So on, this study proposed some suggestion: - The result has demonstrated the positive influence of psychological capital on thriving at work and employee work innovation. Therefore, accommodation facilities need to focus on managing human resource, particularly the function of training and developing human resources. Since then, it can be created an environment that helps workers to have psychological capital. Specifically, the accommodation facilities should organize training activities, and sharing experiences to help employees promote their strengths and face to difficulties confidently. - The result has showed that the accommodation facilities can encourage employee work innovation via thriving at work which was demonstrated by the survival energy and learning ability. Therefore, manager should create a cultural environment in sharing knowledge and learning opportunities for employees. Because employees are expected will tend to be more satisfied with their behaviors and relationships in workplace. This is the foundation to help workers become more thriving at work. However, limitations of study have still existed. Firstly, the research sample were collected from participants in the accommodation facilities in Khanh Hoa – Vietnam. Thereby, the findings of this study cannot get overview for all. Secondly, we used cross-sectional study method. It limited our ability to test causality or duality of relationships. Thirdly, the study has just only considered the overview the relationship between the concepts, without evaluating specific impact. Finally, the variety of concepts, and correlations in the study was still limited. These limitations will be the suggestions for further studies. REFERENCES [1] Amabile, T. M. (1998). How to kill creativity. Harvard Business Review, 76, 77-87. [2] Ayupp, K., & Chung, T. (2010). Empowerment: Hotel employees’ perspective. Journal of Industrial Engineering and Management, 3(3), 561-575. [3] Avey, J., Luthans, F., & Youssef, C. (2010). The additive value of positive psychological capital in predicting work attitudes and behaviors. Journalof Management, 36, 430-452. [4] Avey, J., Reichard, R., Luthans, F., & Mhatre, K. (2011). Meta-analysis of the impact of positive psychological capital on employee attitudes, behaviors and performance. Human Resource Development Quarterly, 22(2), 127-152. [5] Baron, R.M., & Kenny, D.A. (1986). The moderator – mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182. [6] Bryk, A.S. and Raudenbush, S.W. (1992). Hierarchical linear models: Applications and data analysis. Methods. Newbury Park, CA: Sage. [7] Carmeli, A., & Spreitzer, G. (2009). Trust, connectivity, and thriving: Implications for innovative behaviors at work. The Journal of Creative Behavior, 43(3), 169-191. 411
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