Enhancing Entrepreneurs' Performance Through Psychological Capital and Crisis Management: Advancing Decent Work and Economic Growth in Indonesian SMES

Objective: Entrepreneurs in the tourism industry face dynamic and unpredictable environments where resilience, preparedness, and adaptability are crucial for fostering sustainable economic growth. This study aims to explore how Psychological Capital (PsyCap) and Crisis Management Approaches influence the performance of Indonesian SMEs in the tourism sector, advancing SDG 8 by promoting decent work and economic growth. Theoretical Framework: This study use Psychological Capital (PsyCap) and Crisis Management Approaches to understand what factors influence the performance of Indonesian SMEs in the tourism sector, with a focus on fostering sustainable development in line with SDG 8. Method: Adopting a quantitative study and Structural Equation Modeling (SEM-PLS) methodology, data were collected and analyzed from 360 entrepreneurs to explore these relationships. Results and Discussion: The results demonstrate a significant positive relationship between PsyCap and entrepreneurial performance, emphasizing that entrepreneurs with higher psychological resources perform better in navigating challenges and uncertainties. Additionally, Research Implications: The findings provide actionable insights for entrepreneurs and policymakers, underscoring the importance of developing psychological resources and implementing robust crisis management strategies. Originality/Value: The study highlights the critical role of crisis management factors, specifically Crisis Leadership and VUCA Intelligence, in enhancing the effectiveness of PsyCap. These factors enable entrepreneurs to adapt to volatile and complex environments, further improving their performance during uncertain conditions.