Mediating role of psychological capital in achievement goals’ impact on vocational students’ entrepreneurial readiness

Orientation: Substantial investment in entrepreneurship education did not resolve the issue of only 50% of vocational graduates finding employment, highlighting the need to foster entrepreneurial pursuits. Research purpose: To examine the impact of achievement goals on the entrepreneurial psychological readiness (EPR) of vocational high school students, as mediated by psychological capital in Pekanbaru, Indonesia. Motivation for the study: This study involved 378 vocational high school students from all available vocational fields. Data were collected with the assistance of class teachers after completing administrative processes with the school. Research approach/design and method: This research employs a quantitative methodology and is assisted by SEM-SmartPLS statistical analysis. The data collection instruments consist of four components: self-report, the Goal Measure-Revised (AGQ-R), 12 items; the PsyCap questionnaire (PCQ), 12 items and the EPR, 24 items. A two-step partial least squares structural equation modelling (PLS-SEM) approach was used to evaluate the measurement and structural models. Main findings: The relationship between achievement goals and entrepreneurship psychological readiness is completely mediated by psychological capital that this hypothesis indicates. We conclude that the relationship between achievement goals and psychological readiness for entrepreneurship through psychological capital shows a significant influence. Practical/managerial implications: The study underscored the critical role of psychological capital in enhancing entrepreneurial readiness and suggested that balancing goal orientation with psychological well-being was essential for developing entrepreneurial potential among vocational students. Contribution/value-add: This study underscores the importance of psychological capital in fostering entrepreneurial readiness, revealing its indispensable role in achieving entrepreneurial success.