Strategic human resource management bundles and turnover intention in the nonprofit sector: the mediating role of psychological capital

This study investigates the longitudinal relationships between ability-enhancing, motivation-enhancing, and opportunity-enhancing strategic human resource management (SHRM) bundles and employees’ turnover intention, with psychological capital conceptualised as a mediating mechanism. The research is theoretically anchored in the Conservation of Resources theory. Data were collected across two waves, separated by a six-month interval, from 270 paid employees nested within 30 nonprofit organisations, and analysed using a multilevel modelling approach via hierarchical linear modelling. The findings indicate that ability-, motivation-, and opportunity-enhancing bundles are positively related to employees’ psychological capital and negatively associated with turnover intention. Psychological capital was found to partially mediate the relationship between SHRM bundles and turnover intention. Notably, among the three bundles, the opportunity-enhancing bundle exhibited the strongest association with the development of psychological capital, whereas the motivation-enhancing bundle demonstrated the strongest relationship with turnover intention. Given the paucity of research examining the interrelationships among SHRM bundles, psychological capital, and turnover intention within nonprofit organisations and Eastern contexts, this study addresses important theoretical, methodological, and empirical gaps in the strategic human resource management, positive psychology, and nonprofit management literature.