Under the umbrella of positive organizational behavior (POB), the вЂњstudy and application of positively oriented human resource strengths and psychological capacitiesвЂќ, Luthans developed the concept of Psychological Capital (Psењњap) as a source of competitive advantage. Back then, the idea of investing in people for competitive advantage was considered ground-breaking. He claimed that tacit knowledge offers a long-term competitive advantage as it is unique, cumulative, interconnected and non-transferable to competitors.Д«ased on this idea, Luthans urged companies to invest in human capital management including building tacit knowledge rather than hiring a skilled temporary workforce (Fred Luthans & Youssef, 2004). Tacit knowledge, on the other hand, is built over time through socialization into the organization. Explicit knowledge includes skills, abilities, and competencies derived from education and experience.

Luthans argued that employees possess two types of knowledge: explicit and tacit knowledge. He argued that human resources can serve as a competitive advantage as they are more inimitable by competitors than physical, structural and financial resources. Pioneer Fred Luthans suggested that growth in organizations needs to focus on psychological rather than educational development. The concept of Psychological Capital (Psењњap) was originally designed for organizations. Investing in People вЂ“ A Source of Competitive Advantage Application of Psењњap in Leadership and Coaching.

Definition and Measurement of Psychological Capital (Psењњap).

Investing in People вЂ“ A Source of Competitive Advantage.

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