Purpose: This study realizing the importance of psychological capital on employee's as well as individual components, this study addresses to investigate the mediating role of quality of work-life in the relationship between psychological capital and work engagement.

Methodology: The data collected from 356 employees of multinational companies in Indonesia, with technique cluster sampling.  There are three measuring instruments used in this study namely the Quality of Work Life Model by Walton, which consists of 35 items; Implicit Psychological Capital (IPCQ) 24 items by Harm and Luthan, and The Utrecht Work Engagement Scale (UWES) by Schaufeli and Bakker, which consists of 17 items. The analysis used mediation regression model no. 4 V3.0 PROCESS by Andrew F. Hayes.

Main Findings: The results of this study indicate the quality of work-life partially mediated the relationship between psychological capital and work engagement. Psychological capital has both direct and indirect impacts to work engagement and quality of work-life as mediators. The result found a positive relationship between psychological capital and work engagement, psychological capital, and quality of work-life, also work engagement and quality of work-life.

Applications: This study throws light on literature psychology, especially the industry and organization field. Also, as a torchlight in companies and employees to create and implement strategies and programs for the development of existing human resources. So that employees have the expected performance so that the goals of the company can achieve and employees feel involved in the company's development and generate feelings of confidence and sense of worth on his job. The results of this study also give some contributions to developing the existing body of knowledge, especially in positive psychology literature.

Novelty/Originality: The critical role of Quality of work-life as a mediator on the relationship between psychological capital and work engagement among employees in Developing Countries.


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