Harnessing psychological capital for technological capability development: An entrepreneurial response to crises

Crises compel entrepreneurs to adopt diverse coping strategies, ranging from immediate survival mechanisms to long-term approaches aimed at maintaining competitiveness. Among these, the development of technological capabilities represents a forward-looking, proactive coping strategy. While this approach involves significant resource investment and risk during times of uncertainty, it can potentially enhance competitiveness once normalcy is restored. Despite its association with successful business outcomes during crises, not all entrepreneurs pursue this path. This study seeks to uncover the factors driving the adoption of proactive, long-term coping mechanisms, particularly in the realm of technological capability development, during crises. Building on the proactive, anticipatory coping model (Schwarzer & Taubert, 2002), this research highlights the pivotal role of psychological capital as catalyst in fostering technological advances, challenging the existing dominance of external determinants in research. Drawing from the responses of 446 Canadian entrepreneurs during the COVID-19 pandemic, we found that psychological capital promotes technological capability development indirectly by alleviating crisis-induced strain and enhancing external support-seeking. Through a mixed-methods approach, enhanced by large language models, the interviews expose the dual impact of mixed emotions—strain coupled with feelings of pride and gratitude—on proactive, long-term coping. These findings extend the conceptualization of coping during crises and underscore the importance of integrating psychological constructs into studies on technological advancement.