Authors - Mo Xiao, Chatchai Chatpunyakulr, Sarist Gulthawatvichai Abstract - This study investigates how psychological capital (PsyCap) influences nascent entrepreneurial behavior in China's dynamic economic environment, with a focus on passion mediation and environmental contingencies. Drawing on social cognitive theory and planned behavior frameworks, we propose an integrated model testing (1) PsyCap direct effects on passion and venture activity, (2) passion's mediating role, and (3) environmental dynamism's moderating effects. Using stratified sampling across three Chinese innovation hubs (N=387), we employ mixed methods combining SEM with fuzzy-set qualitative analysis. Findings reveal industry-specific boundary conditions where regulatory turbulence amplifies PsyCap impact in tech sectors but attenuates effects in policy-sensitive domains. The study contributes a cognition-anchored PsyCap measurement model while informing adaptive training protocols for nascent entrepreneurs facing institutional voids. Future research should examine cultural contingencies in emerging economies through longitudinal designs.
