Abstract
The study investigates the influence of Psychological Capital (PsyCap) and Workplace Diversity (WD) on Employee Performance (EP) in Namibian State-Owned Enterprises (SOEs), exploring both direct effects and the mediating role of WD. Utilising a post-positivist philosophy, quantitative approach and explanatory research design, data were collected through google forms administered to 350 employees across various Namibian SOEs via stratified convenience sampling. The relationships between PsyCap, WD, and EP were analysed using SmartPLS-SEM, including mediation analysis. Grounded in Social Cognitive Theory (SCT), the research revealed that PsyCap, comprising self-efficacy, optimism, hope and resilience, significantly enhances EP, with workplace diversity further amplifying this effect. The findings underscore the importance of fostering both psychological resources and inclusive work environments to optimise performance outcomes. Theoretical contributions include extending SCT by highlighting the interplay between personal and environmental factors in shaping EP. Practically, the study suggests that integrating PsyCap development with diversity initiatives can yield synergistic effects leading to a resilient and high performing workforce. However, limitations such as the study’s explanatory design, reliance on self-reported data, and focus on Namibian SOEs suggest the need for future research employing longitudinal methods, objective performance metrics, and broader organisational contexts. These insights offer valuable guidance for managers and policymakers aiming to enhance employee performance and promote sustainable growth within SOEs.