1 Abstract Positive psychological capital (PPC) provides a framework that enables scholars to extend current research into positive organisational behaviour (POB). The construct, which comprises self-efficacy, hope, optimism, and resiliency, was introduced by Luthans, Luthans, and Luthans (2004) as a measure comparable and complimentary to measures of human (or intellectual), social and traditional physical capital. This paper explores the rationale behind positive psychological capital, reviewing the model with a specific focus on the clarifying the distinctive value of component constructs, and further, on clarifying the criteria by which additional states might be assessed for inclusion in the theory; trust is briefly assessed under these criteria as a potential addition to the model. To conclude, an agenda for future research is outlined. This paper is a work in progress. Material in the paper cannot be used without permission of the author. DEPARTMENT OF MANAGEMENT WORKING PAPER SERIES I S S N 1 3 2 7 – 5 2 1 6 POSITIVE PSYCHOLOGICAL CAPITAL: A PRELIMINARY EXPLORATION OF THE CONSTRUCT Liam F. Page & Ross Donohue Working Paper 51/04 October 2004