Unveiling Women’s Economic Empowerment: The Role of Self-Determination Theory, Psychological Capital, and Cultural Barriers

Abstract

Thus, the purpose of this study is to evaluate the influence of the different dimensions of Self-Determination Theory (SDT) on the economic empowerment of working women in Pakistan. It explores how psychological needs, operationalized by locus of control and moderated by cultural discrimination, affect women’s economic empowerment. This study follows a quantitative research design and used cross-sectional data to test the hypothesized model. Using a non-probability snowball sampling technique, this study analyzed the data gathered from 317 working women from Pakistan through a self-administered questionnaire based on a 7-point Likert scale. The analysis was performed on Smart PLS using Partial Least Squares Structural Equation Modelling (PLS-SEM) to test the proposed model. The study’s findings indicate that psychological need and the positive psychological capital play a significant role in determining women's empowerment in the economic domain. This study establishes that locus of control mediates these relationships, and cultural discrimination as a moderator reduces the positive influence of psychological needs/psychological capital on women’s economic empowerment.This research offers more significant insights about women’s economic empowerment through the lens of self-determination theory and with diverse cultural perspectives. It brings together psychological and cultural approaches to explore what empowers people economically and provides new perspectives on this process.

Keywords: Self-Determination Theory, Economic Empowerment, Working Women, Pakistan, Locus of Control, Cultural Discrimination, Psychological Needs.