Despite the importance of employee Psychological Capital (self-efficacy, hope, optimism, resilience) as an organizational construct, previous studies on its antecedents have been sparse, suffered from a lack of generalizability, or failed to investigate unique ‘person x situation’ framework interactions. A total of 1406 employees from two large multinational corporations participated in this study. A ‘person x situation’ framework was tested. Findings reveal that (1) an employee’s personality, namely ‘extraversion’ increases his or her Psychological Capital levels, (2) the presence of a Transformational Leader in the employee’s work environment greatly enhanced the employee’s Psychological Capital, and unique to our study (3) under the stewardship of a Transformational Leader, only extraverts (but not introverts) displayed higher sensitivity and susceptibility to the positivity of the leader, thus exerting an additive interaction effect that greatly enhanced Psychological Capital levels. Our work extends Gray’s (1987) theory of ‘reward sensitivity’ and other positive mood-induction studies that were initially conducted within controlled laboratory settings (Larsen & Ketelaar, 1989, 1991; Stafford, Ng, Moore, & Bard, 2010; Zubair, & Kamal (2015). Practical implications suggest that leaders need use different approaches when dealing with followers who are extraverts (as opposed to introverts), as introverts are less susceptible and less responsive to transformational leaders

Keywords: Extraversion, transformational leadership, psychological capital