LAUSR

The increasing uncertainty of our world raises important questions for university students on how they should respond to the employment challenges caused by changing environments. One of the central topics is the development of graduate employability. However, most previous research on graduate employability was undertaken in a stable environment, limiting our understanding of how graduate employability develops in a dynamic context. We have advanced the literature by introducing action theory to investigate the process of personal initiative affecting graduate employability in a period of environmental uncertainty. Using a time-lagged research design, we collected data from a sample of 229 Chinese university students and tested the hypothesized relationships. We find that personal initiative positively affects graduate employability through human and psychological capital. We further show that environmental uncertainty plays a contingent role in the above processes. Specifically, when a high level of environmental uncertainty is perceived, the positive indirect effect of personal initiative on graduate employability through either human capital or psychological capital is more likely to be strengthened. The theoretical and practical implications of these findings are also discussed.