Although many theoretical explanations have been offered to explain escalation of commitment, there is still a literature gap that individual variables as the determinants of the escalation indicate inconsistent findings. On the other hand, there is an opportunity to explore the role of a new individual variable, namely the Psychological Capital (PsyCap) which is a second-order construct of self-efficacy, hope, optimism, and resilience. This study aimed to analyze how the four variables, both as an individual variable and a second-order construct, predicted the escalation of commitment. As many as 297 business students had completed the questionnaire given. The results showed that self-efficacy, optimism, and resilience have a significant positive correlation towards the escalation of commitment. Furthermore, PsyCap as a second-order construct was capable of better predicting the escalation of commitment than each of the constituent variables. The implications of these findings are, that PsyCap is not always associated with positive outcomes, thus it is crucial for companies to identify the type of personnel to be placed in a position often involved in decision-making.