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The Impact of Psychological Capital and Mediation Role of Extrinsic Motivation on Employee Productivity on Manufacturing SMES in Malaysia

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Ayu Andirah Sakka, Harcharanjit Singh, Ekene Iwuchukwu, Isha Kampoowale, Hanan Ahmed Abdullah Albalushi

Pages 1748-1766 Received: 25 May, 2024 Revised: 27 Jun, 2024 Published Online: 28 Jul, 2024

http://dx.doi.org/10.46886/IJARBSS/v14-i7/11003
The research investigates the impact of psychological capital and extrinsic motivation on employee productivity in Malaysia's SME manufacturing industry. Based on a cross-sectional research design, quantitative and descriptive approaches were used. Moreover, a self-administered questionnaire was utilized to collect data from 299 Malaysian managers of manufacturing SMEs. Social Cognitive Theory provides a conceptual framework as well as an explanation of how variables interact. Moreover, to satisfy the assumptions, preliminary investigations were conducted, allowing us to investigate the data using SPSS Version 26 and Smart PLS Version 3. Present research found a significant and favourable association between psychological capital and employee productivity has been revealed in recent studies. Furthermore, this study discovered that extrinsic motivation mediate the association between psychological capital and employee productivity.
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