ISSN: 2222-6990
Open access
Employee productivity remains a strategic concern within Malaysia’s Electrical and Electronic (E&E) manufacturing industry, a sector contributing significantly to national GDP and export earnings. Drawing upon the Job Demands–Resources (JD-R) model and Social Exchange Theory (SET), this study investigates the influence of work environment, work stress, and training and development on employee productivity, with employee engagement acting as a mediating variable. Using a quantitative cross-sectional design, data were collected from 312 employees across E&E manufacturing firms in Peninsular Malaysia. Structural Equation Modelling using Partial Least Squares (PLS-SEM) via SmartPLS 4 was employed to test the hypotheses. Measurement model assessment confirmed reliability and validity (CR > 0.7; AVE > 0.5; HTMT < 0.90). Structural model results indicate that training and development and work stress significantly influence employee engagement and productivity, whereas work environment does not show a significant direct effect. Employee engagement significantly mediates the relationships between training and development, work stress, and employee productivity. The findings extend JD-R and SET frameworks within a Southeast Asian manufacturing context and provide practical insights for human resource practitioners and policymakers aiming to enhance engagement-driven productivity.
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