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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Impact of Psychological Capital and Mediation Role of Intrinsic Motivation on Employee Productivity on Manufacturing SMEs in Malaysia

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

http://dx.doi.org/10.6007/IJARBSS/v14-i7/22009

Open access

Present research examined the impact of psychological capital and intrinsic motivation on employee productivity, in the Malaysia Small and Medium (SMEs) manufacturing sector. Present research aimed to address factors influencing employee productivity in Malaysia SMEs manufacturing. The decline in employee productivity could impact country GDP negatively. Present research examined the impact of psychological capital and intrinsic motivation on employee productivity, in the Malaysia Small and Medium (SMEs) manufacturing sector. Quantitative and descriptive techniques were adopted based on a cross-sectional research design. A self-administered questionnaire was used to collect data from 309 managers of manufacturing SMEs in Malaysia. Social Cognitive Theory provides a conceptual framework as well as an explanation of the relationship between variables. Preliminary studies were carried out to satisfy the assumptions, allowing us to examine the data using SPSS Version 26 and Smart PLS Version 3. Present research found a significant and positive relationship between psychological capital and employee productivity. In addition, this research also found Intrinsic motivation mediates the relationship between psychological capital and employee productivity. The research findings will provide valuable information for manager and policy makers in order to boost employee productivity in Malaysia SME manufacturing. The paper also discussed limitation of the research; some suggestion for future research.

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