The Effect of Work Stress and Work Environment on Job Performance in Manufacturing Industry: A PLS-SEM Approach

Employee performance is a critical determinant of growth and success within manufacturing organizations, making it essential to understand the factors influencing it. This study delves into the effects of work stress and the work environment on job performance, specifically within the electronics manufacturing sector in Penang, Malaysia. The research addresses how role ambiguity and conflict can act as stressors and also explores how intrinsic and extrinsic motivation factors related to the work environment affect job performance. The study sample comprised 116 participants from five electronics manufacturing firms located in Bayan Lepas, Penang. Data collection was conducted through a structured questionnaire, and the analysis was performed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results confirmed that the measurement model was robust, providing a solid foundation for validating the structural model. The PLS-SEM analysis demonstrated that the model had significant predictive capability, revealing that both work stress and the work environment exert substantial effects on job performance within the electronics manufacturing industry in Penang. Specifically, role stressors such as ambiguity and conflict were found to negatively impact job performance, while a supportive and motivating work environment positively influenced it. The study's results align with the theoretical frameworks of role stressors and self-determination, suggesting that effective management of stressors and the cultivation of a motivating work environment are essential for optimizing employee performance in the manufacturing sector.