Impact of ICT Usage on Employee Performance among Medium Manufacturing Enterprises (MMEs): Mediating Role of Employee Engagement and Knowledge Sharing

Abstract

Small and medium-sized businesses (SMEs) are an essential component of national economies worldwide since they are responsible for creating jobs, delivering services with added value, and advancing overall innovation. SMEs play an essential role in the generation of jobs in Malaysia, and the productivity of these enterprises is significantly correlated with employee performance. Literature on employee performance in SMEs still needs to be improved, despite the fact that these businesses significantly contribute to the country's GDP. This study investigates how ICT usage affects employee performance within Malaysian SMEs. In order to determine how the use of ICT usage influences employee performance in SMEs, the authors turned to the social exchange theory. This study presents a cross-sectional survey analyzed using SmartPLS 3.3.9 for multivariate statistical analysis. An integrated research framework was developed by bringing together significant aspects from existing literature. 301 employees of selected SMEs completed the survey. The findings of the study indicate that ICT usage affects employee performance. The study was done in SMEs, and the analysis is based on cross-sectional data that cannot be generalized to a broader range of industries. The study's outcomes will aid stakeholders, lawmakers, and SME management in lobbying for effective and well-articulated ICT usage strategies to enhance employee engagement, knowledge exchange, and performance. This study contributes to the literature by giving empirical evidence that ICT usage influences employee performance in Malaysian SMEs.

The Impact of Incentives on Employee Productivity: Review of Past Literatures

“…Rewards may serve as a motivational factor that increases job satisfaction and, consequently, productivity. Other studies have examined the mediating effects of factors such as motivation, engagement, and information sharing on the relationship between incentives and productivity (Frengki et al, 2017;Sannagy et al, 2023). They claimed that it was possible to use incentives to persuade staff members to increase productivity or achieve high performance.…”