Shaping Employee Performance: Investigating Psychological Capital (PsyCap) and Motivation within a State-Owned Enterprise

Abstract

Abstract

Suboptimal employee performance remains a critical challenge that hinders state-owned enterprises from achieving their strategic institutional targets. To address this issue, this study investigates how psychological capital (PsyCap) and work motivation influence employee performance within the public sector. The research team utilizes a quantitative descriptive-verificative research design, employing a survey approach to gather empirical data. Through a simple random sampling technique, the researchers collected primary data from employees working at a prominent state-owned enterprise (BUMN) in Bandung. The statistical analysis relies on structural equation modeling to analyze the direct and simultaneous relationships between the variables. The empirical results demonstrate that both psychological capital and motivation significantly and positively drive employee performance. The novelty of this study lies in its specific integration of positive psychological resources (PsyCap) alongside intrinsic motivation within a highly structured, bureaucratic Indonesian state-owned enterprise undergoing modern organizational transformation. Practically, these findings imply that corporate executives and HR managers must strategically cultivate psychological resilience—specifically hope, efficacy, resilience, and optimism—while designing robust motivational programs to optimize workforce productivity and secure long-term institutional success.