<![CDATA[This study aims to analyze the effect of physical and non-physical work environments on employee performance through work stress as a mediating variable. This research employed a quantitative approach using saturated sampling, involving 76 employees from the Marketing, Human Resource Management (HRM), and Finance divisions. Data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The findings indicate that physical and non-physical work environments have a positive and significant effect on employee performance. In addition, physical and non-physical work environments have a negative and significant effect on work stress, indicating that better work environments are associated with lower levels of work stress. Work stress has a negative and significant effect on employee performance, indicating that higher levels of work stress are associated with lower employee performance. Furthermore, work stress significantly mediates the effects of physical and non-physical work environments on employee performance. These findings support the Job Demands–Resources (JD-R) Model, which explains that adequate work resources and a supportive work environment can reduce work stress and improve employee performance. The study implies that organizations should improve both physical and non-physical work environments to reduce work stress and enhance employee performance. Theoretically, these findings contribute to the Job Demands–Resources (JD-R) Model by empirically demonstrating that physical and non-physical work environments function as job resources that can reduce work stress and subsequently support employee performance. Practically, the findings suggest that organizations should improve both physical and non-physical work environments to reduce work stress and enhance employee performance.]]>
