International Journal of Applied Business and International Management
Vol 10, No 3 (2025): December 2025

Work Engagement, Psychological Capital, and Employee Performance: The Mediating Role of Employee Well-Being in the Banking Industry

Resty Ismawanti (Sangga Buana University)
Imas Komariyah (Sekolah of Economics (STIE) Miftahul Huda)
Yudi Wahyudin Suwandi (University of Equity Indonesia)



Article Info

Publish Date
23 May 2026

Abstract

The banking industry increasingly requires employees who can sustain performance amid digital transformation, service pressure, and stricter operational targets. This study examines the influence of work engagement and psychological capital on employee performance, with employee well-being as a mediating variable at PT Bank Tabungan Negara (Persero) Tbk. A quantitative explanatory design was applied using survey data from 64 employees selected through simple random sampling. Data were collected using a structured five-point Likert questionnaire and analyzed through validity and reliability tests, classical assumption tests, multiple linear regression, and Sobel mediation testing using SPSS. The results show that work engagement significantly affects employee well-being (b = 0.312, p = 0.001) and employee performance (b = 0.298, p = 0.001). Psychological capital also significantly affects employee well-being (b = 0.298, p = 0.002) and employee performance (b = 0.276, p = 0.002). Employee well-being significantly improves employee performance (b = 0.421, p 0.001) and partially mediates both relationships. These findings emphasize that employee performance can be strengthened by developing engagement, psychological capital, and workplace well-being as integrated human resource strategies.

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Journal Info

Abbrev

IJABIM

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences

Description

The International Journal of Applied Business and International Management (IJABIM) is a peer-reviewed journal that provides a platform for scholars, professionals, and policymakers to share pioneering research in international business, management, and economics. Published quarterly, the journal ...