The Effect of Work Stress And Work Environment On Employee Performance Through Work Motivation as a Mediation Variable in Village Credit Institutions (LPD) In East Denpasar District

Kadek Arista Bella (Universitas Warmadewa, Indonesia)
Ni Wayan Sitiari (Universitas Warmadewa, Indonesia)
I Ketut Darma (Universitas Warmadewa, Indonesia)
Ida Bagus Udayana Putra (Universitas Warmadewa, Indonesia)
Ni Luh Putu Indiani (Universitas Warmadewa, Indonesia)
Gusti Ayu Sugiati (Universitas Warmadewa, Indonesia)

Journal of Entrepreneurial and Business Diversity
Vol. 4 No. 4 (2026): Journal of Entrepreneurial and Business Diversity. (October – December)

Purpose:The study investigates the effects of work stress and the work environment on employee performance through work motivation in Village Credit Institutions (LPD) in East Denpasar. Methodology:The population comprised 123 employees across five LPDs. Respondents were selected using purposive sampling, questionnaires were used for data collection, and SEM-PLS was applied for analysis. Findings:Work stress had significant negative effects on performance and motivation. The work environment significantly improved motivation but had a positive, insignificant direct effect on performance. Motivation positively affected performance and significantly mediated both stress–performance and environment–performance relationships.Implication:Management should reduce workplace stress and strengthen environmental support and employee motivation.