Untangling financial stress and workplace productivity: A serial mediation model

Abstract The primary purpose of this study is to propose and empirically test a serial mediation model encompassing financial literacy, financial behavior, financial stress, and workplace productivity. Using a multi-stage sampling technique, a large-scale nationwide survey was conducted to collect data from employees in Malaysia, yielding 2,246 usable responses that were analyzed using partial least squares structural equation modeling (PLS-SEM). The study found that (1) financial literacy positively influenced financial behavior, (2) financial behavior negatively influenced financial stress, (3) financial stress negatively influenced workplace behavior. Notably, the study evidenced the serial mediation link of financial literacy-financial behavior-financial stress-workplace productivity. The main contribution of this study stems from the development of an original theoretical serial mediation model that explains how employees’ financial literacy can undermine workplace productivity.