Measuring the effects of work motivation on stress and performance linkages in SME

Entrepreneurship is important for the economic growth and wealth of the nation. Entrepreneurs are responsible for not only generating income to themselves but also to others in terms of job creation. However, the issue of the entrepreneurs’ well-being is hardly being touched upon particularly in the context of stress, work motivation, and performance in enterprises of small and medium sizes in Malaysia. Work motivation as the mediator is the main contributions from the study. Therefore, the study aims to examine these relationships within this context. Stress, motivation, and performance were measured using A Shortened Stress Screening Tool (ASSET), Multidimensional Work Motivation Scale (MWMS), and Individual Work Performance (IWPQ), respectively. Questionnaires were distributed among the Majlis Amanah Rakyat (MARA) entrepreneurs located in Klang Valley and approximately 150 respondents responded. Data were analysed using the hierarchical multiple regression method. The results showed that certain stressors such as work relationship, work overload, job security, and resources and communication significantly affect motivation. Meanwhile, work motivation significantly predicts performance. Finally, stressors such as work relationships, work-life balance, job security, and pay and benefits significantly influence performance. Overall, work motivation partially mediated stress and performance relationship. Entrepreneurs should be aware of these significant stressors and conduct interventions so as to reduce their stresses and thus, improve their work motivation and performance.