Consequence of psychological distress on performance achievement: A social exchange theory perspective

MZ Anwar, W Widodo, J Suprihanto - Intangible Capital, 2023 - upcommons.upc.edu
Intangible Capital, 2023upcommons.upc.edu
Purpose: This study aimed to examine and analyze the consequences of psychological
distress on performance achievement of managers and employees in Islamic micro-finance
institutions in Indonesia. Design/methodology/approach: A survey was conducted in this
study, involving 194 managers and employees in Islamic microfinance institutions in
Indonesia. Findings: This study confirmed that the aspects of formal justice and social justice
had a significant effect on psychological distress and performance achievement. Another …
Purpose
This study aimed to examine and analyze the consequences of psychological distress on performance achievement of managers and employees in Islamic micro-finance institutions in Indonesia.
Design/methodology/approach
A survey was conducted in this study, involving 194 managers and employees in Islamic microfinance institutions in Indonesia.
Findings
This study confirmed that the aspects of formal justice and social justice had a significant effect on psychological distress and performance achievement. Another finding showed that psychological distress had a significant effect on performance achievement and served as a mediating variable for the effect of social justice on performance achievement.
Research limitations/implications
This study only focused on the effect of psychological distress on the performance achievement of human resources in the context of Islamic microfinance institutions. Besides, in explaining the model, this study only focused on one point of view of the grand theory, i.e., social exchange theory.
Originality/value
This study provided information on alternative strategies in managing and minimizing the risks of psychological distress to improve performance achievement in Islamic microfinance institutions
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