Gen Z’s PsyCap and Work Performance: Testing a higher-order constructs model in Smart PLS 4.0

Abstract

High-performing employees enable organizations to deliver excellent services, foster innovation, and sustain competitiveness in a dynamic global market. The study investigates the influence of psychological capital (PsyCap) on Gen Z's work performance in the Malaysian banking industry. The data was analyzed by employing higher-order constructs (HOC) measurement and structural assessment using SmartPLS 4.0. The research, involving 181 Gen Z employees, found that PsyCap significantly influenced work performance. The finding suggested that the banking sector should foster a favorable psychological atmosphere to attract top talent and invest in PsyCap development programs to enhance productivity.