IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiy2018ispecial3p503-518.html
   My bibliography  Save this article

Financial Literacy and Work Engagement as Mediating Variable to Bank Agent's Performance

Author

Listed:
  • Shelfi Malinda
  • Dian Masyita
  • Sulaeman Rahman
  • Mokhamad Anwar

Abstract

This study aims to analyze the direct effects of financial literacy and work engagement on agent’s performance in the implementation of branchless banking strategy. It also aims to analyze the indirect effect of financial literacy on agent's performance if work engagement becomes a mediating variable. This research model is exploratory research with a survey method and purposive sampling technique. The data obtained from primary data sources using questionnaires to 85 active agents in Palembang, Indonesia. It was analyzed by using path analysis through Structured Equation Modeling-Partial Least Square (SEM-PLS) technique. The result shows that the level of financial literacy and work engagement positively affect agent's performance directly, but financial literacy has negative effect on work engagement and on agent's performance indirectly. It shows that without the feeling of being engaged to the bank, it will weaken the influence of agent's financial literacy on agent’s performance. Therefore, it is advisable for banks to keep and maintain the agent's work engagement, which in turn will affect the performance of agents.

Suggested Citation

  • Shelfi Malinda & Dian Masyita & Sulaeman Rahman & Mokhamad Anwar, 2018. "Financial Literacy and Work Engagement as Mediating Variable to Bank Agent's Performance," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 503-518.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:special3:p:503-518
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/journal/1403/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Josiah Aduda & Patrick Kiragu & Jackline Murugi Ndwiga, 2013. "The Relationship between Agency Banking and Financial Performance of Commercial Banks in Kenya," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 2(4), pages 1-6.
    2. Lusardi, Annamaria & Mitchell, Olivia S., 2011. "Financial literacy around the world: an overview," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(4), pages 497-508, October.
    3. Wilmar Schaufeli & Marisa Salanova & Vicente González-romá & Arnold Bakker, 2002. "The Measurement of Engagement and Burnout: A Two Sample Confirmatory Factor Analytic Approach," Journal of Happiness Studies, Springer, vol. 3(1), pages 71-92, March.
    4. Anitha J., 2014. "Determinants of employee engagement and their impact on employee performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 63(3), pages 308-323, April.
    5. Justine S. Hastings & Brigitte C. Madrian & William L. Skimmyhorn, 2013. "Financial Literacy, Financial Education, and Economic Outcomes," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 347-373, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yaakov Itach, 2019. "Financial Literacy Level Of High School Students And Its Economic Patterns Reflections," Almanac of PhD Students, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, vol. 15(15 Year 2), pages 518-537.
    2. Dr. Khan Sarfaraz Ali & Professor Dr. Mezbah-Ul-Islam & Tamanna Nowrin Azam & Lt. Cdr. (Retd.) Wares-Ul-Matin, 2021. "Influence of Job Engagement on Transformational Leadership Style and Organizational Performance," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 3(1), pages 14-21, june.
    3. Luigi Guiso & Eliana Viviano, 2015. "How Much Can Financial Literacy Help?," Review of Finance, European Finance Association, vol. 19(4), pages 1347-1382.
    4. Francisco Gomes & Michael Haliassos & Tarun Ramadorai, 2021. "Household Finance," Journal of Economic Literature, American Economic Association, vol. 59(3), pages 919-1000, September.
    5. Firth, Chris, 2020. "Protecting investors from themselves: Evidence from a regulatory intervention," Journal of Behavioral and Experimental Finance, Elsevier, vol. 27(C).
    6. Oscar A. Stolper & Andreas Walter, 2017. "Financial literacy, financial advice, and financial behavior," Journal of Business Economics, Springer, vol. 87(5), pages 581-643, July.
    7. Sundar, B. & Virmani, Vineet, 2013. "Numeracy and Financial Literacy of Forest Dependent Communities Evidence from Andhra Pradesh," IIMA Working Papers WP2013-09-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Milo Bianchi, 2018. "Financial Literacy and Portfolio Dynamics," Journal of Finance, American Finance Association, vol. 73(2), pages 831-859, April.
    9. Paul Gerrans & Richard Heaney, 2019. "The impact of undergraduate personal finance education on individual financial literacy, attitudes and intentions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(1), pages 177-217, March.
    10. Elinder, Mikael & Hagen, Johannes & Nordin, Mattias & Säve-Söderbergh, Jenny, 2020. "Who lacks pension knowledge, why and does it matter?," Working Paper Series 2020:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    11. Andrej Cupak & Pirmin Fessler & Maria Silgoner & Elisabeth Ulbrich, 2018. "Financial literacy gaps across countries: the role of individual characteristics and institutions," Working and Discussion Papers WP 2/2018, Research Department, National Bank of Slovakia.
    12. Marotta, Giuseppe, 2020. "Behind the success of dominated personal pension plans: sales force and financial literacy factors," Journal of Pension Economics and Finance, Cambridge University Press, vol. 19(4), pages 532-547, October.
    13. Andrej Cupák & Pirmin Fessler & Maria Silgoner & Elisabeth Ulbrich, 2021. "Exploring Differences in Financial Literacy Across Countries: The Role of Individual Characteristics and Institutions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 409-438, December.
    14. Anderson, Anders & Baker, Forest & Robinson, David T., 2017. "Precautionary savings, retirement planning and misperceptions of financial literacy," Journal of Financial Economics, Elsevier, vol. 126(2), pages 383-398.
    15. Motyka Błażej, 2018. "Employee engagement and performance: a systematic literature review," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 54(3), pages 227-244, September.
    16. Manuel Salas‐Velasco & Dolores Moreno‐Herrero & José Sánchez‐Campillo, 2021. "Teaching financial education in schools and students' financial literacy: A cross‐country analysis with PISA data," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4077-4103, July.
    17. Tabea Bucher-Koenen & Annamaria Lusardi & Rob Alessie & Maarten van Rooij, 2017. "How Financially Literate Are Women? An Overview and New Insights," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 255-283, July.
    18. Grimes, Paul W. & Lopus, Jane S. & Amidjono, Dwi Sulistyorini, 2022. "Financial life-skills training and labor market outcomes in Indonesia," International Review of Economics Education, Elsevier, vol. 41(C).
    19. Annamaria Lusardi, 2015. "Risk Literacy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 1(1), pages 5-23, March.
    20. Fang Zhao & Jie Sun & Raj Devasagayam & Gary Clendenen, 2018. "Effects of culture and financial literacy among Chinese-Americans on participating in financial services," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 23(1), pages 62-75, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxi:y:2018:i:special3:p:503-518. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.