The Influence of Remote Work Flexibility on Employee Productivity: The Mediating Role of Privacy Invasion in Small Medium Enterprises in Klang Valley, Malaysia.

This study examines the impact of remote work flexibility on employee productivity in small and medium-sized enterprises (SMEs) in Klang Valley, Malaysia, with privacy invasion as a mediating factor. Privacy invasion refers to the distorted boundaries of employer’s management of employees working processes and output, as well as the overstepping of employees work autonomy. This type of employee surveillance, coupled with technological advancements, has widened the scope, with employers increasingly reliant on these advancements to track and evaluate employee performance. This study seeks to determine whether there are any mediating effects of privacy invasion on the relationship between remote work flexibility and employees’ productivity. A quantitative design was adopted, surveying 384 SME employees in the IT sector using structured questionnaires. Non-probability sampling using Quota sampling was adopted to provide adequate representation of employees across various job levels, including assistant, executive, lead, and manager. Descriptive statistics and inferential statistics were conducted to test the reliability of the instrument and the hypothesis. The study can benefit SMEs in terms of the opportunity for remote work flexibility. Since there are an increasing number of organizations heading towards providing the option of remote work flexibility, having an understanding of how it impacts productivity can assist SMEs in producing remote work policies that are win-win for both employers and employees. Findings reveal that time flexibility and workload flexibility have significant positive effects on productivity, whereas location flexibility shows no significant direct impact. Privacy invasion is found to neither influence productivity nor mediate the relationship between the flexibility dimensions and productivity. The results underscore the need for SME leaders to adopt balanced remote work policies that promote autonomy while safeguarding employee privacy through transparent and ethical monitoring practices.

Remote Work Flexibility, Employee Productivity, Privacy Invasion

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