FLEXIBLE WORK ARRANGEMENTS IN COVID-19 PANDEMIC ERA, INFLUENCE EMPLOYEE PERFORMANCE: THE MEDIATING ROLE OF INNOVATIVE WORK BEHAVIOR

Purpose of the study: The purpose of this study is to provide in-depth analysis to formulate appropriate work regulation policies and stimulate innovative work behavior in order to maintain company performance amid the COVID-19 pandemic. Therefore this encourages the identification of the effect of flexible work arrangements on employee performance through innovative work behavior on banking sector employees in the East Java region, Indonesia. Methodology: This study has used a quantitative research approach. Data analysis has been done by Structural Equation Model (SEM) method by Partial Least Square (PLS) supported by program computer software smart-PLS 3.0, and SPSS 23.0, in order to analyze the respondents’ characteristics, with sample size, which is 70 respondents working in the banking sector in the East Java region, Indonesia. Main Findings: We find that employee perceptions about their flexible work arrangements do not significantly influence employee performance, flexible work arrangements are positively related to innovative work behavior, innovative work behavior is positively related to employee performance and this relationship is mediated by innovative work behavior. Applications of this study: Banking management in the East Java region needs to consider innovation-related work behavior amid the COVID-19 pandemic, which is the use of non-cash payment methods by scanning the retinal eye. This study shows that in the absence of physical contact with the practice of using this machine, it can be a concrete COVID-19 era preventive solution to be applied to the wider community. Novelty/Originality of this study: The relationship between flexible work arrangements and employee's performance has been well researched. However, there has been no study on the impact of flexible work arrangements on employee performance mediated innovative work behavior and how employee innovativeness leads to better employee performance on the pandemic COVID-19 era