The Role of Self-Efficacy in Bridging the Influence of Financial Literacy and Competency Development on Students' Work Readiness

Fajar Budiyanto; Trijadi Herdajanto

doi:10.55681/economina.v5i6.2917

Authors

Fajar Budiyanto Universitas Mayjen Sungkono, Indonesia
Trijadi Herdajanto Universitas Mayjen Sungkono, Indonesia

DOI:

https://doi.org/10.55681/economina.v5i6.2917

Keywords:

Financial Literacy, Self-Competency Development, Self-Efficacy, Work Readiness, Students

Abstract

This study aims to examine the effect of financial literacy and self-competency development on students’ work readiness through self-efficacy as a mediating variable. The research employed a quantitative approach with an explanatory research design. The population consisted of students from the Faculty of Economics at Universitas Mayjen Sungkono, with a sample of 157 respondents selected using probability sampling through a simple random sampling method. Data were collected using a Likert-scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0 software. The findings reveal that financial literacy and self-competency development have a positive and significant effect on students’ work readiness. Furthermore, financial literacy and self-competency development were found to positively influence self-efficacy. Self-efficacy also has a positive effect on work readiness and serves as a mediator in the relationship between financial literacy, self-competency development, and students’ work readiness. These findings indicate that students’ work readiness is not only determined by knowledge and competency factors but also by individuals’ confidence in their ability to face workplace demands. This study supports Social Cognitive Theory by demonstrating that cognitive factors, learning experiences, and personal factors interact in shaping students’ work readiness.

Downloads

Download data is not yet available.

References

Ahmid, S. S., Tiew, C. C., & Abdullah, M. N. L. Y. (2023a). The Influence of Innovative Characteristics, Work Readiness, and Vocational Self-Concept on Employability of Vocational College Students. International Journal for Research in Vocational Education and Training, 10(3), 288–317. https://doi.org/10.13152/IJRVET.10.3.1

Ahmid, S. S., Tiew, C. C., & Abdullah, M. N. L. Y. (2023b). The Influence of Innovative Characteristics, Work Readiness, and Vocational Self-Concept on Employability of Vocational College Students. International Journal for Research in Vocational Education and Training, 10(3), 288–317. https://doi.org/10.13152/IJRVET.10.3.1

Bandura, Albert. (1986). Social foundations of thought and action : a social cognitive theory. Prentice-Hall.

Gunawan, W., Glendon, A. I., & Creed, P. A. (2025). Young adults perceived future employability: testing a social cognitive career model. International Journal for Educational and Vocational Guidance, 25(3), 1287–1304. https://doi.org/10.1007/s10775-024-09666-7

Hair, J. F., Hultt, T. M., Ringle, C. M., & Sarsted, M. (2022). Classroom Companion: Business Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R AAWorkbook. http://www.

Husna, F. H., Susilawati, I. R., Shafira, I. S., Wilujeng, R. A., Yohana, T., & Kumalasari, L. (2025). From College to Career: Career Readiness as a Driver of Work Readiness in Final-Year Students. ANFUSINA: Journal of Psychology, 8(1), 75. https://doi.org/10.24042/ajp.v8i1.26188

Kartawinata, B. R., Fakhri, M., Pradana, M., Hanifan, N. F., & Akbar, A. (2021). The Role Of Financial Self-Efficacy: Mediating Effects Of Financial Literacy & Financial Inclusion Of Students In West Java, Indonesia. In Journal of Management Information and Decision Sciences (Vol. 24, Number 2).

Kicova, E., Michulek, J., Ponisciakova, O., & Fabus, J. (2025). When Financial Awareness Meets Reality: Financial Literacy and Gen Z’s Entrepreneurship Interest. International Journal of Financial Studies, 13(3), 171. https://doi.org/10.3390/ijfs13030171

Klapper, L., & Lusardi, A. (2020). Financial literacy and financial resilience: Evidence from around the world. Financial Management, 49(3), 589–614. https://doi.org/10.1111/fima.12283

Lone, U. M., & Bhat, S. A. (2024). Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy. Journal of Financial Services Marketing, 29(1), 122–137. https://doi.org/10.1057/s41264-022-00183-8

Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5

Orr, P., Forsyth, L., Caballero, C., Rosenberg, C., & Walker, A. (2023). A systematic review of Australian higher education students’ and graduates’ work readiness. Higher Education Research & Development, 42(7), 1714–1731. https://doi.org/10.1080/07294360.2023.2192465

Otejiri Oliogu, E., Emeka Arinze, S., Ernest Agbogun, O., Bernard Alajekwu, U., & N. Ezeabasili, V. (2026). Financial Literacy, Entrepreneurial Orientation, and Students’ Career Readiness in Dennis Osadebay University. International Journal of Emerging Research in Engineering, Science, and Management, 5(1), 69–76. https://doi.org/10.58482/ijeresm.v5i1.5

Prikshat, V., Kumar, S., & Nankervis, A. (2019). Work-readiness integrated competence model. Education + Training, 61(5), 568–589. https://doi.org/10.1108/ET-05-2018-0114

Sa’adun, N. F., Mahmud, M. I., & Mansor, A. Z. (2025). Exploring the Impact of Career Self-Efficacy and Parental Influence on Employability Skills in Diploma Students: A Systematic Literature Review. International Journal of Academic Research in Business and Social Sciences, 15(8). https://doi.org/10.6007/IJARBSS/v15-i8/26332

Salisu, I., Alshammari, M. M., & Al-Samhi, N. M. (2026). Psychological pathways to perceived employability: a dual-theoretical lens on the mediating roles of self-efficacy and resilience in career development programs. Frontiers in Education, 10. https://doi.org/10.3389/feduc.2025.1723538

Sekaran, Uma., & Bougie, Roger. (2016). Research methods for business : a skill-building approach. John Wiley & Sons.

Tan, J., Li, J., & Yi, X. (2025). How Can General Self-Efficacy Facilitate Undergraduates’ Employability? A Multiple Mediation Model. Behavioral Sciences, 15(4), 514. https://doi.org/10.3390/bs15040514

Xiao, J. J., & Porto, N. (2017). Financial education and financial satisfaction. International Journal of Bank Marketing, 35(5), 805–817. https://doi.org/10.1108/IJBM-01-2016-0009