Template-Type: ReDIF-Article 1.0 Author-Name: Fariha Azzahra Author-Workplace-Name: Department of Management, Faculty Of Education and Applied Business, Universitas An Nuur, Grobogan, Indonesia Author-Name: Nurul Fitriyani Author-Workplace-Name: Department of Management, Faculty Of Education and Applied Business, Universitas An Nuur, Grobogan, Indonesia Author-Name: Indah Rahayu Author-Workplace-Name: Department of Management, Faculty Of Education and Applied Business, Universitas An Nuur, Grobogan, Indonesia Title: Pressure Becomes Power: The Mediating Effect of Eustress on the Self-Efficacy to Performance Abstract: Purpose: The present study examines the mediating role of eustress in the association between self-efficacy and employee performance to provide better input on involvement of psychological resources and positive stress to employee performance at work setting. Method: Census sampling, a quantitative method using SEM for data analysis via SmartPLS to assess direct and indirect relationships among variable. Findings: The results demonstrate that self-efficacy positively significantly influence employee performance and self-efficacy has a significant effect on eustress. In turn, eustress has a favorable effect on performance and mediates the link between self-efficacy and performance. Highly self-efficacious persons can rather convert job stress into active distress to elevate motivation, adjustment, and efficacy. Novelty: The aim of the paper is to introduce the concept of eustress to the self-efficacy performance stream of research and to provide empirical evidence that would suggest eustress mediates the link between self-efficacy and optimal performance, thus also serves as a psychological conduit that converts perceptions of human capability to actual performance. Implications: The results highlight the need for a supportive and demanding workplace and providing self-efficacy training. These departmental strategies would enhance sustained high performance of an organization and balance employee well-being. Keywords: Self-Efficacy, Eustress, Employee Performance Journal: Journal Economic Business Innovation Year: 2025 Volume: 2 Issue: 1 Pages: 97-109 DOI: 10.69725/jebi.v2i1.242 File-URL: https://analysisdata.co.id/index.php/JEBI/article/download/242/263 File-Format: application/pdf File-URL: https://analysisdata.co.id/index.php/JEBI/article/view/242 File-Format: text/html Handle: RePEc:ebi:journl:v:2:y:2025:i:1:p:97-109