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The effect of motivation on employee engagement in public sectors: in the case of North Wollo zone

• Abriham Ebabu Engidaw   ORCID: orcid.org/0000-0002-5081-5668 1  

Journal of Innovation and Entrepreneurship volume  10 , Article number:  43 ( 2021 ) Cite this article

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The purpose of this study was to examine the effect of intrinsic and extrinsic motivation on employee engagement in public sectors. To meet this purpose, a quantitative and qualitative study survey was conducted and the researcher used an explanatory survey research design. The study was used both primary and secondary sources of data. The target population for this study was selected four city administrative office employees including all kebeles office employees and as a sample size, 349 questionnaires were filled and collected from these employees. The study used proportionately stratified with simple random sampling because to collect the relevant data and to give equal chance for all employees. Later on, statistical package for social science (SPSS) was used to the required test of inferential statistics; including reliability analysis, bivariate correlation, analysis of variance (ANOVA) test, and multiple regression analysis. The finding of the study revealed that extrinsic motivation was considered more significant than intrinsic and there was a positive significant relationship between intrinsic and extrinsic motivations with employee engagement. From the results, it was also concluded that the relationship and effect of extrinsic motivation were stronger on employee engagement as compared to intrinsic motivation. As a recommendation, the organizations should find which ways are able to motivate employees, what drives them, then making sure they utilize appropriate motivational techniques with each employee. Managers should also endeavor to communicate the organization’s purpose to employees. Finally, the organizations should take steps to incorporate the vision of employees for the organization with its own vision.

Introduction

An unmotivated employee is likely to put little effort into work tasks, produce work of lower quality, avoid the workplace, and even exit his or her job if given the opportunity to do so. On the other hand, motivated employees are likely to willingly take on tasks, produce work of high quality, and be creative, persistent, and productive. Employees motivation has two forms, intrinsic and extrinsic. Intrinsic motivation arises from the intrinsic value of the work for the individual (for example, its interest value), whereas, extrinsic motivation arises from the desire to obtain some outcomes (for example, as rewards) that are apart from the work itself (Amabile, 1993 ). Each and every person in an organization is motivated in a different manner. Workers’ motivation depends on many intrinsic and extrinsic factors like interesting work, job appreciation, satisfaction, stress, job security, promotion and growth, rewards, work environment, punishment and recognition etcetera (Palaniammal, 2013 ).

The main purpose of these motivating factors is to create an environment where people are willing to work with zeal, initiative, interest, and enthusiasm, with a high personal and group satisfaction, with the sense of responsibility, loyalty, and confidence to achieve their personal as well as organizational goals (Palaniammal, 2013 ). Research has shown that there is a difference in strength between intrinsic and extrinsic motivation on their relationship and impact on employee engagement. Khan ( 2011 ) concluded that the relationship and impact of extrinsic motivation were stronger on employee engagement as compared to intrinsic motivation.

According to Shuck ( 2010 ) employee engagement is an individual employee’s cognitive, emotional, and behavioral state directed toward desired organizational outcomes. Recently, Rice ( 2012 ) defined engagement as full employee engagement represents an alignment of maximum satisfaction for the individual with a maximum contribution for the organization’s success. The focus of all definitions was on two things, employee satisfaction and contribution to organizational success.

According to different researchers’ study results, employee motivation can be used to engage employees in their work in the organization. Beyond motivation, to achieve success in today’s highly competitive environment many organizations have identified the need to engage their workforce. Habte ( 2016 ) concluded that managers perceive intrinsic motivation have a larger influence on the psychological aspects of employee engagement than extrinsic motivation. This supports the idea stated by Berl and Williamson ( 1987 ) but still contradict with the finding of Iqbal and Khan. When we see the above research findings: the study conducted by Khan ( 2013 ) is contradicted with the findings of Habte ( 2016 ), Thomas ( 2009 ) and Khan ( 2011 ).

This study was carried out in four selected city administration office employees in order to know and explain the effect of motivation on employee engagement. Basically, the researcher is initiated to conduct this study because based on his observation and preliminary investigation there is a problem of employees being motivated and engaged in public sectors and the other reasons are first there is the inconsistency of previous findings relating to this topic, second as the researcher’s knowledge there are few studies conducted directly related to this topic specifically in our country Ethiopia. So this study can try to fill these gaps. Based on the above research problems the researcher developed the following research questions:

Objectives of the study

General objective.

The main objective of this study was to identify the effect of motivation (intrinsic or extrinsic) on employee engagement in public sectors in the case of selected zones.

Specific objectives

To explain the effect of intrinsic motivation on employee engagement in selected city administration employees.

To describe the effect of extrinsic motivation on employee engagement in selected city administration office employees.

To identify which motivation factor (intrinsic or extrinsic) more significantly affects employee engagement in the organization.

To examine the effect of overall motivation on employee engagement.

Literature reviews

• Employee engagement

Employee engagement is defined as “harnessing of organizational members selves to their work roles; in engagement, people employ and express themselves physically, cognitively and emotionally during role performance”, In other words, “individual involvement and satisfaction as well as enthusiasm for work” Andrew ( 2012 ).

According to Kahn ( 1990 , 1992 , cited in Saks, 2006 ) job engagement means worker should be psychologically available during the performance of the organizational role.

The organization is totally dependent on their employees; therefore, they need to be engaged in their jobs. Engagement in the organization’s jobs enables employees to make operations successful, as it runs with the mutual commitment of organizations and employees. When organization employees will engage, they will use their potential to drive high performance (provide better services and attract maximum customers). Engage employees are more dedicated and helping to maximize the organization’s productivity. They are more likely to consider themselves as an employer. Therefore, organizations should pay attention to the employee engagement concept. Otherwise, it can be the biggest threat to the organization’s success. If the organization’s management is not interested in engaging employees, consequently it would lead to unsatisfactory beneficiaries and lose their customers (Andrew & Sofian, 2012 ).

From the theories and literature discussed above the researcher identified two broad motivation factors called intrinsic and extrinsic motivation and these motivation factors are also identified as an independent variable because they have an effect on the dependent variable, employee engagement, in one way or another.

• Intrinsic motivation

According to Berl and Williamson ( 1987 ) intrinsic motivation is defined as the doing of an activity for its inherent satisfactions rather than for some benefits. Intrinsic motivation can be defined as the motivation to perform an activity in order to experience the pleasure and satisfaction inherent in the activity. They also further stated intrinsic motivation focuses on factors inside the individual which are based on personal needs. Employees get intrinsic reward directly from the job they perform, job satisfaction, interesting work, job appreciation, or the sense they help a client, Intrinsic motivated workers employ in a job because of their own interest in it and enjoy the job due to search for new solutions for business challenges and are more likely to burn up energy to identify problems and find innovative solutions.

From the Khan ( 2013 ) findings, they concluded that managers perceive intrinsic motivation as generally having a larger influence on the psychological aspects of employee engagement. They found that extrinsic motivation is of importance to employee engagement, though to a lesser extent psychologically but rather as a part of the total package that is offered to the employee by the organization and the manager. Habte ( 2016 ) concluded that managers perceive intrinsic motivation have a larger influence on the psychological aspects of employee engagement than extrinsic motivation. This conclusion leads to the next research hypothesis development on this research:

Hypothesis 1

Intrinsic motivation has a positive significant effect on employee engagement.

• Extrinsic motivation

Extrinsic motivation is defined as a construct that pertains whenever an activity is done in order to attain some separable outcome and refers to doing an activity simply for the enjoyment of the activity itself, rather than its instrumental value (Deci & Ryan, 2008 ). Or it can be the rewards offered to employees as an encouragement to engage in a behavior/task in which they cannot employ or “an employee is inner-directed, is interested or fascinated with a task and engages in it for the sake of task itself” (Zhang, 2010 ). When organizations wanted to fulfill a task from employees, they deal with monetary rewards and other tangible benefits. It referred to extrinsic rewards in motivational language. Management should know what motivates their workers and manipulate motivational techniques based on employees ’s desires. This would help organizations to recognize, educate and retain creative and productive employees for their engagement. For organizations to be better products and to have efficient performance, both extrinsic and intrinsic reward systems should be introduced. The purpose of explaining motivation (extrinsic, intrinsic) is to identify which motivation affects and has a relation with job engagement. Employees consider both important factors for their job motivation but some employees consider it more in line with extrinsic than intrinsic and vice versa (Zhang, 2010 ).

The study of Khan ( 2013 ) also concluded that the relationship and impact of extrinsic motivation were stronger on employee engagement as compared to intrinsic motivation. Thomas ( 2009 ) saying about intrinsic motivation at work stated that intrinsic rewards become more important and more prevalent in the workplace today. The above review leads to the following research hypothesis:

Hypothesis 2

There is a positive significant effect relationship between extrinsic motivation and employee engagement.

Overall motivation and employee engagement

Khan ( 2013 ) conducted research on the relationship between work motivation (intrinsic and extrinsic) and employee engagement on Allied Bank of Pakistan. The finding of the study revealed that there is a positive relationship between intrinsic motivation and employee engagement, and extrinsic motivation and employee engagement. Four intrinsic factors namely interesting work, job appreciation, satisfaction, and stress, and four extrinsic factors namely job security, good wages, promotion and growth, and recognition were identified as important factors for engagement. The study concluded that there is a positive relationship between intrinsic motivation and employee engagement, and extrinsic motivation and employee engagement. Furthermore, it is also concluded both intrinsic and extrinsic motivation has a strong positive impact on employee engagement.

Aworemi ( 2011 ) conducted research on the motivational factors of employees and their influence on employee engagement Nigeria and Marginson ( 1991 ) conducted research on academic salaries: will award restructuring make a difference in employees’ engagement? And many researchers raised many issues and get different findings of motivational factors for employee engagement. By considering these reviews the researcher developed the next hypothesis:

Hypothesis 3

There is a positive significant effect relationship between overall motivation and employee engagement.

Empirical literature review

Khan and Iqbal ( 2013 ) study concluded that there is positive relationship between intrinsic motivation and employee engagement, and extrinsic motivation and employee engagement. Furthermore, it is also concluded both intrinsic and extrinsic motivation has strong positive impact on employee engagement. The study also concluded that the relationship and impact of extrinsic motivation was stronger on employee engagement as compared to intrinsic motivation.

Bergstrom and García ( 2016 ) studied the influence of intrinsic and extrinsic motivation on employee engagement in private and public organizations. However the study focused on the perceptions of managers “not employees”. From the findings study they concluded that managers perceive intrinsic motivation as generally having a larger influence on the psychological aspects of employee engagement. They found that extrinsic motivation is of importance to employee engagement, though to a lesser extent psychologically but rather as a part of the total package that is offered to the employee by the organization and the manager. Thomas ( 2009 ) saying about intrinsic motivation at work, stated that intrinsic rewards become more important and more prevalent in the workplace today.

Habte ( 2016 ) concluded that managers perceive intrinsic motivation have a larger influence on the psychological aspects of employee engagement than extrinsic motivation. This supports the idea stated by Bergstrom and García ( 2016 ) but still contradict with the finding of Iqbal and Khan.

Michael ( 2008 ) conducted study on using motivational strategy as solution for employee retention and turnover in both public and private sector organizations in South Africa and the researchers used training and development, recognition, reward, a competitive salary package and job security as motivational factors. Kassa ( 2015 ) in his research on motivation and its effect on employee retention in Ambo Mineral Water Factory, stated that employees are highly motivated with reward motivational factors and are less motivated with interesting work and training and development and working environment motivational factors.

Owusu ( 2012 ) conducted research on the effects of motivation on employee performance of commercial bank in Ghana and the researcher used salary, fringed benefits, promotion, and loans as motivational factors. Pessaran and Tavakoli ( 2011 ) conducted research on identifying the employees’ motivation of Parsian hotels in Tehran and the study used salary, security, working condition, status, achievement, recognition, growth and advancement, work itself and responsibility as motivational factors.

Conceptual framework

After reviewing the relevant concepts and theories of motivation (intrinsic, extrinsic) and employee engagement mentioned in this chapter, the conceptual framework of the study has been developed as shown in the following figure (Fig. 1 ).

Research methodology

To achieve this study’s purpose, the researcher has used an explanatory survey research design, and also quantitative and qualitative study survey was employed. Standard close-ended questionnaires were used as a survey tool. The study was used both primary and secondary sources of data. The target population for this research was four city administrative office employees including all kebeles office employees and 349 questionnaires were collected from employees. The study used proportionate stratified with simple random sampling because to collect the relevant data and to give equal chance for all employees.

Since the organization under the study has four city administrations in different area. The sample was drawn from all city administrative offices proportionally as follows (Table 1 ).

After the proper data collection, coding, and organization, the study data were analyzed using descriptive and inferential statistics. Under the descriptive statistics, mean and standard deviation are used and bivariate correlation was used to see whether the independent variables (intrinsic motivation and extrinsic motivation) have a relationship with the dependent variable (employee engagement). To determine the effect of independent variables (intrinsic motivation and extrinsic motivation) on the dependent variable (employee engagement) multiple linear regression analyses were used.

Measurements of variables

The independent variables for this study are intrinsic motivation and extrinsic motivation whereas the dependent variable was employee engagement. The researcher used standardized close-ended and some open-ended questionnaire instruments for collecting the primary sources of data. Questionnaires concerning employee engagement used are adapted from Gallup’s 12 standard questionnaires on the other hand questionnaires regarding intrinsic and extrinsic motivation is adopted from Khan ( 2013 ) Five-point Likert-Style rating scale was deployed in order to know the employees level of agreement on the effect of motivation (intrinsic and extrinsic) and employee engagement. The questionnaire has three parts; the first part is about demographic variables, the second part was about intrinsic and extrinsic motivation, and the last part also about employee engagement. Intrinsic and extrinsic motivation have 8 items each and employee engagement had 12 items and both are used five-point Likert scale ranging from strongly disagree (1) to strongly agree (5).

The study was aimed at analyzing the effect of motivation on employee engagement at selected city administration offices. The dependent variable employee engagement and independent variables extrinsic and intrinsic motivation mean score was comparatively moderate. This points out that the greater part of respondents has a minor agreement on all measures. And also it shows that there was not a problem of multi co linearity, normality, and linearity in the study variables.

Based on the Table 2 result, the Pearson product-moment correlation analysis result showed that there is a moderate positive and significant relationship between intrinsic motivation and employee engagement at .329 and sig .000. This implied if the intrinsic motivation for the employees is increased it will also increase their engagement level. Lower employee intrinsic motivation will also lower their engagement level. The results of bivariate correlation confirmed that there is a moderate positive significant relationship between extrinsic motivation and employee engagement at .444 and sig level of .000. This implied if the extrinsic motivation for the employees is increased it will make significant positive changes in employee engagement. By lowering employee extrinsic motivation, employee engagement will also be lower. The study result showed that there was a moderate positive relationship between overall motivation and employee engagement. Also, extrinsic motivation had a more moderate positive relation with employee engagement as compared to intrinsic motivation.

Table 3 multiple regression analysis results portray that R square is .252 and adjusted R square is .248. This implied that 24.8% variation in employee engagement is explained by motivation in selected city administrations. In addition, the significance value of F statistics indicates a value .000 and it was less than p  < .05 so that it means the model was significant enough.

Also based on Table 4 result, multiple linear regression analysis results also confirmed that intrinsic motivation has a positive significant effect on employee engagement with the unstandardized Beta value of (.249, sig. level .000). As a result, the regression coefficient clarifies the average amount of change in employee engagement was affected by a unit of change in intrinsic motivation.

Regression analysis results also confirmed that extrinsic motivation had also a moderate positive significant effect on employee engagement. Since the beta value is .389 with a significance level of .000. Also, the result of extrinsic motivation showed it had a more moderate positive significant effect on employee engagement as compared to intrinsic motivation.

Furthermore, regression analysis was used to find out the effect of motivation on employee engagement. The result of the model summary from regression analysis indicated that overall motivation has a moderately positive effect on employee engagement. As a result, the regression coefficient clarifies the average amount of change in employee engagement was affected by a unit of change in motivation. The finding of the study indicated that intrinsic motivation has a highly significant effect on employee engagement compared to extrinsic motivation.

Based on open-ended questions feedback in the mentioned offices promotion and other related benefits are based on the strength of relationship with administers, there is a high shortage of working materials, there is no clear authority and responsibility delegation, no attractive work environment, no clear plan is prepared, fairness problem, high workload with unsatisfactory incentive and salary, there is the unnecessary intervention of managers at work, even superiors are not punctual and their incompetency/low problem-solving ability, some employees are hired on the unrelated job with their profession. Additionally, payments are not delivered on time, availability of hostile attitude, no motivational packages are available in those offices, customers’ poor discipline and others are things leading to be demotivated at their work and other related problems are available on those offices.

Comparison of the result of this study with the result of previous researches

As mentioned in the literature reviewed, the study of Christian et al. ( 2011 ) and Chalofsky and Krishna ( 2009 ) suggested that there was link between work engagement and motivational factors. Kahn ( 1990 ) and May et al. ( 2004 ) also relate employee engagement to motivation. Fairlie ( 2011 ) and Macey and Schneider ( 2008 ) pointed out that an investigation is required to find the link between work motivation and employee engagement. Thomas ( 2009 ) saying about intrinsic motivation at work, stated that intrinsic rewards become more important and more prevalent in the workplace today. Habte ( 2016 ) concluded that managers perceive intrinsic motivation have a larger influence on the psychological aspects of employee engagement than extrinsic motivation. Hence the finding of this study also supports these previous findings and also it contradicted with Habte ( 2016 ) finding.

Conclusions of the study

The study also examined the effect of intrinsic and extrinsic motivation on employee engagement. Four hypothesis questions were tested to answer the research question and fulfilled the research purpose. To achieve this objective, a quantitative and qualitative study survey was conducted and the researcher used an explanatory survey research design. A Standard close-ended questionnaire was used as a survey tool. The study was used both primary and secondary sources of data. The target population for this study was selected four city administrative office employees including all kebeles office employees) and as a sample size, 349 questionnaires were filled and collected from these employees. The study used proportionately stratified with simple random sampling because to collect the relevant data and to give equal chance for all employees. Later on, statistical package for social science (SPSS) software was used for the required test of inferential statistics; including reliability analysis, bivariate correlation, analysis of variance (ANOVA) test, and multiple regression analysis. From the findings of the research, it is concluded by answering the research questions and there is a significant positive relationship between intrinsic motivation at .329 and sig .000 and employee engagement and there is a positive significant relationship between extrinsic motivation and employee engagement at .444 and sig level of .000.

Findings of multiple regressions analysis portray that that intrinsic motivation has a positive significant effect on employee engagement with the unstandardized Beta value of (.249, sig. level .000). As a result, the regression coefficient clarifies the average amount of change in employee engagement was affected by a unit of change in intrinsic motivation. So that the decision rule in this research’s first hypothesis is to accept the alternative hypothesis.

Intrinsic motivation has a positive and statically significant effect on employee engagement at (Beta value of .249, sig. level .000). So the decision is to accept the alternative hypothesis and reject null hypothesis.

And also the regression analysis results confirmed that extrinsic motivation had also a moderate positive significant effect on employee engagement. Since the beta value is .331 with a significance level of .000. Also, the result of extrinsic motivation showed it had a more moderate positive significant effect on employee engagement as compared to intrinsic motivation. Based on the above study result the decision is to accept the alternative hypothesis and reject the null hypothesis of hypothesis two.

There is a positive significant effect relationship between extrinsic motivation and employee engagement at the beta value of .331 with a significance level of .000. So the decision is to accept the alternative hypothesis and to reject the null hypothesis.

When we test hypothesis three, the study revealed that there exists a positive significant relationship between both intrinsic and extrinsic motivation and employee engagement. There was also sufficient evidence to conclude that in addition to these relationships successful motivational factors (intrinsic and extrinsic) had positive effects on employee engagement in selected city administration office employees. Hence, for the management to stimulate employees' motivation and also to improve the level of staff works engagement, greater efforts must be placed on the two perceived motivating factors. In addition, as the open-ended question result, there is a low motivation with weak employees’ engagement at work in those offices. So the decision is to accept the alternative hypothesis.

There is a positive significant effect relationship between overall motivation and employee engagement. The decision is to accept the alternative hypothesis and to reject the null hypothesis.

Limitation of the study

In this study, the independent variables, intrinsic and extrinsic motivations were explained only 24.8% of the variation in employee engagement, but the other 75.2% were explained by other factors that were not included in this study. So, future studies could examine the rest variables which can explain the variation in employee engagement.

The study was only focused on four city administration office employees. Therefore, future researchers relating to this topic should assess in a wider and larger scope to include other private organizations and increase the generalizability of the study.

Besides this study, a comparative study could be done to know what the difference is available in different sectors relating to this topic. And another limitation is the research variable taken is subject to the understanding and knowledge of the researcher.

Recommendations

Recommendations for policy and practice.

The study result shows that employees of selected city administrations were motivated by both extrinsic and intrinsic motivations but they were more motivated by intrinsic motivation factors than extrinsic ones. So the management of those offices should give relevant attention to these factors to stimulate the employee’s engagement while developing and or revising strategies and policies for their organization.

The management and policymakers of selected city administrations should use rigorous efforts in encouraging employees intrinsic and intrinsic motivation for better work engagement by creating an attractive work atmosphere and satisfaction, provide appreciation for good performers, moreover the management should also increase employees extrinsic motivation by creating job security, provided promotion and growth, benefits, and good salary, give appropriate reward and recognition for employees, provide opportunities to some form of ownership, as well as increased responsibility and authority.

The organization should find which ways are able to motivate employees, what drives them, then making sure they utilize appropriate motivational techniques with each employee. Managers should also endeavor to communicate the organization's purpose to employees. Finally, the organizations should take steps to incorporate the vision of employees for the organization with his or hers own vision. This will motivate employees to engage and contribute to the organization’s goals.

These offices should give a fair promotion and other related benefits, solve the shortage of working material problems, should set clear authority and responsibility delegation, create an attractive work environment, clear work plan to be prepared, minimize workload and make satisfactory incentive and reward based on their performance, avoid the unnecessary intervention of managers at work, solve unpunctuality problem and could improve managers skill by developmental programs to make them more experienced, some employees are hired on the unrelated job with their profession so review and correct this issue are better. Additionally, payments should to deliver on time, motivational packages should present in those offices, and also to increase employees engagement the office should facilitate short term and long term work-related training, perform periodic performance appraisal, make supervision and control at work, reduce time management problems and unpunctuality, prepare benefit package and equal reward systems, better to make decision makings more participative and open to motivate employees or to create a sense of ownership, should give induction pieces of training when new entrants have joined the office, minimize the availability of corruption and unethical activities, work to keep rule and regulations, try to solve the shortage of office facilities, better to make a fast decision, and other related problems should be solved on those offices.

Generally, selected city administrations should communicate with employees regarding how looks like their motivation and engagement, which things should be fulfilled and the organizations management could assess more factors that are most important to increase employees engagement at work and it should make important corrective actions, it will make employees more engaged, strengthen their relationship with the university as well as it will make employees more motivated and loyal to the organization.

Implications of the study

Theoretical implications.

This study can contribute to the existing literature in employees motivation, their engagement at work and effective human resource management and identifies the ways to satisfy/motivate these employees’ to increase organizational performance. Basically my findings are aligned with those of other scholar’s works relating to this topic and are important to show/provide interesting and recent perhaps promising areas to work on under the recent world.

Practical implications

The actual result of the paper also provide recommendations for public organizations on how to be more competitive through managing their employees, motivating them and also through resilience and renewal different human resource management strategies, and the researcher has also gave relevant recommendations for policymakers and other concerned bodies as shown in above.

Suggestion for future study

The research was conducted from employees’ perspective only by using employees’ engagement. It should be interesting to consider from the perspective of managers by using managers engagement.

The researcher conducted more of quantitative study; deep qualitative study could also be adopted to validate the results of this study. Employees of government organizations and none government organizations may motivate indifferent way, hence it should also be interesting to study from perspective of employees of government organizations.

From the findings of the study it is concluded that the model which included intrinsic motivation (IM) and extrinsic motivation (EM) explained only 25.2% of the variance of employee engagement the rest 74.8% may be due to the other variables which were not included in this study and left for further study.

Availability of data and materials

Not applicable.

Abbreviations

Statistical package for social science

Analysis of variance

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Engidaw, A.E. The effect of motivation on employee engagement in public sectors: in the case of North Wollo zone. J Innov Entrep 10 , 43 (2021). https://doi.org/10.1186/s13731-021-00185-1

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Unveiling the Nexus: Influence of learning motivation on organizational performance and innovative climate of Chinese firms

Roles Conceptualization, Data curation

Affiliation Development and Planning Division, Chengdu University, Chengdu, Sichuan, China

Roles Formal analysis, Investigation

Affiliation School of Continuing Education, Chengdu University, Chengdu, Sichuan, China

Roles Investigation, Methodology

Roles Methodology, Software

Roles Conceptualization, Writing – original draft

Roles Data curation, Writing – original draft

* E-mail: [email protected]

• Yu Zhang, 
• Caizhi Liao, 
• Jialei Liu, 
• Yihe Zhang, 
• Shiquan Gui, 

• Published: May 31, 2024
• https://doi.org/10.1371/journal.pone.0304729
• Reader Comments

This study delves into the interplay between learning motivation, organizational performance, and the innovative climate within Chinese firms. It is a subject of frequent discussion in literature but there is little concrete evidence supporting this viewpoint within the context of small and medium size enterprises in China. Drawing upon a comprehensive review of existing literature and empirical data gathered, this research aims to uncover the connections between employee learning motivation and its impact on the organizational dynamics in the context of Chinese firms. A cross sectional survey is used to collect the data of 115 Chinese firms and structural equation modelling (SEM) is used for empirical analysis. The results show that success of firms in terms of innovation is significantly influenced by organizational learning motivation. Moreover, innovative environment of the firms increases the overall performance of the organizations. It is also found that factors affecting the innovations have a significant impact on organizational performance. The findings of the study suggest that firms should develop organizational learning motivation to boost their innovation capability and overall performance. This study offers insights and recommendations for organizations and policymakers seeking to harness the potential of learning motivation to drive sustainable growth, competitiveness, and innovation in Chinese firms.

Citation: Zhang Y, Liao C, Liu J, Zhang Y, Gui S, Wei Q (2024) Unveiling the Nexus: Influence of learning motivation on organizational performance and innovative climate of Chinese firms. PLoS ONE 19(5): e0304729. https://doi.org/10.1371/journal.pone.0304729

Editor: Kashif Ali, University of Central Punjab, PAKISTAN

Received: November 30, 2023; Accepted: May 16, 2024; Published: May 31, 2024

Copyright: © 2024 Zhang et al. This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Data Availability: All relevant data are within the manuscript and its Supporting Information files.

Funding: This paper is funded by Chengdu Children's Friendly City Construction Research Institute: Investigation on the Current Situation of Psychological Capital of Primary and Secondary School Students in Chengdu (Project No: ETYH-2023-B19). The funder had no role in study design, data collection and analysis, decision to publish, and preparation of this manuscript.

Competing interests: The authors have declared that no competing interests exist.

1. Introduction

The learning motivation of an organization can be defined as "a field toward to the study of cognitive and social processes of knowledge in organizations that are imbricated in organizational and work practices" [ 1 ]. It refers to the drive, desire, or willingness of individuals within an organization to engage in learning activities, acquire new knowledge, develop skills, and improve performance within the organizational context [ 2 , 3 ]. Organizational learning motivation is crucial as it directly impacts the willingness of employees to engage in learning activities, acquire new knowledge, and apply these skills to enhance individual and collective performance [ 4 , 5 ]. Organizations can maximize their competitive advantage by placing a high priority on learning in such settings [ 6 ]. Organizational learning is essential for enabling organizations to produce, distribute, and integrate knowledge and experience while promoting continual learning. The organizational characteristics that encourage learnings are included in the capacity for organizational learning [ 7 ]. This capability includes all organizational and administrative practices that aid in learning [ 4 ]. It is a collection of procedures that improve capacity of an organization to sustain and improve performances or a set of operational procedures that promotes learning [ 8 ].

There is an established relationship in the literature, between organizational learning and organizational performance. Organizational performance is the measure of how effectively an organization achieves its objectives and goals. It encompasses various aspects of an organization’s functioning, including its efficiency, productivity, profitability, quality of products or services, customer satisfaction, innovation, and overall success in meeting stakeholder expectations [ 9 ]. Key components that contribute to assessing organizational performance include metrics such as revenue growth, profitability, return on investment, and cost efficiency [ 10 ]. Assessing the morale, motivation, and commitment of employees, which can significantly impact productivity, innovation, and overall organizational success [ 4 , 6 ].

Innovative climate in firms is also an aspect that affects the learning motivation and organizational performance of the firms. The innovative climate of a firm includes the environment, culture, and conditions within an organization that foster and encourage creativity, experimentation, and the development of new ideas, products, processes, or services [ 11 ]. It is the collective mindset, values, practices, and structures that shape how innovation is perceived, supported, and implemented across the organization [ 12 ]. An innovative climate thrives on a culture that encourages creative thinking, where employees feel empowered to share ideas without fear of criticism. It also embraces calculated risk-taking, understanding that not all innovations will succeed but valuing the lessons learned from experimentation [ 7 ]. An environment that promotes open communication, collaboration, and cross-functional teamwork fosters the exchange of ideas and perspectives. This diversity of thought often leads to more innovative solutions to challenges. A culture that values learning and ongoing development nurtures an environment where employees are encouraged to explore new skills, knowledge, and trends [ 12 , 13 ].

The relationship among organizational learning motivation, innovative climate, and the performance of firms is complex and interconnected. Organizational learning motivation is a key driver of an innovative climate [ 14 ]. When employees are motivated to learn and develop their skills, they are more likely to come up with new ideas, embrace change, and contribute to the organization’s innovation culture [ 8 ]. An organization that promotes learning motivation creates an environment where employees feel encouraged to take risks, experiment, and think creatively, which are crucial elements of an innovative climate [ 15 ]. On the other side, an innovative climate is positively associated with the performance of firms. When an organization fosters a culture of innovation, it tends to develop new products or services that meet customer needs, gain a competitive advantage, improve processes and operations, leading to increased efficiency [ 5 ]. Organizational learning motivation leads to an innovative climate, which, in turn, enhances the performance of firms [ 10 ]. Higher performance can further motivate employees to learn, innovate, and maintain a positive innovative climate [ 8 ]. As the organization’s performance improves, it can invest in resources, training, and tools that promote learning and innovation, further strengthening the cycle [ 11 – 16 ].

There is extensive literature on this topic but there are still several unanswered questions that warrant further investigation. While it is known that learning motivation influences organizational performance and innovative climate, the specific mechanisms through which this occurs remain unclear. Further research is needed to identify the factors that may enhance or inhibit the relationship between learning motivation and organizational outcomes like experimentation, risk, interaction, and dialogue. Despite the theoretical advances, there is a need for research that translates findings into actionable strategies and best practices for Chinese firms. It means that while there is existing theoretical knowledge about topics like learning motivation and organizational performance, there is a gap in translating this knowledge into practical, implementable strategies for Chinese firms. This translation is necessary because theoretical knowledge, while valuable, may not always directly translate into effective actions or practices that can be applied in real-world business settings. To achieve this translation requires several steps like understanding the context. Researchers need to understand the specific context of Chinese firms, including cultural, economic, and regulatory factors that may impact the applicability of theoretical findings. Then there is need to identify the key challenges faced by Chinese firms in implementing theoretical concepts and develop strategies that specifically address these challenges. Based on theoretical insights and empirical evidence, researchers can develop actionable recommendations and best practices that are tailored to the unique needs and circumstances of Chinese firms. Finally, these actionable strategies and best practices should be disseminated to Chinese firms through channels such as academic journals, conferences, and industry publications, and efforts should be made to facilitate their implementation through training programs and consulting services.

Studies that explore the practical implications of enhancing learning motivation for organizational performance and innovation management can provide valuable guidance for managers and policymakers [ 17 , 18 ]. Addressing these unanswered questions can lead to more effective strategies for fostering learning, innovation, and sustainable growth. The problem addressed in the research paper likely focuses on understanding the relationship between learning motivation, organizational performance, and innovative climate within Chinese firms. The study aims to explore how learning motivation among employees influences overall organizational performance and examines how motivated employees contribute to achieving organizational goals and objectives. Another aspect is examining the role of learning motivation in fostering an innovative climate. This involves assessing the impact of motivated employees on creativity, idea generation, knowledge sharing, and the implementation of innovative practices and technologies. The paper also discusses the practical implications of its findings for Chinese firms aimed at enhancing learning motivation and fostering a culture of innovation. This study can provide insights into how to cultivate a culture that encourages creativity, experimentation, and the adoption of new ideas and technologies. Research in this area can contribute to the theoretical understanding of organizational learning motivation, organizational performance and innovative climate. Overall, this study provides valuable insights that can inform both academic theory and practical strategies for organizational development and success in today’s competitive global marketplace.

The research problem of the study could be formulated as that despite the acknowledged importance of organizational learning and innovation for sustained competitive advantage, there remains a gap in understanding how individual learning motivation influences organizational performance and the innovative climate within Chinese firms. The research gap in the study likely revolves around the specific challenges faced by Chinese organizations in fostering and maintaining high levels of learning motivation among their employees. Chinese organizations may face challenges in aligning their organizational culture with a culture that promotes learning and innovation. Traditional Chinese culture values stability and conformity, which may inhibit risk-taking and innovation. The effectiveness of learning motivation strategies may be impacted by the quality and nature of China’s educational system. Issues such as rote learning and exam-focused education could hinder employees’ intrinsic motivation to learn and innovate. Moreover, Chinese organizations may struggle with leadership styles that do not encourage or support a culture of learning and innovation. Autocratic leadership, which is common in Chinese organizations, may stifle creativity and risk-taking. Limited resources, both financial and human, could pose challenges for Chinese organizations in implementing effective learning motivation strategies. This could include constraints on training budgets, lack of access to learning opportunities, or insufficient time for employees to engage in learning activities. In addition, the pace of technological change in China may require employees to continuously learn new skills and adapt to new technologies. Organizations that fail to facilitate this ongoing learning process may struggle to maintain a competitive edge and with increasing globalization, Chinese organizations are facing greater competition from international firms. This places pressure on organizations to innovate and adapt quickly, which may require a high level of learning motivation among employees. This study seeks to address this gap by examining the relationship between learning motivation, organizational performance, and the innovative climate in Chinese firms. Moreover, the significance of the study lies in its potential to contribute to both theory and practice in several ways. This study provides valuable insights into the role of learning motivation in driving organizational performance and fostering an innovative climate, particularly within the context of Chinese firms. This can help advance theoretical understanding of the mechanisms through which individual motivation impacts organizational outcomes. By focusing on Chinese firms, the findings offer practical implications for managers and policymakers in Chinese firms, providing them with evidence-based strategies to enhance learning motivation among employees, improve organizational performance, and promote a more innovative climate. Finally, the study adds to the growing body of literature on organizational learning and innovation, offering new perspectives and insights that can stimulate further research in this important area.

This study has the objective to explore the impact organizational learning motivation including its aspects experimentations, risk, interaction, and dialogue that are most effective in different organizational contexts and these are little focused in the earlier literature related to Chinese firms. Extending this finding would explore the ways in which learning motivation influences the organizational performance. Moreover, this study also has the objective to consider the impact of aspects of innovation performance like efficiency and efficacy on performance of Chinese firms by collecting the primary data and applying the econometric techniques for empirical analysis. It is found that learning motivation of employees positively influences the innovations and performance of workers in Chinese firms.

2. Theoretical foundations

The theoretical relationship among organizational learning motivation, innovation capacity and organizational performance is grounded in several perspectives. Social learning theory posits that individuals learn through observation, imitation, and social interaction. Within organizations, employees’ learning motivations can be influenced by observing the behaviors and outcomes of others. When employees witness colleagues being rewarded or recognized for their learning efforts, they are more likely to be motivated to engage in similar learning activities. This social reinforcement of learning motivation contributes to improved individual and organizational performance [ 19 ]. Expectancy theory suggests that individuals are motivated to engage in behaviors when they believe that their efforts will lead to desired outcomes. In the context of organizational learning, employees who are motivated to learn are more likely to believe that their learning efforts will result in improved job performance, career advancement, and personal development. This belief in the expectancy of positive outcomes drives employees to invest time and effort in learning activities, ultimately enhancing organizational performance [ 20 ]. Goal setting theory emphasizes the importance of setting specific, challenging goals to motivate individuals and improve performance. Organizational learning motivation can be facilitated by setting clear learning goals and providing employees with the necessary resources and support to achieve them. When employees are motivated to attain these learning goals, they are more likely to acquire new knowledge and skills that contribute to enhanced job performance and organizational effectiveness [ 21 ]. Self-determination theory proposes that individuals are intrinsically motivated to pursue activities that fulfill their psychological needs for autonomy, competence, and relatedness. In the context of organizational learning, employees are more likely to be motivated when they have opportunities to autonomously choose learning activities that align with their interests and goals, when they feel competent in their ability to learn and apply new knowledge, and when they experience a sense of connection and belongingness within the organization. Meeting these psychological needs for motivation fosters a positive learning environment and leads to improved organizational performance [ 22 ]. The resource-based view of the firm suggests that organizational learning capabilities, including the motivation of employees to learn and adapt, are a source of competitive advantage. Organizations that invest in fostering a learning culture and motivating employees to continuously improve their knowledge and skills are better positioned to adapt to changing market [ 23 ]. The knowledge-based view emphasizes the role of knowledge creation, sharing, and utilization as critical drivers of organizational innovation. Organizational learning motivations facilitate the acquisition and development of new knowledge and skills among employees, which are essential for generating innovative ideas, processes, and products. As employees engage in learning activities and accumulate knowledge, they are better equipped to identify opportunities for innovation and contribute to the organization’s overall innovation capacity [ 24 ]. Learning organization theory suggests that organizations capable of continuously learning and adapting are more likely to innovate and achieve long-term success. Organizational learning motivations play a central role in cultivating a learning-oriented culture and mindset within the organization, where employees are encouraged to experiment, take risks, and learn from both successes and failures. This culture of learning fosters an environment conducive to innovation, where employees feel empowered to generate and implement novel ideas to address organizational challenges and opportunities [ 11 ]. Innovation diffusion theory highlights the importance of individual and organizational learning processes in the adoption and implementation of innovations. Organizational learning motivations drive the dissemination of new knowledge and best practices throughout the organization, facilitating the adoption of innovative ideas and technologies. As employees become motivated to learn and apply new knowledge, they become champions and advocates for innovation within their respective teams and departments, leading to widespread adoption and integration of innovative practices across the organization [ 25 ]. Absorptive capacity theory suggests that organizations must have the ability to recognize, assimilate, and apply external knowledge to innovate effectively. Organizational learning motivations contribute to the development of absorptive capacity by enhancing employees’ skills in identifying relevant external knowledge sources, evaluating the quality and applicability of incoming information, and integrating new knowledge into existing organizational routines and processes. By fostering a culture of continuous learning and knowledge exchange, organizations can enhance their absorptive capacity and leverage external knowledge to drive innovation [ 26 ]. The Triple Helix model posits that innovation is driven by interactions between academia, industry, and government. Organizational performance is enhanced when these stakeholders collaborate effectively to create and transfer knowledge, develop new technologies, and stimulate economic growth. Innovation capacity serves as a catalyst for collaboration within the Triple Helix framework, as organizations with strong innovation capacities are better positioned to leverage external knowledge and expertise, forge strategic partnerships, and participate in collaborative innovation ecosystems, ultimately leading to improved performance outcomes [ 27 ].

3. Conceptual framework

A conceptual framework outlining the relationship among organizational learning motivation, innovation capacity and organizational performance can be structured as shown in the following Fig 1 . At the individual level, the study considers the concept of learning motivation, which is influenced by different factors while learning motivation is expected to drive individual learning behavior and the acquisition of new knowledge and skills. At the organizational level, the study focuses on two key outcomes: organizational performance and the innovative climate. Organizational performance is a multifaceted construct that includes financial performance, operational efficiency, and overall effectiveness. The innovative climate refers to the organizational culture and practices that support and encourage innovation among employees. The study also proposes that individual learning motivation can influence organizational performance and the innovative climate through mediating mechanisms. Resource-Based view theory suggests that a firm’s unique resources and capabilities are key drivers of competitive advantage and, consequently, organizational performance. According to this theory, firms with valuable, rare, and difficult-to-imitate resources are more likely to outperform competitors. Moreover, agency theory examines the relationship between principals (e.g., shareholders) and agents (e.g., managers) in an organization. It suggests that conflicts of interest between principals and agents can impact organizational performance. For example, managers may prioritize their own interests over those of shareholders, leading to suboptimal performance. The Fig 1 highlights the conceptual framework of the study.

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https://docs.google.com/document/d/1QNspQeJBQQDAaH8VKCbQbj_KLjl_syej/edit?usp=sharing&ouid=109167264099591876564&rtpof=true&sd=true .

https://doi.org/10.1371/journal.pone.0304729.g001

Organizational learning motivation refers to the collective drive and willingness of individuals within an organization to engage in learning activities, acquire new knowledge, and develop skills that contribute to personal and organizational growth. When employees are motivated to learn and grow, they are more likely to be engaged in their work, resulting in higher levels of commitment, productivity, and job satisfaction [ 28 ]. Engaged employees are also more inclined to contribute discretionary effort, proactively seek opportunities for improvement, and collaborate effectively with colleagues, all of which contribute to improved organizational performance. Organizational learning motivation also drives employees to actively seek out new information, engage in training and development initiatives, and apply their learning to solve problems, innovate, and make informed decisions [ 29 ]. The acquisition and application of relevant knowledge and skills enhance employees’ capabilities, performance, and contributions to organizational goals. When employees are motivated to learn and develop, they contribute to the organization’s ability to achieve its strategic objectives, respond effectively to changing market conditions, and sustain competitive advantage over time [ 30 ]. Social Cognitive theory emphasizes the role of social factors in learning and motivation. According to social cognitive theory, individuals can learn by observing others (social learning) and by receiving feedback and reinforcement from others (social reinforcement). Social cognitive theory also emphasizes the role of self-efficacy beliefs in motivation, suggesting that individuals are more likely to be motivated to learn when they believe they have the ability to succeed.

Innovation capacity refers to the organization’s ability to generate, develop, and implement innovative ideas, practices, and solutions that create value for customers and stakeholders. This process contributes to the accumulation of a diverse range of knowledge and expertise within the organization, providing a rich foundation for innovation [ 31 ]. Employees who are motivated to learn are more likely to stay updated with industry trends, emerging technologies, and best practices, thereby fueling the organization’s ability to generate innovative ideas and solutions. Motivated learners are more inclined to engage in creative thinking and problem-solving activities. By fostering a culture of experimentation, curiosity, and risk-taking, organizational learning motivation encourages employees to explore new possibilities, challenge conventional wisdom, and think outside the box [ 32 ]. This creative mindset is essential for generating novel ideas, designs, and approaches that drive innovation and address complex challenges faced by the organization. Moreover, organizational learning motivation enhances the organization’s adaptability and flexibility in response to changing market conditions, customer preferences, and competitive pressures [ 33 ]. Motivated employees are more willing to embrace change, adapt to new technologies and methodologies, and experiment with alternative approaches to problem-solving. This adaptability enables the organization to continuously evolve and adjust its strategies, processes, and products in line with emerging opportunities and threats, thereby maintaining a competitive edge in the marketplace [ 34 ]. Learning-motivated employees are more likely to collaborate with colleagues from diverse backgrounds, departments, and disciplines. By sharing knowledge, exchanging ideas, and leveraging each other’s strengths and expertise, employees can generate synergies and cross-pollinate insights that stimulate innovation [ 35 ]. Collaborative learning environments foster creativity, spark new perspectives, and facilitate the co-creation of innovative solutions that draw upon a wide range of perspectives and expertise within the organization. Diffusion of Innovation theory explains how innovations spread within a social system. In the context of organizational climate, it suggests that an organization’s climate can either facilitate or inhibit the adoption and implementation of new ideas and practices. While complexity theory views organizations as complex adaptive systems that constantly evolve and adapt to their environment. In this view, an innovative climate emerges from the interactions between individuals, teams, and the larger organizational system. Moreover, creative problem solving theory focuses on the cognitive processes involved in generating creative solutions to problems. An innovative climate provides the conditions necessary for individuals to engage in creative problem-solving, such as autonomy, resources, and support from others. In addition, organizational learning theory emphasizes the importance of continuous learning and adaptation for organizational success. An innovative climate fosters organizational learning by encouraging experimentation and reflection on outcomes.

3.1. Literature review and hypotheses

The learning aptitude of the organization defined as "the ability of an organization to process knowledge, i.e., the ability to create, acquire, transfer and integrate knowledge and, also, to modify the behavior to reflect the new cognitive situation, with the aim at improving organizational performance" [ 16 ]. The idea of learning competency of organization, that includes both real and vague resources as well as aptitudes that support reasonable advantage, acts as a catalyst in organizational learning process [ 17 ]. This in turn helps the organizational learning process to advance [ 18 ]. While organizational learning ability refers to the organization’s power to fascinate and alter new information before using it to quickly produce innovative goods that have a competitive advantage [ 19 ]. In addition, aptitude for learning ability of organization functions as together an intrinsic administrative characteristic and a managerial attribute [ 7 ]. Furthermore, apart from its role in easing the learning process within organizations, it actively contributes to the learning process itself and characterize it as the removal of limitations or impediments within the organizational learning process [ 20 , 35 ].

To encourage creation of organizational awareness, organizations should set up procedures and enact policies. These processes include internalization, socialization, and externalization along with variety of management techniques that support a learning environment [ 8 ]. “These practices are the foundation of organizational learning capability, which can be characterized as a set of management practices that facilitate the learning process or as a set of mechanisms that improve the organization’s ability to sustain and improve its performance” [ 8 , 18 ].

The characteristics that support organizational learning were examined by earlier studies [ 7 ]. In order to achieve this, they created a scale that had five dimensions: The aspects include a propensity for risk, engagement with the outside world, conversation, and collaborative decision-making. The scale has furthermore been used in earlier investigations [ 6 , 8 , 20 – 22 ] and this study likewise makes use of these scales. Experimentation refers to how much fresh ideas and recommendations are accepted and managed within the business [ 6 ]. It is associated with endorsing novel concepts, offering positive feedback to employee initiatives, and fostering and facilitating change. Additionally, it includes looking for imaginative answers to difficulties that are based on the prospective use of various techniques and processes. One way to institutionalize organizational learning within the organization is through experimentation [ 5 , 36 ].

Competition, social and economic systems, and policies are only a few examples of the external environment that a company interacts with. These elements have an impact on the business but are beyond of its direct control. This dimension includes metrics related to information exchange and employee involvement with the outside world, as well as the collection and transmission of external environmental data [ 7 ]. The transmission of knowledge, the development of skills, and active engagement in internal problem-solving are the three ways that learning occurs in uncertain contexts [ 23 ]. The level of tolerance an organization has for ambiguity, uncertainty, and mistakes determines its propensity to take risks. Organizations that see inaccuracies as intolerable do not foster learning, as prospective blunders may in fact promote learning. the ability to take chances without endangering the company and the willingness to face new challenges are all indicators of a person’s propensity to take risks [ 7 , 23 , 24 ]. An organization can apply modifications to support organizational learning, hence nurturing specific characteristics such as participative decision-making [ 11 ].

According to the literature, organizational learning and creativity frequently go side by side [ 25 , 37 ]. The development of behaviors and abilities necessary for innovation is fostered by organizational learning, which is frequently seen in efforts focused on product creation [ 26 ]. Researchers that study innovation place a strong emphasis on the heroine that organizational erudition processes play in the creation of new goods. Therefore, it is clear that organizational learning is a prerequisite for any technological breakthrough [ 27 ]. Organizational learning, according to studies in this area [ 4 , 18 , 28 ], has a positive impact on creative performance. The first step in fostering innovation is for people to gather the most recent knowledge and then spread it throughout the company. Organizational learning and creativity are said to be closely related [ 19 ].

• H1 : Organizational learning has a beneficial impact on organizational innovative performance.

Innovations are embraced either in reaction to shifts within internal and external contexts or as a proactive measure to shape those surroundings. SMEs are particularly well-positioned for innovation due to the inherent challenge of expanding and realizing their full capabilities [ 29 , 37 ]. The essence of innovation lies in the conversion and utilization of knowledge within organizations, a process that encompasses the sharing of both knowledge and information among workforces [ 4 , 30 ]. In present analysis, inventive performance is assessed through two distinct dimensions: efficacy and efficiency, a framework initially developed by the study [ 12 ]. These playwrights introduced a measurement scale for assessing artifact novelty performance, known as "innovative performance," which underwent rigorous psychometric testing and validation within the context of biotechnology firms. Efficacy seeks to evaluate the economic influence of modernization on the organization, specifically gauging the success or outcomes resulting from innovation efforts. Meanwhile, efficiency pertains to the process through which these outcomes are attained [ 8 , 38 ].

According to earlier studies [ 14 , 30 ], creative firms have the capacity to quickly adjust to environmental difficulties, leading to improved performance. Innovation improves the efficiency of SMEs [ 31 ]. The nature of the invention, the age of the organization, and the cultural context in which it functions are just a few examples of the many factors that might affect performance. The findings show that organizational learning has a stronger effect on creativity and performance in smaller firms than it does in larger ones [ 11 , 39 ]. Organizational learning efforts have a greater influence on creativity in smaller organizations since there are less established organizational practices there. Using the setting of SMEs, the study [ 32 ] conducted to observe the impact of market direction, learning coordination, and modernization. According to the study’s results, learning helps to promote creativity and that advancement has a positive effect on organizational enactment. In addition, most businesses—including small and medium-sized ones, which make up a significant component of most economies—introduce new goods regularly, regardless of their level of innovation [ 33 ]. Comprehending consumer needs, monitoring competitor actions, staying attuned to technological advancements, and adhering to the principles of organizational knowledge can collectively enable organizations to harness the advantages of innovation [ 9 ]. SMEs can derive enhancements in product quality and increased sales of their manufactured products by embarking on both product innovations and market entry strategies [ 34 ]. Innovation stands as a pivotal tool for augmenting market share and conferring a competitive edge upon a company [ 1 , 13 ]. This optimistic effect on a firm’s enactment culminates in an improved market position, resulting in a distinctive viable advantage and larger overall performance. Consequently, the following hypothesis is postulated:

• H2 : Innovative performance exerts a positive impact on organizational performance.

Factors that promote organizational learning play a pivotal role in enhancing organizational performance in various ways. When organizations foster a culture of knowledge sharing and transfer, employees exchange information, best practices, and lessons learned [ 11 ]. This dissemination of knowledge across departments or teams enhances collective expertise, improves decision-making, and avoids redundant efforts, thus optimizing overall efficiency and performance [ 34 , 40 ]. Promoting a learning culture encourages a mindset of continuous improvement. Employees are motivated to identify inefficiencies, suggest innovative solutions, and implement changes that lead to enhanced processes, better products/services, and increased productivity, ultimately contributing to improved performance metrics [ 35 ]. Organizations that prioritize learning adapt more effectively to changing environments. Employees equipped with new skills and knowledge are better prepared to navigate uncertainties, embrace change, and respond proactively to market shifts, improving the organization’s ability to stay competitive and perform well in dynamic settings [ 5 , 36 ]. Learning organizations encourage creativity and innovation. By empowering employees to explore new ideas, experiment, and take calculated risks, they foster a climate conducive to innovation [ 21 , 37 ]. This innovation leads to the development of new products, services, or processes that can positively impact performance by opening new market opportunities or improving operational efficiency [ 14 , 18 ]. Organizations that invest in learning and development initiatives tend to have higher employee engagement and retention rates. Employees appreciate opportunities for growth, skill enhancement, and career development [ 24 ]. Engaged employees are more committed, productive, and contribute positively to organizational performance [ 22 ]. A learning-focused environment emphasizes learning from mistakes and using them as opportunities for growth. As employees acquire new knowledge and skills, they make fewer errors, make more informed decisions, and approach problem-solving more effectively, thus positively impacting overall organizational performance [ 9 , 32 ]. Factors promoting organizational learning create a cycle of improvement and growth within the organization. By nurturing a culture of learning, organizations empower their employees, improve operational efficiency, foster innovation, and increase adaptability, all of which collectively contribute to improved organizational performance and sustained success.

• H3 : The factors that promote organizational learning have a positive impact on organizational performance.

The organizational learning capability is made up of four parts: experimentation, propensity to risk, interaction with the external environment, and dialogue. Effective performance has features of both effectiveness and efficiency. Organizational performance, on the other hand, is a one-dimensional concept. The empirical relationship is mentioned in the following Fig 2 .

https://docs.google.com/document/d/1xej1bG-7xIIvenG5J8oXO5_bThehM8to/edit?usp=sharing&ouid=109167264099591876564&rtpof=true&sd=true .

https://doi.org/10.1371/journal.pone.0304729.g002

4. Methodology

The research follows a quantitative technique and uses a survey methodology inside a cross-sectional design. It is distinguished by its descriptive and causal nature about its objectives. The inclusion of constructs has been crucial in forming the data collection tool. It is standard practice in behavioral research for researchers to use two or more measurements to evaluate a particular construct or scale [ 11 ], achieving precise measurements with a single unit can be difficult. In order to ensure both soundness and consistency in the measurements, the study adheres the recommendation and attempts to use pre-tested constructs from prior empirical research whenever practical [ 38 , 41 ].

4.1. Data and sampling

On the basis of accessibility and convenience, the sample was selected. Considering the significant economic significance of manufacturing sector in China, this study selected both 115 small and medium enterprises of China. The selection of the research sample was deliberate, based on accessibility and convenience. The aim was to select a sample of small and medium-sized enterprises across the country. Thus, enterprises were chosen that could contribute to the research objectives. The majority of these enterprises having number of employees in the range of 20–100. The sample size was determined following Hair’s [ 27 , 28 ] recommendations. To achieve a statistical significance of 80% and attain an R2 value of 0.25 at a significance level of 95%, considering a total of 4 variables in the model, a minimum of 45 observations [ 27 , 28 , 42 – 45 ] was deemed necessary. A sample of 115 Chinese SMEs was sought in order to lessen the impact of random factors. The firms in the sample are largely involved in manufacturing and majority of the businesses in the sample were started between the years of 1992 and 2009. The data is collected from senior executives of the firms. A preliminary meeting was arranged with the executives of all of the chosen firms taking part in the study to obtain data. A letter introducing the research was given to them at the meeting. Upon receiving positive responses to the study invitation, the questionnaire was forwarded to the HR representatives of the companies. Approval for the research was obtained from the top management of the participating organizations. The appropriate times for data collection were then established. The data is collected from February 1, 2023 to April 30, 2023. A written consent was gained from respondents prior to fill the survey. The response was received via print form and electronic surveys. The characteristics of respondents are given in the following Table 1 .

https://doi.org/10.1371/journal.pone.0304729.t001

4.2. Measurement

The four factors that make up the notion of organizational learning capability are engaged with the external environment, propensity to risk, and dialogue. The statements for evaluation were created using a seven-point Likert scale, with 1 denoting "completely disagree" and 7 denoting "completely agree". Two components make up the creative performance construct: efficacy, which has seven indicators, and efficiency, which has four indicators. To assess the construct of organizational performance, four indicators were employed, comprising two of financial performance (profitability and return on investment) and two linked to market performance (customer loyalty and sales growth). When financial statement data is either not available or does not allow for precise judgments between organizations, indirect measures of organizational enactment then similar to those were used in earlier studies [ 14 , 35 , 46 ]. The justification for using subjective scales stems from both the unwillingness of businesses to provide accurate performance records and the typical reluctance of managers to divulge objective performance statistics. The Confirmatory Factor Analysis (CFA) was used to analyze the data and evaluate the validity and reliability of the components. The Smart PLS Program was used as the operational tool for the subsequent Structural Equation Modelling (SEM) procedure. The structural model, which follows the methodology described by the study [ 39 , 1 , 47 – 50 ], illustrates the connections between the variables and quantifies the explained variation. This analytical method was embraced in order to explore the relationships between factors under analysis and verify a model for determining how organizational learning affects innovative performance and how that in turn affects organizational performance. Separate computations were made in order to evaluate the dependability of each construct. PLS-SEM is a popular statistical technique used for analyzing structural relationships between latent variables in empirical research. In summary, smart PLS is used to apply SEM to determine the relationship of considered variables for this study.

Cronbach’s alpha (CA) is a regularly used dependability method, and values above 0.7 are typically regarded as satisfactory. Hence, alongside Cronbach’s alpha (CA), we also utilized composite reliability (CR) and average variance extracted (AVE). Internal consistency is determined by composite reliability (CR), with values over 0.70 being advised. The reliability measure AVE, on the other hand, shows the percentage of the variance in indicators that can be accounted for by the latent hypothesis and values for AVE greater than 0.5. The discriminant validity indicates the independence of constructs or latent variables from one another, was a crucial factor taken into account while evaluating the models fit [ 1 ]. By comparing the associations between the constructs to the square root of the Average Variance Extracted (AVE) for each construct, the Fornell and Larcker [ 50 ] criterion was used in the first stage. Each construct’s square root of the AVE must be greater than its correlation with other constructs in order for discriminant validity to be established. These criteria check that item factor loadings are higher on the relevant constructs than on other constructs to support discriminant validity. The t-test values should be greater than or equal to 1.96, were taken into account by the study to determine the significance of the models [ 1 ]. Furthermore, the p-value must be lower than 0.05. To evaluate the utility of the constructs in the model, the effect size also known as the Cohen indicator or f2. The effect sizes of 0.02, 0.15, and 0.35 are categorized as small, medium, and big, respectively [ 41 – 43 ]. The study next looked at the results of the structural model and tested the hypotheses after evaluating the goodness-of-fit indicators.

5. Estimated results

Table 2 shows the outcomes of calculating coefficients such AVE (Average Variance Extracted), CC (Composite Reliability), and CA (Cronbach’s Alpha).

https://doi.org/10.1371/journal.pone.0304729.t002

Regarding the AVE values, it’s important to note that merely the second-order paradigm of organizational learning exhibited a value below 0.5, with an AVE of 0.429. However, this particular analysis should be interpreted cautiously, given that the second-order construct comprises all four dimensions of the first order. It’s worth mentioning that an AVE value below 0.5 is not an absolute issue, as some other authors [ 44 ] have considered such values acceptable. When examining the Composite Reliability (CR), it is noteworthy that all dimensions scored above 0.70, indicating good internal consistency. Furthermore, looking at the standards of Cronbach’s Alpha (CA), all exceeded 0.7, reinforcing the notion of good reliability. According to the reliability findings, it can be said that the constructions showed sufficient levels of dependability to assessment of the fundamental model. The R-squared (R2) statistic is used to gauge how well the structural model accounts for endogenous variable variation. R2 levels can be characterized as considerable, moderate, or weak, with values close to 0.75, 0.50, and 0.25, respectively. Cohen proposed that R2 = 2% is a minor effect in the social sciences and behavioral disciplines, R2 = 13% is an average effect, and R2 = 26% is a large effect. As can be seen in Table 2 , every R 2 value was greater than 26%, suggesting a significant effect, which is an indication of a good model.

To prove discriminant validity, the study applied Fornell and Larcker’s criteria for discriminant analysis. Through this method, it is determined whether a model’s indicators are unique to one construct or can be distinguished from those of other constructs. The square root of the AVE is greater than the correlations with other latent variables, which is evidence that the model has discriminant validity. Meeting these requirements demonstrates discriminant validity, proving that various measurements relate to various concepts. Discriminant validity was evaluated across all dimensions in accordance with Fornell & Larcker’s criteria. The square root of the AVE was found to be greater than the correlations with other latent variables. In light of these evaluations, it can be said that the model’s constructs show both reliability and validity. The t-test values for each claim were carefully examined using the criterion of 1.96 [ 1 ] and p-value > 0.05. There was no need for any revisions at this point because every assertion complied with these requirements. According to Fornell and Larcker’s [ 50 ] criterion, Table 3 shows the results of discriminant validity.

https://doi.org/10.1371/journal.pone.0304729.t003

https://doi.org/10.1371/journal.pone.0304729.t004

The goodness of fit is traditionally intended to assess the overall quality of a model. After findings the goodness of fitness, we can estimate the structural equation model and findings are shown in Fig 1 . The choice of Partial Least Squares Structural Equation Modeling (PLS-SEM) as the analytical method can be justified on several grounds. PLS-SEM is particularly suitable for models with complex relationships and multiple latent variables, as is the case in this study. It allows for the estimation of both the measurement model (relationships between observed and latent variables) and the structural model (relationships between latent variables) simultaneously, making it ideal for studying the interplay between learning motivation, organizational performance, and the innovative climate. PLS-SEM is known for its ability to handle small sample sizes effectively, which is often the case in organizational research, especially in the context of Chinese firms where data collection can be challenging. PLS-SEM requires a smaller sample size compared to other SEM approaches, making it a practical choice for this study. PLS-SEM is well-suited for prediction-oriented research, where the focus is on understanding and predicting the relationships between variables rather than testing complex causal relationships. In this study, the aim is to predict how learning motivation influences organizational performance and the innovative climate, making PLS-SEM a suitable choice. PLS-SEM offers greater flexibility in model specification compared to other SEM approaches. It allows researchers to include both formative and reflective constructs in the model, which is beneficial when studying complex phenomena such as learning motivation and organizational outcomes. This approach accommodates differences in measurement models and structural relationships across different cultural contexts, allowing for a more nuanced analysis of the impact of learning motivation in Chinese firms. PLS-SEM is a robust analytical method that aligns well with the objectives and requirements of the study, making it a suitable choice for analyzing the impact of learning motivation on organizational performance and the innovative climate of Chinese firms. While PLS-SEM may be considered less robust for confirmatory analysis compared to covariance-based SEM, its ability to handle complex models, small sample sizes, and prediction-oriented research makes it well-suited for exploratory and theory-building studies. The Fig 3 shows the empirical analysis of structural equation model.

https://docs.google.com/document/d/1ngt-s12u2QFTq8WTmhegLS9tSKtGd3no/edit?usp=sharing&ouid=109167264099591876564&rtpof=true&sd=true .

https://doi.org/10.1371/journal.pone.0304729.g003

The results suggest that the relationships proposed within the second-order construct of organizational learning capability and its first-order variables, namely experimentation, interaction with the external environment, propensity to risk, and dialogue hold validity within the context of organizational learning capability. Organizational learning is the cooperative creation of new shared meanings through communication, equitable involvement, and a readiness to accept divergent opinions. Shared experiences and unrestricted access to information define it. In these situations, productive conversations are essential to the organizational learning process. Notably, "Dialogue" had the greatest impact on the organizational learning capabilities of all the dimensions. By establishing routines for communication among various groups or levels of the hierarchy, bureaucratic processes are reduced, which promotes greater consistency and innovation. This is because people come to share a common thought process and have a better awareness of the issues and objectives of the organization [ 45 , 51 ]. The findings also point to the prevalence of work teams, which are frequently made up of individuals from other industries. The exchange of open knowledge inside these work teams may produce new results [ 46 , 52 ]. This demonstrates how information sharing and cross-functional cooperation may help firms to innovate. Notably, the efficacy dimension exhibited the highest factor loading, indicating a strong association with innovations introduced in the market. This suggests that the effectiveness of innovation efforts, particularly in terms of introducing new products to the market, played an essential role in the overall assessment of innovative performance. It appears that the small and medium-sized companies are primarily focused on staying competitive in the market by continuously innovating their product offerings to align with the evolving demands of a sector that consistently seeks novelty. These companies operate in an industry marked by a diverse range of products with exceedingly short lifecycles, largely dependent on ever-changing fashion trends. The cost and duration of innovative project have a significant impact on the efficiency dimension, which has a significant value. This shows that these businesses place a high priority on time and cost control while creating creative projects. Given that these businesses often face competition from larger corporations, it’s apparent that they prioritize cost-effectiveness to remain competitive. Additionally, the rapid changes in fashion trends are another factor contributing to this focus on efficiency. In an industry characterized by fast-changing trends, organizations need to develop products that can quickly adapt to these shifts and endure in the marketplace for short-term periods. Table 5 displays the results of the hypotheses testing in the study, which further elucidate these dynamics.

https://doi.org/10.1371/journal.pone.0304729.t005

Table 5 demonstrates a positive and significant correlation between organizational learning motivation and innovation performance. According to the standards set by the study [ 40 ], the T-values which exceeded 1.96, indicates that the coefficients are resilient.

6. Discussion

These findings of the study confirm the Hypothesis 1, according to which firms perform more innovatively when organizational learning is made easier. Earlier studies [ 35 , 47 , 53 – 55 ] highlight the crucial role of learning in helping firms to attain agility and flexibility in the innovation process. In fact, a firm with excellent knowledge integration and acquisition skills is more likely to succeed in both product and process innovation, leading to better results in the creation of new goods. A company is likely to do well in terms of product and process innovation if it can successfully incorporate new information into its current knowledge base through a variety of techniques. Simply put, an organization’s performance in innovation is likely to be more impressive the higher its capacity for organizational learning. Organizational learning motivation encourages employees to seek out new knowledge and skills, which can stimulate creativity and innovative thinking. When employees are motivated to learn and explore new ideas, they are more likely to come up with innovative solutions to problems. A strong learning culture within an organization promotes knowledge sharing among employees. When employees are motivated to learn from each other, they are more likely to share their knowledge and experiences, leading to a more innovative and collaborative work environment. It also helps employees to develop a mindset that is open to change and new ways of doing things. This adaptability is crucial for innovation, as it allows organizations to respond effectively to changing market conditions and emerging trends [ 47 ]. Learning motivation encourages employees to continuously improve their skills and knowledge. This focus on continuous improvement can lead to incremental innovations that enhance organizational performance over time. A culture of learning and experimentation encourages employees to take risks and try out new ideas. This willingness to experiment is essential for innovation, as it allows organizations to test new concepts and approaches without fear of failure [ 32 ]. Organizations that prioritize learning and development tend to have higher levels of employee engagement and satisfaction [ 42 ]. Engaged and satisfied employees are more likely to be innovative and contribute positively to organizational performance. Overall, the positive relationship between organizational learning motivation and innovative performance highlights the importance of creating a learning culture within an organization [ 31 ]. By fostering a culture that values learning, organizations can drive innovation and improve their overall performance.

The findings for Hypothesis 2, states that innovation performance influences organizational performance with a favorable and significant relationship. These results underline the standing of innovation in improving organizational enactment and lend credence to the view that innovation is a major factor in an organization’s long-term success. Many studies have looked at the connection between innovation and performance, and they regularly show that there is an advantageous relationship. For example, studies [ 9 , 30 , 56 – 59 ] have demonstrated that innovation contributes to increased organizational performance, highlighting the importance of innovation in achieving positive organizational outcomes. The aspiration of firms to improve their organizational performance and obtain a reasonable edge drives the adoption of innovations [ 60 – 62 ]. Companies recognize that the extent to which they prioritize innovation corresponds with their ability to secure additional competitive advantages and expand their market share. Innovations serve as a pivotal factor for SMEs to establish a strong market status and, consequently, to bolster their marketplace presence and influence [ 31 , 63 – 65 ]. SMEs that excel in organizational learning are better equipped to discern market events and trends. Consequently, these learning organizations tend to be more adaptable and swift in their responses to new challenges compared to their competitors. This agility allows them to maintain competitive advantages over the long term [ 18 , 66 – 68 ].

It can be argued that innovation performance directly contributes to a company’s competitive advantage. Organizations that consistently innovate are able to differentiate themselves from competitors, attract customers, and capture market share. This can lead to increased revenue and profitability, which are key components of organizational performance [ 46 ]. Innovation often leads to improvements in productivity and efficiency. New technologies, processes, or products developed through innovation can help organizations streamline their operations, reduce costs, and increase output. This can result in higher levels of organizational performance as measured by metrics such as return on investment (ROI) and operational efficiency [ 64 ]. Innovation can open up new markets and business opportunities for organizations. By developing new products or services that meet the needs of previously untapped customer segments, organizations can expand their market reach and grow their business. This can have a positive impact on organizational performance by increasing market share and revenue [ 35 ]. Organizations that are known for innovation often enjoy a strong reputation in the marketplace. This can lead to increased customer loyalty, positive brand perception, and a competitive edge. A strong reputation can contribute to organizational performance by attracting top talent, fostering partnerships, and enhancing shareholder value [ 49 ]. Innovation can help organizations manage risk by diversifying their product or service offerings and revenue streams. By continually innovating, organizations can reduce their dependence on a single product or market, making them more resilient to economic downturns or industry disruptions. Organizations that prioritize innovation are more likely to achieve sustainable growth and success in the long run.

There is a positive correlation between the learning motivation of organizations and their performance. As a result, the findings also support Hypothesis 3, which states that organizational learning characteristics have a favorable impact on overall performance of firms. Organizational learning motivation is shown to be correlated with organizational performance [ 69 , 70 ]. But it is important to preserve in mind that innovation is a proven factor in determining how well a business performs [ 30 , 71 ]. It is possible to infer that innovation mediates the link between knowledge and organizational performance. In other words, the advantages of organizational learning may be realized through the innovation process, which will ultimately affect organizational performance. To put it another way, organizational learning motivation affects innovation performance, which in turn affects organizational performance [ 1 , 72 ]. This demonstrates the intricacy of the connections between organizational learning, advancement, and performance, which can differ between and within organizations and in different circumstances. In the long run, learning is necessary for greater performance [ 43 , 73 ]. As a result, organizational learning is frequently seen as a key component of success within a corporation. Moreover, it is emphasized that the ability to learn faster than one’s rivals might be a source of long-term competitive advantage [ 27 , 31 , 74 ].

The earlier study not only highlights the positive influence of organizational knowledge on performance but also emphasizes the arbitrating role of innovation in this association. Several studies propose that organizational learning equips a company with the capabilities needed to enhance innovation, and that revolution, in turn, has optimistic effect on overall performance [ 34 , 48 , 75 , 76 ]. Therefore, organizations that prioritize innovations should also promote organizational learning, as this can help optimize the effect of innovative performance on overall organizational performance. This underscores the interconnectedness of learning, innovation, and organizational success [ 49 – 51 , 77 ]. The outcomes of this investigation support the notion that organizational learning capability is essential for fostering creativity. SMEs should therefore emphasize and improve their organizational learning procedures if they want to advance their enactment through innovation [ 52 , 78 ]. This finding is especially important for smaller businesses and those operating in extremely dynamic and chaotic situations. For long-term success and competitiveness in such environments, the capacity to learn, adapt, and innovate becomes even more essential. The performance of the surveyed organizations was positively impacted by the elements that support organizational learning [ 53 ]. It is obvious that having a strong capacity for learning is essential for innovation and, in turn, enhances organizational success. These findings offer valuable insights to managers, particularly within the context of SMEs, by emphasizing the importance of incorporating displays of organizational learning ability into their supervision tools. This enables the effective implementation of conditions that promote learning within organizations, ultimately enhancing their innovative capacity and overall performance [ 54 , 79 , 80 ].

7. Implications

7.1. theoretical implications.

Theoretical implications of this research contribute to several key areas of social learning theory, goal setting theory, and organizational theory. This research deepens the understanding of these theories explaining the relationship between learning motivation and organizational performance within the context of firms. It provides theoretical insights into how individual-level factors, such as motivation, influence broader organizational outcomes, shedding light on the mechanisms through which employee behaviors and attitudes impact organizational effectiveness. The research has implications for human resource management practices related to employee motivation, training, and development. By identifying the factors that drive learning motivation and their impact on performance and innovative climate, organizations can develop more effective strategies for recruiting, retaining, and motivating employees, as well as designing training and development programs that align with organizational goals. The research also contributes to the literature on innovation management by highlighting the importance of learning motivation in fostering an innovative climate within firms. The research also extends theoretical frameworks of organizational learning by examining how learning motivation influences organizational performance and innovative climate. It contributes to our understanding of the dynamics of learning within organizations, including the mechanisms through which learning motivation drives knowledge acquisition, sharing, and application, as well as the factors that facilitate or inhibit a culture of continuous learning and improvement.

7.2. Practical implications

The findings of this study provide some useful insights for managers of SMEs. It underlines the significance of concentrating on the elements that support organizational learning since these elements both directly and indirectly affect both innovation and organizational success. Within the company, it is indispensable to have a broad-mindedness for vagueness, hesitation, and mistakes. The results emphasize how important it is to listen to fresh ideas and comments from staff members. Innovation is a crucial requirement for survival and ongoing success in the cutthroat atmosphere. Therefore, in order to succeed in this competitive corporate environment, managers need actively promote a culture of learning and innovation. The "Dialogue" component stands out as having the greatest influence on organizational learning. Improving communication is essential for improving knowledge sharing inside the organization. By using cross-functional work teams, managers may formally establish procedures to encourage the exchange of best practices between departments and among employees. Additionally, managers can support original and imaginative methods for problem solving. Promoting the acquisition of new information is vital for SMEs. This may be done by encouraging staff members to routinely attend fairs and exhibitions by highlighting the benefits of networking, learning about new technologies and trends, and gaining insights into competitors, which will help them to acquire fresh perspectives and encounter new things outside of the organization. SMEs can provide financial support for registration fees, travel, and accommodation to make it easier for staff to attend these events. Encourage staff who attend these events to share their insights and learning with the rest of the team through presentations, reports, or informal discussions. Attending fairs and exhibitions exposes staff to new products, technologies, and trends in the industry, which can stimulate innovation and new ideas within the organization. These events provide opportunities to network with industry peers, potential partners, and suppliers, which can lead to collaborations and business opportunities. Attending these events can contribute to the professional development of staff, enhancing their knowledge and skills, which can benefit the organization. By staying informed about the latest industry developments, SMEs can gain a competitive edge over rivals who may not be as well-informed. Incorporating these techniques and fostering a culture of open communication and information sharing may promote organizational learning and, as a result, lead to increased innovation and performance in SMEs.

7.3. Limitations and future research

Despite the study’s strict adherence to the recommended methodology, there are a few limitations that should be considered while analyzing the results. The research focused exclusively on SMEs located in China, potentially limiting the generalizability of the findings. Relying on a single respondent as the primary data source may introduce bias, and employing a social desirability scale could provide deeper insights into responses. It is advised that future studies should examine contingency elements that affect organizational effectiveness and creativity. Studies might also look on the differences in innovation across the industrial and service industries. Additionally, longitudinal research should be taken into consideration in order to evaluate how organizational performance and learning capabilities change over time. The relationship between learning capacity and performance over time may be supported by longitudinal data, and one component of this relationship is an examination of the relationships between financial and non-financial performances.

8. Conclusion

The purpose of this study was to explore the relation among organizational learning motivation, overall organizational performance and innovative performance of SMEs. The findings demonstrate that organizational learning motivation influence the organizational performance in context of innovations. The link between organizational learning and innovation performance demonstrates that learning is the basis for the creation of new products and processes since these innovations are impacted by factors that foster the learning process inside these SMEs. This highlights how essential organizational learning is to encouraging innovation, which may therefore have a positive impact on a company’s success.

The results of the study provide insightful theoretical information and may inspire more investigation in the area. The work advances the evaluation of learning capacities by showing important theoretical implications that are not readily observable. Additionally, by examining the connections between the organizational learning, innovations, and performance within a single model and using units that have been verified in global contexts, this study is an addition to the body of literature. This paper offers empirical support for these linkages, demonstrating their significance and beneficial nature, particularly for SMEs in China. This is especially significant in the empirical research of this field, which makes this study an important addition to our knowledge of organizational dynamics and performance in such settings.

The fast paced nature of the fashion sector supports an innovative culture. The ongoing testing of novel strategies for more effective management and product development is encouraged by this culture. It forces businesses to embrace this cutting-edge viewpoint, which increases their openness to implementing novel practices and technology. The industry’s dedication to innovation is driven by its need to remain competitive and adaptable in the ever-changing fashion landscape.

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Thesis employee motivation and performance

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The role of affective states in the process of goal setting

• Published: 03 June 2024

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• Vahe Permzadian   ORCID: orcid.org/0000-0003-1278-9056 1 &
• Teng Zhao   ORCID: orcid.org/0000-0002-5588-8647 2  

Given that employee performance goals are major determinants of work motivation and performance, examining the factors that influence goal setting has generated substantial research interest. Despite decades of work, however, the relationship between affect and goal setting is poorly understood. Based on mood-as-information and arousal-as-information theories, our study examines the extent that affective valence and affective arousal influence goal-setting processes and, in particular, the extent that the activation level moderates the effect of affective valence. Since theoretical perspectives that attempt to explain the process of goal setting are commonly based on an expectancy-value framework, we examined the effects of affective states on performance goal level and its antecedents of expectancy and valence. Participants were 142 university students, and the performance task was solving anagrams across two trials. Positive affective states were positively associated with expectancy and goal-level judgments, whereas negative affective states were negatively associated with expectancy and goal-level judgments. However, affective states were not found to be associated with valence judgments. Contrary to expectations, our findings did not support the moderating effect of affective arousal. We discuss the various implications of our findings for mood-as-information theory and arousal-as-information theory as well as for future research.

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What is an employee reward program: 20+ Examples and best practices to try in 2024

Admit it, you've dreamt of being showered with gold coins for a job well done.

While Scrooge McDuck-style vaults might not be in the budget, employee reward programs are the next best thing. They're not just about handing out fancy trinkets (though, hey, those can be fun too). Well-designed incentive programs really are like a superhero's utility belt – they boost morale, fight off low engagement , and keep your team feeling valued.

But where do you even begin? Fear not, intrepid HR professional or curious employee! This blog is your one-stop shop for all things reward programs. We'll crack open the treasure chest of knowledge, revealing what makes a program shine and offering over 20 creative ideas to get you started.

From virtual reality experiences to nacho cheese fountain office parties (yes, you read that right), we've got something to fire up even the most jaded employee. So, grab your metaphorical shovel, and let's dig into the goldmine of employee motivation!

What is an employee reward program?

An employee reward program is a structured system designed by organizations to recognize and reward employees for their performance, achievements, and contributions to the company. These programs aim to motivate employees, enhance job satisfaction , and foster a positive work environment.

Rewards can be monetary, such as bonuses, raises, and stock options, or non-monetary, like extra vacation days, public recognition, awards, and professional development opportunities. By acknowledging employees' hard work and dedication, companies can improve employee retention, reduce turnover , and increase overall productivity.

Implementing an effective employee reward program involves understanding what motivates employees and aligning rewards with their preferences and needs. It also requires setting clear criteria for performance evaluation and ensuring transparency in the reward process.

Regular feedback and communication play a crucial role in maintaining the program's credibility and effectiveness. Additionally, these programs can be tailored to individual and even team member achievements, promoting both personal growth and collaborative success .

Ultimately, a well-designed employee reward program not only enhances morale but also aligns employees' goals with organizational objectives, driving sustained business growth and success.

Employee rewards vs employee recognition

Employee rewards and other employee recognition programs are two interrelated concepts that play crucial roles in fostering a positive work environment , but they serve distinct purposes and involve different approaches.

Employee rewards are tangible incentives given to employees to acknowledge their performance, achievements, and contributions. These rewards can be monetary, such as bonuses, salary increases, or stock options, and non-monetary, like additional vacation days, gift cards, or special privileges.

The primary goal of employee rewards is to provide a concrete benefit that motivates employees to maintain or enhance their performance. Rewards are often tied to specific accomplishments or milestones, such as meeting sales targets, completing significant projects, or demonstrating exceptional skills.

By offering tangible rewards, companies aim to reinforce desired behaviors and outcomes, thereby driving productivity and engagement.

Employee recognition , on the other hand, focuses on the verbal or written acknowledgment of an employee's efforts and achievements. Recognition can be formal or informal and may include praise during meetings, personalized thank-you notes, or public acknowledgment in company communications.

The primary aim of an employee recognition program is to make employees feel valued and appreciated for their contributions. Unlike rewards, recognition does not necessarily involve tangible benefits but emphasizes the emotional and psychological aspects of appreciation.

Effective recognition fosters a sense of belonging and motivation, enhancing employee morale and job satisfaction .

What is the purpose of an employee rewards program?

The purpose of an employee rewards program is to motivate employees, enhance their job satisfaction, and drive overall organizational success. By recognizing and rewarding employees for their hard work, achievements, and contributions, companies can create a positive and engaging work environment .

This acknowledgment helps employees feel valued and appreciated, which in turn boosts their morale and encourages them to maintain high levels of performance. When your employees feel appreciated and know that their efforts will be rewarded, they are more likely to stay committed, focused, and aligned with the company's goals.

Additionally, an employee rewards program plays a crucial role in improving employee retention and reducing turnover. In competitive job markets, offering attractive rewards can differentiate a company and make it a more desirable place to work.

Employees who feel recognized and rewarded are less likely to seek opportunities elsewhere , saving the company the costs and disruptions associated with high turnover. Moreover, a well-structured rewards program fosters a culture of excellence and continuous improvement as employees strive to achieve the criteria set for rewards.

Furthermore, employee rewards programs can enhance teamwork and collaboration . By recognizing both individual and team achievements, these programs encourage a cooperative spirit and collective success.

Ultimately, the purpose of an employee rewards program is to create a motivated, loyal, and high-performing workforce that contributes to the sustained growth and success of the organization.

What are the benefits of implementing an employee rewards and recognition program?

Implementing an employee rewards and recognition program offers numerous benefits to both employees and the organization. These programs can lead to increased motivation , enhanced job satisfaction, and a more positive work environment. Here are some key benefits:

1. Increased employee motivation and productivity

Rewards and recognition programs incentivize employees to work harder and strive for excellence. When employees know their efforts will be acknowledged, they are more likely to go above and beyond in their roles, leading to higher productivity and better performance outcomes.

2. Improved employee retention and reduced turnover

Recognizing and rewarding employees for their contributions can significantly reduce turnover rates . Employees who feel appreciated and valued are more likely to stay with the company, reducing the costs and disruptions associated with hiring and training new staff.

3. Enhanced job satisfaction and morale

Regular recognition and rewards contribute to a positive workplace atmosphere. When employees feel that their hard work is noticed and appreciated, their job satisfaction and overall morale increase, leading to a more harmonious and motivated workforce.

4. Fostering a positive company culture

An effective rewards and recognition program helps build a culture of appreciation and respect . This culture promotes teamwork, collaboration, and a sense of belonging among employees, which can enhance overall organizational cohesion and performance.

5. Increased employee engagement

Engaged employees are more committed to their work and the organization's goals. Rewards and recognition programs help employees feel more connected to the company, increasing their engagement and loyalty.

6. Attracting top talent

A strong rewards and recognition program can make a company more attractive to potential employees. In a competitive job market, offering robust rewards and an employee recognition platform can be a key differentiator that helps attract high-quality candidates .

7. Encouraging continuous improvement

By setting clear criteria for rewards and recognizing achievements, these programs encourage employees to continuously improve their skills and performance. This focus on development benefits both the employees and the organization.

What makes up an employee reward system?

An employee reward system comprises various components designed to recognize and incentivize employees for their contributions to the organization. The key elements of an effective reward system include monetary and non-monetary rewards, clear performance criteria, and a structured process for recognition. Let’s take a look at them.

• Monetary rewards are tangible financial incentives such as bonuses, salary increases, stock options, and profit-sharing plans. These rewards directly enhance an employee's financial well-being and serve as a powerful motivator for achieving specific performance targets or milestones.
• Non-monetary rewards encompass a wide range of benefits that contribute to an employee’s overall job satisfaction and work-life balance . These can include extra vacation days, flexible work schedules, professional development opportunities, health and wellness programs , and recognition awards such as Employee of the Month. These rewards often significantly impact employee morale and loyalty.
• Clear performance criteria are essential for a transparent and fair reward system. Establishing specific, measurable, achievable, relevant, and time-bound (SMART) goals helps employees understand what is expected of them and how they can achieve rewards. This clarity ensures that the reward system is perceived as equitable and merit-based.
• A structured recognition process involves regular and systematic acknowledgment of employees' efforts and achievements. This can be done through formal events, public announcements, or personalized appreciation notes. Consistent recognition fosters a culture of appreciation and motivates employees to maintain high-performance levels.

9 Steps to design a successful corporate rewards program

Designing a successful corporate rewards program involves a systematic approach to ensure it aligns with the organization’s goals and effectively motivates employees. Here are nine essential steps to create a successful program:

1. Define objectives and goals

Start by clearly defining the objectives of the rewards program . Determine what you aim to achieve, such as increasing productivity, improving employee retention, enhancing job satisfaction, or fostering a positive company culture.

2. Understand employee needs and preferences

Conduct surveys, focus groups, or interviews to understand what types of rewards and recognition are most meaningful to your employees. This ensures the program resonates with them and effectively motivates their performance.

3. Set clear and measurable criteria

Establish specific, measurable criteria for earning rewards. Ensure these criteria are aligned with organizational goals and are transparent so employees understand what is required to achieve rewards.

4. Develop a budget

Determine the financial resources available for the rewards program. Consider both the monetary reward and non-monetary rewards and ensure the budget is sufficient to sustain the program long-term without compromising its effectiveness.

5. Choose appropriate rewards

Based on employee feedback and budget considerations, select a mix of rewards. Include a variety of options such as bonuses, gift cards, extra time off, professional development opportunities, social recognition, and public recognition.

6. Design a recognition process

Create a structured process for recognizing employees. Decide on the frequency of recognition (e.g., monthly, quarterly), and the methods (e.g., company meetings, newsletters, personalized notes). Ensure the process is consistent and inclusive.

7. Communicate the program

Launch the program with clear and enthusiastic communication . Explain the program's objectives, criteria, and rewards through multiple channels such as emails, intranet, team meetings, and posters. Ensure all employees are aware and understand the program.

8. Implement and monitor

Roll out the program and monitor its progress. Track participation rates, employee feedback, and the achievement of performance metrics. Use this data to assess the program’s impact on employee motivation and organizational goals.

9. Evaluate and revise

Regularly evaluate the effectiveness of the rewards program. Gather feedback from employees and managers to identify areas for improvement. Make necessary adjustments to the rewards platform to keep the program relevant, motivating, and aligned with evolving organizational objectives.

How to create an employee workplace rewards program?

Creating an effective employee workplace rewards program involves a strategic approach to ensure it motivates employees and aligns with organizational goals. Start by defining clear objectives for the program, such as enhancing productivity, boosting morale, or improving retention rates . These goals will guide the program’s design and implementation.

Next, understand employee preferences by conducting surveys or focus groups to determine what types of rewards are most valued. This step ensures the program resonates with employees and effectively incentivizes desired behaviors.

Once you have this information, establish clear and measurable criteria for earning rewards. These criteria should be specific, achievable, and aligned with the organization’s objectives. Employees need to understand exactly what is required to qualify for rewards.

Determine a budget for the program, considering both monetary and non-monetary rewards. Ensure the budget is sustainable and can support the program over the long term.

Select a mix of rewards that cater to different employee preferences. Combine financial incentives, such as bonuses and gift cards, with non-financial rewards like additional vacation days, flexible working hours, and professional development opportunities.

Design a recognition process that is consistent and transparent. Decide on the frequency and methods of recognition, ensuring they are fair and inclusive. Communicate the program clearly to all employees. Use various channels to explain the program’s objectives, criteria, and available rewards, ensuring everyone understands how to participate.

After launching, monitor and evaluate the program’s effectiveness. Collect feedback and track performance metrics to assess its impact. Regularly revise the program based on this feedback to keep it relevant and motivating.

20+ Effective ideas for employee rewards and recognition program

Creating a diverse and effective employee rewards and recognition program involves offering a variety of incentives that cater to different employee preferences and motivations. Here are over 20 ideas to inspire your program:

• Monetary bonuses: Cash rewards for exceptional performance or reaching specific targets.
• Gift cards: Vouchers for popular stores, restaurants, or online retailers.
• Extra paid time off: Additional vacation days or personal leave as a reward for hard work.
• Flexible work hours: Allowing employees to choose their work hours or work remotely.
• Professional development: Funding for courses, certifications, or conferences to enhance skills.
• Employee of the month/quarter: Public recognition with a certificate, trophy, or bonus.
• Company swag: Branded merchandise like t-shirts, mugs, or tech gadgets.
• Experience rewards: Tickets to events, concerts, or weekend getaways.
• Wellness programs: Subsidized gym memberships, yoga classes, or wellness retreats.
• Public acknowledgment: Recognizing achievements in company meetings or newsletters.
• Personalized thank-you notes: Handwritten notes from managers expressing appreciation.
• Team celebrations: Organizing team lunches, dinners, or outings for collective achievements.
• Office perks: Upgraded office equipment, parking spots, or preferred seating.
• Spot awards: Instant recognition for small but impactful contributions.
• Peer-to-peer recognition: Platforms where colleagues can recognize each other’s efforts.
• Charitable donations: Making donations to a charity of the employee’s choice.
• Lunch with leadership: Opportunities to have lunch with senior executives or the CEO.
• Career advancement opportunities: Fast-tracking promotions or special projects.
• Learning subscriptions: Access to online learning platforms like Coursera or LinkedIn Learning.
• Milestone celebrations: Recognizing work anniversaries with gifts or parties.
• Employee recognition wall: A dedicated space in the office to showcase employee achievements.
• On-the-spot awards: Immediate recognition with small tokens or gift cards for exemplary work.
• Health and wellness days: Offering extra days off dedicated to mental health and wellness.
• Customized awards: Personalized gifts based on individual interests and hobbies.
• Leadership development programs: Special training programs for future leaders.

Significance of employee rewards survey questions in understanding their needs

Employee rewards survey questions play a crucial role in understanding the needs and preferences of employees, significantly enhancing the effectiveness of a rewards and recognition program.

By directly asking employees what they value and find motivating, organizations can tailor their employee reward systems, to better align with employee desires. This alignment ensures that the rewards offered genuinely resonate with employees, thereby increasing their motivation and engagement.

Surveys provide insights into the diverse preferences across the workforce. Not all employees are motivated by the same incentives; while some may value monetary bonuses, others might prefer extra time off, professional development opportunities , or public recognition.

By gathering this data, companies can create a balanced and comprehensive rewards program that caters to a wide range of preferences, ensuring broader employee satisfaction.

Moreover, employee rewards surveys demonstrate that the organization values employee input and is committed to creating a supportive and responsive work environment. This process of seeking feedback and acting on it fosters a sense of inclusion and respect, enhancing overall job satisfaction and loyalty.

In addition, these surveys can reveal underlying issues or unmet needs that may not be apparent through regular feedback channels. For instance, employees might highlight a preference for wellness programs or flexible work arrangements, which could indicate broader trends or shifts in workplace priorities.

Addressing these insights can lead to a more supportive and adaptive organizational culture.

Impact of running employee reward programs for small business

Running employee reward programs in small businesses can have a profound impact on both employees and the overall success of the business. These programs are essential for motivating employees, enhancing job satisfaction, and fostering a positive work environment, all of which are crucial for small businesses where each team member's contribution significantly affects the company’s performance.

Firstly, increased motivation and productivity are major benefits. Reward programs incentivize employees to put forth their best effort, knowing that their hard work will be recognized and rewarded. This heightened motivation often translates into improved employee performance and productivity, which is vital for the growth and competitiveness of a small business.

Secondly, improving employee retention is crucial in small businesses, where losing even a single employee can disrupt operations and incur significant hiring and training costs. Reward programs help retain valuable employees by making them feel appreciated and valued, reducing turnover rates, and ensuring continuity and stability within the team.

Additionally, these programs contribute to enhanced job satisfaction and boost employee morale. When employees feel recognized for their contributions, they are more likely to experience job satisfaction and have a positive attitude toward their work. This positive morale can foster a collaborative and supportive work culture, which is essential in the close-knit environment of a small business.

How to measure the success of your employee rewards program?

Measuring the success of an employee rewards program is essential to ensure its effectiveness in achieving organizational objectives and motivating employees. Here are a few key metrics and approaches to consider when evaluating the success of your program:

Employee engagement surveys

Conduct regular surveys to gauge employee satisfaction, motivation, and engagement levels. Include questions specifically related to the rewards program to assess its impact on employee morale and motivation.

Participation rates

Measure the percentage of eligible employees who actively participate in the rewards program. Low participation rates may indicate a lack of awareness or perceived value in the rewards offered.

Retention rates

Track employee turnover rates before and after implementing the rewards program. A decrease in turnover or improved retention rates can indicate that employees feel valued and are more likely to stay with the company.

Performance metrics

Analyze key performance indicators (KPIs) such as productivity, sales figures, customer satisfaction scores, and quality metrics. Determine if there is a correlation between improved performance and the implementation of the rewards program.

Feedback and suggestions

Solicit feedback from employees about their experiences with the rewards program. Consider conducting focus groups or interviews to gather more in-depth insights into employee experience, what aspects of the program are working well and where improvements can be made.

Cost-benefit analysis

Evaluate the costs associated with running the rewards program against the benefits gained. Calculate the return on investment (ROI) by comparing the financial impact of the program (e.g., increased productivity, reduced turnover costs) to the cost of implementing and maintaining it.

Long-term impact

Assess the long-term impact of the rewards program on organizational culture, employee morale, and performance. Look for sustained improvements over time rather than short-term gains.

Benchmarking

Compare your rewards program against industry benchmarks and best practices . Benchmarking allows you to identify areas where your program excels and areas for improvement compared to similar organizations.

Manager feedback

Gather feedback from managers and team leaders about their observations regarding employee motivation, morale, and performance. Managers can provide valuable insights into the program's effectiveness at the team level.

19 Employee rewards survey questions to ask in 2024

Here are 19 employee rewards survey questions tailored for 2024:

• How satisfied are you with the current employee rewards and recognition program?
• Do you feel that the rewards offered align with your preferences and motivations?
• How often do you feel recognized for your contributions at work?
• Have you received any rewards or recognition in the past six months? If yes, please specify.
• On a scale of 1 to 10, how valued do you feel by the organization?
• Do you believe the rewards program has a positive impact on employee morale and motivation?
• How clear are the criteria for earning rewards in the program?
• Do you have any suggestions for improving the current rewards program?
• How likely are you to recommend the organization to others based on its rewards and recognition practices?
• Would you prefer more frequent, smaller rewards or less frequent, larger rewards?
• How important is personalized recognition to you?
• Are there any specific achievements or milestones you believe should be recognized but currently aren't?
• Do you feel that the rewards program is inclusive and fair for all employees?
• How effective do you think the communication about the rewards program is within the organization?
• How satisfied are you with the variety of rewards offered by the program?
• Do you believe the rewards program contributes to a positive work culture?
• How well do you believe the rewards program supports the organization's values and goals?
• What additional benefits or rewards would you like to see added to the program?
• How easy is it to provide feedback or suggestions about the rewards program?

7 Employee rewards programs examples to get inspiration from

Here are seven examples of employee rewards programs that can inspire your organization:

1. Google's peer recognition program

Google encourages employees to recognize their peers through a program called "Peer Bonuses." Employees can nominate colleagues for exceptional contributions, and if approved by management, recipients receive a monetary bonus.

2. Salesforce's V2MOM awards

Salesforce uses a unique approach called V2MOM (Vision, Values, Methods, Obstacles, Measures) to align employee goals with company objectives. They recognize employees who embody these values through the V2MOM Awards, which include cash prizes and trips.

3. Adobe's bravo awards

Adobe's Bravo Awards program allows employees to nominate colleagues for demonstrating company values and going above and beyond their roles. Recipients receive monetary rewards and recognition from senior leaders.

4. HubSpot's culture code awards

HubSpot's Culture Code Awards celebrate employees who embody the company's culture code. Nominations are open to all employees, and winners receive cash prizes, trips, and other perks.

5. Zappos' WOW recognition program

Zappos' WOW Recognition Program encourages employees to recognize exceptional customer service by peers. Recipients receive reward points, which can be used rewards points or redeemed for merchandise or experiences.

6. Microsoft's achievement awards

Microsoft's Achievement Awards program recognizes employees who demonstrate excellence in various areas, such as innovation, customer focus, and teamwork. Recipients receive cash prizes and trophies.

7. LinkedIn's InDay program

LinkedIn's InDay program allows employees to take a day off to pursue personal interests or work on passion projects. This initiative promotes work-life balance and encourages creativity and innovation.

In conclusion, employee reward systems and recognition programs are indispensable tools for fostering a positive work environment, motivating employees, and driving organizational success.

By offering a mix of monetary and non-monetary incentives, aligning rewards with company values and objectives, and actively seeking employee input through surveys and feedback channels, organizations can create effective programs that boost morale, enhance job satisfaction, and increase employee engagement.

By continuously evaluating and evolving these programs based on employee feedback and performance metrics, organizations can ensure they remain relevant, impactful, and instrumental in retaining top talent and achieving business objectives.

Ultimately, investing in employee rewards and recognition is not only a strategic business decision but also a testament to an organization's commitment to its most valuable asset: its people.

Santhosh is a Jr. Product Marketer with 2+ years of experience. He loves to travel solo (though he doesn’t label them as vacations, they are) to explore, meet people, and learn new stories.

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25+ employee recognition survey questions that you should ask your employees in 2024.

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Motivated and engaged employees are more than just a feel-good concept. They translate into tangible benefits for your organization. They're more productive, creative, and likely to stay with your company for long. They become your brand's biggest cheerleaders within and outside the workplace.

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For current information about the demonstrations, see uva.nl/protests External link . 

Presentation Master's thesis - Juliët Appel - clinical developmental psychology

Roeterseilandcampus - Building G, Street: Nieuwe Achtergracht 129-B Room: GS.04

Samenvatting This study explored the effect of audio-learning on academic performance among first-year university students, focusing on the mediating role of motivation and the moderating role of ADHD. The sample consisted of 207 participants from the Brain & Cognition course at the University of Amsterdam. The study found no direct relationship between audio-learning and academic performance, and motivation did not mediate this relationship. However, audio-learning did have a direct effect on motivation. Additionally, ADHD did not moderate the effect of audio-learning on motivation. However, exploratory analyses revealed that reading effort significantly mediated the effect of audio-learning on academic performance. These findings suggest that while audio-learning may not directly improve academic performance, it can promote engagement behaviors, such as increased reading effort, which are essential for academic performance. The results highlight the potential of audio-learning as a supplementary educational tool and the need for further research to optimize its implementation and effectiveness across diverse educational contexts and student populations.

A FRAMEWORK FOR ACHIEVING THE FOUR STUDENT WELLNESS OUTCOMES USING COLLECTIVE SYSTEM DESIGN

In response to the evolving demands of todays competition, there is a growing expectation for enhanced services to industry and academic enterprises. This thesis explores the application of System Engineering methodologies as a strategic approach to securing success with both industrial and academic enterprises. Industry faces issues with the absence of a positive tone, inefficiencies and delays in delivery, and customer satisfaction. Meanwhile, academia faces several challenges including lack of communication between departments, how to allocate institutional resources to simplify student experience, reduce complexity in students college experience, and lack of students motivation. These issues for students lead to poor academic performance, financial struggles, and possibly mental health problems. There is a recognized need for a systematic approach to ensure student success at universities. A fundamental approach emerges in the form of Collective System Design (CSD) to find ways to address the above- mentioned challenges. Collective System Design is explored for ad- dressing the challenges faced by academic organizations and industrial processes. Collective System Design aims to improve the long-term viability of an enterprise by fostering sustainability and success. This thesis further investigates the Collective System Design Language, offering a communication tool for design and an approach to assess effectiveness before implementation. This thesis highlights two case studies: Shuttleworth (manufacturing industry) and the Purdue University Fort Wayne Student Success Standard Process Lifecycle. The impact of solving these problems can be measured through several key indicators: Shuttleworth (Manufacturing Industry). • Reduction in Lead Time • In on-time Delivery • Enhanced Customer Satisfaction and improvement in product quality. Purdue University Fort Wayne. • Improvement in Student Experience and Quality of Life. • Achievement of Student Wellness Functional Requirements and improvements in student retention and four and five year graduation rates. Achievement of Student Success Functional Requirements and improvements in student retention and four and five year graduation rates. There are three main objectives of this thesis: (1) Apply and contrast the application of Collective System Design principles across a manufacturing industrial client and a service enterprise, namely higher education (2) Offer a systematic approach for manufacturing to improve on-time delivery, enhance customer satisfaction, create positive tone by using the principles of Collective System Design, and (3) For academia, develop a System Design Decomposition to define the functions of the university to foster student wellness according to four viewpoints: academic, financial, career, and living wellness. The objective is to incorporate the development of a System Design Decomposition that provides methodology to ensure that student wellness outcomes consider the four viewpoints of wellness (Academic, Financial, Career, and Living). The Student Success Standard Process Lifecycle defines standard processes in all process steps that will facilitate the desired student experience and four wellness outcomes. The lifecycle consists of Student Success States where the lifecycle begins from S0 (learning about university) to S7 (Supportive alumni) and defines standard process steps in each state. Each standard process step seeks to achieve the Functional Requirements from the four wellness viewpoints (academic, financial, career, and living) in Student Success Standard Process Lifecycle. The Collective System Design Decomposition methodology will serve as a structured approach to defining desired student wellness outcomes within a Rapid Design Process, which takes place in the first session focusing on defining outcomes. By leveraging this framework of four wellness viewpoints, the thesis aims to address issues with defining the outcomes for academic, financial, career, and living wellness viewpoints. Each wellness viewpoint has specific Functional Requirements (outcomes) that need to be defined and achieved by Student Success Standard Process Lifecycle and Rapid Design Process, to ultimately enhance student success and well-being at Purdue Fort Wayne University.

Degree Type

• Master of Science
• Electrical and Computer Engineering

Campus location

Advisor/supervisor/committee chair, additional committee member 2, additional committee member 3, usage metrics.

• Systems engineering