Crowding out or Crowding In! Analysing the effects of External Motivation in Higher Educational Institutions through PLS SEM

Abstract

Faculty engagement is a crucial element that significantly impacts both student outcomes and the overall performance of educational institutions. Recognizing faculty as key assets, institutions must focus on strategies that enhance engagement, thereby improving their competitive advantage. The motivation of faculty members, which is influenced by both internal and external variables, is essential for promoting engagement. This study seeks to investigate whether faculty engagement levels vary, based on intrinsic versus extrinsic motivation through PLS SEM. It also aims to explore the potential crowding-out or crowding-in effect of extrinsic factors on intrinsic motivation, assessing whether the presence of external rewards diminishes or enhances intrinsic engagement. The findings of this study will provide insights for private higher education institutions on how to develop effective measures that enhance faculty engagement, either intrinsically or extrinsically. The findings suggested that the Private Higher Educational Institutions, by simply adding extrinsic rewards may not be able enough to meaningfully change faculty members' engagement levels.   Organizations may need to focus on providing extrinsic rewards that are perceived as supportive, non-controlling, and aligned with the faculty's sense of autonomy and competence. It is important to balance extrinsic rewards to ensure they do not overshadow intrinsic motivation, promoting a sustainable and cohesive approach to faculty engagement.