THE EFFECT OF INTRINSIC MOTIVATIONAL STRATEGIES ON EMPLOYEE PERFORMANCE IN SMALL MARKETING FIRMS: THE CASE OF KIRKOS SUB-CITY, ADDIS ABABA

Abstract

This study investigated the effect of intrinsic motivational strategies; specifically autonomy, skill development, and recognition, on employee performance in small marketing firms in Kirkos Sub-City, Addis Ababa. Recognizing that human capital is a critical driver of organizational success, the study aims to explore how intrinsic motivators contribute to enhancing employee outcomes within the unique context of small marketing firms. Using a quantitative research approach, data were collected from 96 respondents selected through convenient sampling, utilizing a structured close-ended questionnaire designed to measure perceptions of motivational practices and self-reported performance. The data were cleaned, coded, and analyzed using SPSS software, applying both descriptive statistics to summarize respondent characteristics and inferential statistics, including Pearson correlation and multiple regression analysis, to examine the effect of intrinsic motivational strategies on employee performance. The results reveal that intrinsic motivational factors collectively have a significant and positive relationship with employee performance, confirming the central research objective. Among the predictors, autonomy was identified as the strongest influence, with employees reporting higher performance when granted greater independence and decision-making authority. Skill development also demonstrated a significant positive effect, suggesting that access to learning and growth opportunities directly supports enhanced performance outcomes. In contrast, recognition showed no statistically significant predictive effect, despite positive correlations, indicating that acknowledgment practices may require more strategic implementation to yield measurable performance improvements. These findings emphasize the importance of designing human resource strategies that prioritize internal motivators to drive employee performance in small firms where financial rewards alone may be limited. Based on the results, the study offers targeted recommendations for firm management and suggests future research directions that explore the interaction between intrinsic and extrinsic motivational strategies across varying organizational and cultural contexts.