Examining employee engagement in virtual work: an integrated self-determination and psychological contract perspective

Abstract

The rapid expansion of virtual work has transformed organisational structures and employee experiences, creating the need to reassess the drivers of employee engagement in digitally mediated environments. Drawing on Self-Determination Theory (SDT) and Psychological Contract Theory (PCT), this study aims to examine how organisational factors (training adequacy and preparedness) and psychological factors (commitment and motivation) influence employee engagement in virtual work settings. A quantitative, cross-sectional survey was conducted among 195 employees engaged in virtual work in Mauritius, using purposive and convenience sampling. Data were analysed using partial least squares structural equation modelling, complemented by mediation analysis and Importance-Performance Map Analysis. The results indicate that motivation is the strongest predictor of employee engagement, followed by commitment and preparedness. In contrast, training adequacy does not directly influence engagement but operates indirectly through preparedness and commitment. The findings highlight the importance of psychological mechanisms in explaining how organisational practices are associated with engagement. This study contributes to the literature by integrating SDT and PCT into a unified framework to explain employee engagement in virtual work contexts. It advances prior research by clarifying how organisational conditions and psychological mechanisms jointly shape engagement, and provides empirical evidence from a small island developing economy.