Motivating self-organizing agile teams in new technology-based firms: An exploratory study

Purpose

There is limited empirical research exploring human motivation in the dynamic context of New Technology-Based Firms (NTBFs). This study aims at examining founders’ and employees’ perceptions of motivational mechanisms within agile, self-organizing teams developing new technology-based products. Additionally, it investigates contextual factors that may influence motivation in the entrepreneurial setting of NTBF product development teams. METHODOLOGY: A qualitative multi-source study was conducted using semi-structured interviews with both founders and employees of 26 NTBF cases engaged in new product development using agile team management practices. Self-Determination Theory (SDT) served as the theoretical framework for data analysis.

Findings

The findings summarize and rank motivational drivers from the perspectives of founders, employees, and an aggregated view, interpreting them through the lens of SDT. The most important drivers include financial rewards (salary/equity), product impact and working solutions, team belonging and atmosphere, and autonomy/independence. Furthermore, we identified several contextual factors that influence psychological need satisfaction and, consequently, motivation: (1) organizational structure, including flat hierarchies and flexible work arrangements; (2) work process context, particularly agile management practices; (3) communication and team collaboration practices; and (4) a customer- and innovation-oriented culture. IMPLICATIONS: This study applies Self-Determination Theory to the NTBF context and provides a nuanced understanding of motivation in entrepreneurial team settings. It offers insights into how motivation among both founders and employees is shaped by psychological needs and regulatory mechanisms. Additionally, it provides practical guidance for founders and managers on designing organizational structures and motivational systems that enhance engagement, strengthen employee loyalty, and improve overall motivational outcomes. ORIGINALITY & VALUE: This research contributes to the literature on NTBF success factors by focusing specifically on founder and employee motivation. It offers novel insights into how the organizational setup of agile product development shapes human motivation and highlights both founder and employee perspectives. The study also provides practical implications for designing effective motivational systems in fast-growing NTBFs.