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Business simulation games are one of the most effective tools for motivating and engaging players actively in the learning experience. In this context, understanding which factors promote the intrinsic motivation of players is of primary importance. Self-determination theory (a theory of human motivation) postulates that contexts that support satisfaction of the three innate psychological needs for competence, autonomy, and relatedness allow individuals to maintain intrinsic motivation. However, no previous research has applied this theory to explain motivation while playing business simulation games. To address this gap, we propose that satisfaction of the needs for competence, autonomy, and relatedness influences players’ intrinsic motivation, which in turn facilitates engagement. This study also explores the impact of intrinsic motivation and engagement on the development of generic skills and perceived learning. Based on a survey of 360 undergraduate business students who used a business simulation game, the findings provide support for most of the hypothesized relationships.
