Tiers of Engagement III: The Psychological Learning Engine in Online Business Simulators

Abstract

This article explores the primary drivers of student learning in the context of business simulation games as part of an online business economics program. Specifically, it investigates whether perceived learning is driven more by a student's internal psychological states or by external course designs, such as added narrative assignments and optional collaboration. By analysing quantitative and qualitative survey data (N=321) in the form of a post-simulator reflection assignment, the study evaluates the impact of motivation and engagement on business simulators as learning environments. The findings reveal that students’ internal psychological states, specifically their intrinsic motivation, active engagement, and depth of reflection make up the primary "engine of learning”. Demographic factors, such as gender and age, had no significant impact. Pedagogical elements external to the simulator, like narrative assignments and optional collaboration, did not directly improve perceived learning. However, they functioned as essential catalysts. Collaboration acted as a "social buffer" that helped students overcome technical and academic frustrations. Added narrative tasks acted as "metacognitive speed bumps" that gave motivated students opportunities to switch between types of learning activities, enabling them to connect the simulator to the theoretical curriculum. On the other hand, students with low motivation experienced the tasks as disruptive. The study concludes that while intrinsic motivation and engagement drive learning, thoughtfully designed friction can help in fostering deep, self-regulated learning in online simulators.