This observational analysis examines how organizational purpose influences work engagement and market performance in startups, suggesting different motivational mechanisms for goal- and duty-based purposes.
Although organizational purpose (OP) has recently gained attention in entrepreneurship research, its motivational potential in startups remains underexplored, limiting the development of effective purpose‐driven strategies to enhance employee work engagement (WE) and startup performance. This study addresses this gap by drawing on self‐determination theory and person‐organization fit theory to examine the impact of OP on WE among startup employees as well as on downstream market performance. Based on data from 481 startup employees, structural equation modeling is applied to test the motivational impacts of perceived OP, distinguishing between goal‐based purpose (GBP) and duty‐based purpose (DBP). The results reveal differences in their motivational potential: While GBP positively affects WE both directly and indirectly by increasing value congruence between employees and the startup, DBP solely increases WE indirectly by leveraging purpose fit. Hence, GBP and DBP foster WE differently, and through their respective mechanisms, they positively impact startups' market performance.
No takes yet. Share an insight, caveat, or question.
Nussbaum et al. (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: