The effects of ICT use on employee's motivations: an empirical evaluation

Recent studies underline a positive impact of Information and Communication Technologies (ICT) and new work practices on firms' productivity. In order to obtain productivity gains, firms need to provide workers with sufficient incentives and to encourage motivations. Our econometric results, obtained with data at the individual level collected in Luxembourg in 2004-2005, indicate that Internet use allows for the creation of an enriching work environment that positively influences pure intrinsic motivations of the workers that share the preferences of their firm (insiders). These pure intrinsic motivations are crowded in when the firm provides positive incentives, and crowded out when the firm resorts to monitoring. Moreover, the results show that the virtualization of contact due to the resort of Internet communication instead of face-to-face communication decreases the development of a team spirit between workers. But the magnitude of this effect is smaller than the magnitude of the positive link of Internet use with workers' need of recognition. Concerning workers who think of themselves not as a part of the firm (outsiders), it appears that offering the access to the Internet to those workers does not influence their motivations.