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Abstract This research draws on the self‐system model of motivational development to explain how the use of business simulation games in class facilitates students’ engagement and enhances their learning. Based on a survey of 360 undergraduate students who played a business simulation game in a marketing course, the findings show that students’ perceptions of competence, autonomy, relatedness and self‐efficacy have a positive impact on their cognitive, emotional and behavioural engagement. In addition, cognitive and emotional engagement have a positive influence on skills development and perceived learning.
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