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In today's fast-paced digital world outperforming competitors and achieving success becomes utterly challenging for Small and Medium-sized Enterprises (SMEs). The rapid speed of technological change can threaten established industries and undermine existing businesses. By effectively harnessing innovation, businesses can open-up new markets and develop new ways to accommodate the needs of existing customers. Countless research findings reveal that innovation is one of the most essential factors to ensure strategic efficiency and effectiveness in SMEs. Human resources play an integral part in attaining company’s goals and objectives. By motivating and encouraging employees to be more innovative, companies can quickly reap the benefits of competitive marketplace. In addition, employees can become a great source of creative and innovative ideas for future endeavors. In this rapidly changing environment, managers should reveal high levels of creativity in offering a plethora of motivational incentives to employees. Increasing employee enthusiasm, motivation and personal commitment remain one of the most enduring and challenging tasks that managers must tackle. Present paper addresses the issue of motivation among Information Technologies (further in the text IT) professionals in fostering innovation. The aim of the paper is to determine the role and significance of motivation in encouraging innovative and creative activities among IT professionals working in the small and medium sized enterprises. The objective of the research is to find the linkage between IT employee’s motivation and their contribution to innovation.

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