Blended learning is widely adopted by organizations where a blend of online component complements the traditional face-to-face learning. Despite its popularity, research on developing a model for blended learning effectiveness is limited. This paper develops and validates a research model for blended learning effectiveness by investigating the role of engagement on perceived learning effectiveness. Further, the role of internet self-efficacy (personal factor) and interactions (environmental factors) on various dimensions of engagements are examined through the lens of social cognitive theory. A total of 246 postgraduate Indian students participated in a Management Information Systems course. Structural equation modeling is used to validate the research model empirically. It is found that the internet self-efficacy and the interaction factors are positively related to the engagement dimensions, which further positively affects the perceived learning effectiveness. Moreover, perceived learning effectiveness is positively related to student scores. Theoretical and practical implications are discussed.