Capturing Tacit Knowledge within Business Simulation Games

Capturing Tacit Knowledge within Business Simulation Games

Meira Levy (Shenkar College of Engineering and Design, Israel) and Nava Pliskin (Ben-Gurion University of the Negev, Israel)
DOI: 10.4018/978-1-4666-0149-9.ch024

Abstract

Knowledge, in particular the tacit knowledge embedded in people and groups, is considered a strategic organizational asset. Many organizations harness knowledge to increase the quality of decision-making processes, especially in the current complex global business environment. Many organizations also harness business simulation games to support learning aimed at improving decision-making processes. Given the importance of knowledge, on the one hand, and of simulation games, on the other, this chapter presents a conceptual model for embedding knowledge management capabilities, including Web 2.0 applications, within simulation games environments for the purpose of improving the learning outcomes with regard to capturing tacit knowledge as well as to developing online communication skills.
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Introduction

Decision-making processes of high quality are important for organizational success in the unpredictable global business environment. In particular, tacit knowledge is considered an intangible asset that has strategic value which can yield a competitive advantage (Leidner, 2000; Polanyi, 1967). Moreover, successful management of an organization in the current dynamic environment involves effective integration of multi-systems perspectives regarding operations, services and business processes (Shtub & Karni, 2010). Thus, the capability of an organization to bring knowledge into action and, in particular, to embed knowledge management (KM) processes within decision-making processes is becoming a critical success factor (Bolloju et al., 2002; Nicolas, 2004). Recent research suggests, however, that decision makers sometimes make poor decisions due to bounded rationality and limited cognitive capabilities, quite often overlooking existing organizational knowledge, whether embedded in the organization's information systems or in the minds of various stakeholders (March, 1978; Stanovich & West, 2000; Kahneman, 2003; Bazerman, 2006; Levy et. al., 2010). Oftentimes, investments in information technology are made without realizing the importance of social relations that foster conversational KM and group collaboration (Wagner, 2004), to enhance knowledge creation and to be further used by decision-makers, as Cole describes:

“The gap between data warehousing and knowledge creation can be large indeed. It is one thing to slice and dice information from an integrated customer base to segment markets and conduct more focused sales campaigns. It is quite another to use that information to reorganize work routines in ways that embed knowledge in new products and services that lead to sustained competitive advantage. While informal mechanisms for the effective conversion of information into knowledge may limit wide dissemination, formal procedures packaged in powerful information technologies often inhibit learning. A redoubling of efforts to leverage explicit knowledge through new information technologies is bound to disappoint.” (Cole, 1999, p. 19)

The social collaborative dimension of Web 2.0 is relevant for KM since it offers ways to cultivate and exploit knowledge sharing in enterprises (Wagner, 2004; Kirchner et al., 2009). Organizations are beginning to explore the potential of Web2.0 tools and concepts for KM across the enterprise (Anderson, 2007). Moreover, while current KM systems, based on the original Web technologies, aim at eliciting and making widely available in sharable platforms employees’ tacit knowledge, best practices and relevant experience, Web 2.0 technologies can enable generation and sharing of knowledge in a distributed manner (McAfee, 2006). However, although Web 2.0 applications are known to have potential benefits within organizations, adoption is still rather limited (Lynch, 2008) due to personal and managerial barriers (Neus, 2001; Szybalski, 2005; Cosley et al., 2005).

Key Terms in this Chapter

Knowledge Management: A range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences.

Decision Making: The mental cognitive process associated with selection of one course of action out of several alternatives.

Web 2.0: Web applications that facilitate participatory information sharing, interoperability, collaboration, and user-centered design.

Tacit Knowledge: Knowledge characterized by difficulty in transferring from one person to another by means of writing down or verbalizing, hidden assumptions, beliefs, norms and culture as well as unconscious mental models.

Collaboration: Working together to achieve a goal.

Social Network: A social structure made up of nodes (individuals or organizations) which are connected by one or more specific types of interdependency link (friendship, kinship, common interest, financial exchange, dislike, sexual relationships, or relationships of beliefs, knowledge or prestige).

Reflection: Self-observation and reporting of conscious inner thoughts, desires and sensations.

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