Identifying the policies for improving the knowledge absorption capacity and their effects on organizational performance : A System Dynamics Approach

Document Type : Original Article

Authors

1 Department of Management, Faculty of Administrative Sciences and Economics, Isfahan University, Isfahan, Iran

2 Department of Management

Abstract

The purpose of this research is to investigate the policies which are most effective on the knowledge absorption capacity and then their effects on organizational performance. In this study we use Balanced Score Card(BSC) as our performance measurement structure. In order to be able to measure the effects of each policy and also their combinations, A system dynamics methodology is applied through which the main variables of the system and its boundaries are identifies. After testing all sections of the model and also the whole model through various validity tests, three separate policies including increased training hours, the competency of interviewers and increased proportion of retired employees been interviewed are performed by a simulation tool by which a stock & Flow model is made during the modeling process. According to the results the best policy for improving absorptive knowledge capacity and hence the organizational performance is a combination of all above mentioned policies. This study leads to a kind of decision support system through which managers in different levels would be able to simulate their potentially effective policies to see if they are actually effective on organizational performance or not. This study is a novel research which combines system dynamics with BSC in the field of knowledge absorption capacity in the organization.

Keywords

Main Subjects

References

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Innovation Management Journal
Volume 7, Issue 3 - Serial Number 25
December 2018
Pages 143-168

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History

  • Receive Date: 21 August 2018
  • Revise Date: 09 May 2019
  • Accept Date: 18 May 2019

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