Business Management Simulations as a Pedagogical Tool to Improve Student's System Dynamics Thinking


Page 76 - Developments in Business Simulation and Experiential Learning, volume 42, 2015 

 

ABSTRACT 

 
The leading business management simulations used in higher 

education and organizational training programs provide multi-

ple benefits. Used primarily in strategy courses and other relat-

ed areas, these simulations have been found to effectively intro-

duce business concepts, inculcate a cross-functional under-

standing of business, build team skills, enable better translation 

of data into information, and improve overall decision-making 

skills (Kulkarni and Sivaraman, 2013.) Although the most popu-

lar strategic management simulations do not explicitly incorpo-

rate system dynamics theory, this paper argues that the implicit 

characteristics of system dynamics in these simulations have 

powerful learning potential. We also argue that the key charac-

teristics of system dynamics- multiple feedback cycles, time de-

lays, the differences between stocks and flow, and nonlinearities

- are non-intuitive and therefore are more easily learned in 

experiential exercises such as simulations. This paper first lays 

out systems dynamics theory and its application to simulations. 

Second, one of the most popular strategic management simula-

tions is analyzed and its primary features that exhibit system 

dynamics are presented. Finally, the implications for enhancing 

student decision-making abilities are discussed.  

BUSINESS MANAGEMENT SIMULATIONS  

AS A PEDAGOGICAL TOOL  

TO IMPROVE STUDENT'S SYSTEM DYNAMICS THINKING  
 

Chris Papenhausen 

 

Satyanarayana Parayitam