Abstract

The objective of this study is to explore the effects of knowledge management strategy on organizational learning by a simulation model. The study extends the March simulation model and compares the effectiveness of the codification and personalization knowledge management strategies in a different context. First, the study finds that codification strategy can improve knowledge rapidly while personnel strategy can reach higher knowledge level more slowly. Second, an inverted U-shaped relationship exists between organization knowledge and personnel turnover when using codification strategy, while personnel turnover is negatively related to organization knowledge in personnel strategy. Third, codification strategy is more susceptible than personnel strategy in an environment turbulence situation.

Key words: Knowledge management strategy, organization learning, exploration, exploitation, simulation.