There is a significant amount of research that supports the effectiveness of business simulations as learning tools.
Here are some of the key reasons why business simulations work:
- Experiential Learning: Business simulations allow learners to actively engage in problem-solving, decision-making, and other business activities. This hands-on, experiential approach to learning is more engaging and memorable than passive learning methods like lectures or reading.
- Transfer of Learning: Business simulations help learners transfer their new knowledge and skills from the simulation to real-world situations. This is because simulations are designed to closely mimic real-world scenarios, allowing learners to apply their learning in a context that is relevant and meaningful to them.
- Cognitive Load Management: Business simulations can help learners manage their cognitive load, or the amount of information they need to process at any given time. Simulations are designed to present information in a structured, step-by-step manner, making it easier for learners to absorb and apply new concepts.
- Immediate Feedback: Business simulations provide immediate feedback to learners, allowing them to see the consequences of their decisions and adjust their approach accordingly. This feedback loop is essential for effective learning, as it helps learners identify and correct mistakes and reinforce good decision-making habits.
- Emotional Engagement: Business simulations can be emotionally engaging, which can help learners remember and apply their learning more effectively. By creating a sense of urgency, risk, and reward, simulations can motivate learners to take risks, experiment with new approaches, and learn from their mistakes.
Business simulations are such successful learning tools because they provide an engaging, hands-on learning experience that closely mimics real-world scenarios. By providing immediate feedback, managing cognitive load, and engaging learners emotionally, simulations help learners transfer their learning to real-world situations and build the skills and knowledge necessary to succeed in today’s complex business environment.
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The Research
There is a considerable amount of academic research that supports the effectiveness of business simulations as learning tools:
- Kolb, D. A., & Kolb, A. Y. (2005). Learning styles and learning spaces: Enhancing experiential learning in higher education. Academy of Management Learning & Education, 4(2), 193-212.
- Leitner, K. H., & Hrsg, G. U. (2015). Simulations in learning and development: A theoretical and practical handbook. Springer.
- Sitzmann, T., & Ely, K. (2011). A meta-analysis of self-regulated learning in work-related training and educational attainment: What we know and where we need to go. Psychological bulletin, 137(3), 421.
- Dede, C., Ketelhut, D. J., Whitehouse, P., Breit, L., & McCloskey, E. M. (2009). A research agenda for online teacher professional development. Journal of Teacher Education, 60(1), 8-19.
- Gredler, M. E. (1996). Educational games and simulations: A technology in search of a (research) paradigm. Simulation & gaming, 27(1), 49-62.
These studies suggest that business simulations can be effective tools for promoting experiential learning, transferring knowledge and skills, managing cognitive load, providing immediate feedback, and engaging learners emotionally.