Simulation of an Organization as a Complex System: Agent-Based Modeling and a Gaming Experiment for Evolutionary Knowledge Management

Abstract

An agent-based model is employed to simulate an organization as a complex adaptive system which reveals how organization creates value through evolutionary knowledge management by autonomous agents from the bottom up. One of the surprising findings indicates that organizational performance is non-monotonically improved by either knowledge creation or diffusion. Meanwhile, a gaming experiment is conducted to verify the model and collect empirical evidence for model enhancement. Various causal relations among agents' behavior, the turbulence of environment, the emergent social structure, and the organizational performance are elucidated. This study demonstrates the integration of multi-agent simulation and human experiment as a novel, robust, and scientific approach on tackling complexity and uncertainty involved in the field of knowledge management.