Conceptual Understanding in Simulation Games
In the second article in a series drawn from the research work of Ranchhod et al (2014), available here, I will focus on the use of an online simulation environment to develop conceptual understanding of business concepts, predominantly strategic marketing based decisions, all under the watchful gaze of my countryman Hume.
The scholars set an inventory of learning goals which also included experience generation, skills development and affective evaluation each of which will be covered separately in more detail. However, the focus on ‘experience generation’ is particularly noteworthy as the researchers sought to test for a phenomena that is in many ways the raison d’être of business simulation use, namely the ability of participants to experiment with business ideas and use the simulated environment to take risks that cannot be taken in a real business environment. That is almost precisely how the learning goal was described. If confirmed, it offered credible empirical evidence that supports one of the main claims business simulation specialists make in support of their work.
Conceptual understanding was also to be tested and related specifically to cognitive ability (from Bloom) where the emphasis is on “understanding and retention at conceptual, procedural and strategic level”, further disaggregated by the scholars to include aspects such as terminology, concepts, and principles as well as the interdependence between business functions. The crux being that these concepts require application in complex situations which are, crucially, realistic for the participant. In this vein it was noted from the research that the simulation provides a simplified representation of the business world, yet is also an accurate one. The experience is one of a dynamic system which requires analysis, decision making and implementation of strategy over multiple phases. As such, it is a ‘concrete experience’ to use experiential learning terminology. This then means that it allows for a Lewinian learning cycle where concrete experience is followed by reflection and observation and the formation of abstract concepts and generalisations. Essentially, the ability of participants to be able to formulate their own conceptual models and explanations for the learning experience. In this particular study a main hypothesis was that there would be a causal relationship between the environment of the simulated business world and conceptual understanding of business issues.
In sum, the conceptual understanding learning goals were:
- Understand the theoretical foundations of market competition
- Understand the concept of the strategic perspective
- Understand the theoretical foundations of market behaviour
- Understand the concepts and theory of marketing communications
- Understand the concepts and theory of distribution
- Understand the concepts and theory of pricing
- Understand the theoretical foundations of product management
- Understand the theories and models of information management
- Understand the theoretical foundation of business finance
From experience as an educator working with MBA and MSc Management cohorts I would say this list is pretty intimidating. Even taking relatively experienced and well-educated employees into a simulation with an expectation that they will assimilate this type of knowledge is a considerable challenge. How many senior managers or L&D professionals would be thrilled if they could describe their employees’ acumen in such terms? Many I would warrant.
So what did they find?
Since I’ve taken the time to report this study in such detail it may not surprise you to know that the hypotheses were confirmed with moderate to high value in terms of conceptual understanding from a single simulation experience. The statistical data demonstrated that the experience value generated by the simulation had “a very strong impact on conceptual understanding” and so reinforced the cognitive outcomes from the pedagogical process. Significantly, the authors highlighted the ability of the simulation to engender effective decision making skills in complex and dynamic situations despite the “simplification and abstraction of the simulated environment”.
Herein lies the single most salient finding from my perspective. Simulation games are inevitably judged in relation to the real world and it is the authors who make a tremendous contribution here by describing the world of the managers working in medium and large sized firms. They are characterised as taking decisions following a process of analysis and interpretation of the available data, working with specialists usually without direct contact with the actual products they sell. They may have tremendous technical knowledge of the commercial offer and value proposition, but it is the value of interpersonal communication and the capacity to analyse abstract information in a market context which affords them success. They operate with high flexibility in unexpected competitive situations and are charged with continuously advancing the organisation’s objectives through the balancing of tactical decisions with long-term strategic goals. Phew. According to the authors this is precisely the process which occurs in a well organised and effective simulation experience.
Empirical evidence. Proof.
And whilst this is only one study I would ask that you take a second to think about the research process. This was no short course with a hastily derived set of learning goals scribbled in bullet point. It was a scientifically designed study which specified in detail not only the method but the precise meaning of every learning goal under scrutiny. It is the antithesis of the generic ‘business acumen’ programme.
Next we will hear what the study had to say about skills development and the affective domain.
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