Organizational restructuring and the impact of knowledge transfer

This paper examines the impact of knowledge transfer in organizational restructuring using a computer simulation model. The study demonstrates that the direction of the change, the nature of the external environment, and the learning mechanism can all influence how knowledge transfer affects organizational performance. Specifically, the study shows that organizations may suffer the most performance degradation through a vertical structural change. It also reveals that expansions tend to cause a greater impact on organizational performance while downsizings in an unpredictable environment can also be highly risky. The study further indicates that learning can be a very effective mechanism for rebuilding organizational knowledge and buffering the negative effect of organizational expansions, though its benefit may be limited under a predictable environment or in organizational downsizings.

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