Organizational restructuring and the impact of knowledge transfer

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