Improving Strategic Thinking in Management Education with System Dynamics based ILEs: Reflections on a Case Study

ABSTRACT Over the past few years there has been an increasing interest in using computer simulation models to create Interactive Learning Environments ILEs, for management education. Particularly when combined with System Dynamics simulation models, ILEs have proved their validity in a variety of different fields. Starting from these considerations, this paper focuses on the use of System Dynamics based ILEs for processes of individual learning, presenting and discussing the main features of a case study related to service quality management. The effectiveness of the ILE was assessed through a computer based experiment run in a master-course classroom. The paper shows that the ILE supported players to learn to: a) balance the growth of demand-side and supply-side resources; b) simultaneously control tangible and intangible resources; c) take into account the presence and the effects of timedelays; d) develop and apply policies, understanding the short and long term consequences of their decisions.