THE IMPACT OF BUSINESS SIMULATION GAMES TECHNOLOGY IN ENHANCING LEARNING IN STRATEGIC MANAGEMENT PROGRAMS: A CASE OF CAPSIM IN USIU BY DENNIS KIBAARA MBAABU UNITED STATES INTERNATIONAL UNIVERSITY FALL 2013 THE IMPACT OF BUSINESS SIMULATION GAMES TECHNOLOGY IN ENHANCING LEARNING IN STRATEGIC MANAGEMENT PROGRAMS: A CASE OF CAPSIM IN USIU BY DENNIS KIBAARA MBAABU A Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) UNITED STATES INTERNATIONAL UNIVERSITY FALL 2013 ii STUDENT’S DECLARATION I, the undersigned, declare that this is my original work and has not been submitted to any other college, institution or university other than the United States International University in Nairobi for academic credit. Signed:________________________________ Dennis K Mbaabu (ID: 251403) Date:_______________________ This project has been presented for examination with my approval as the appointed supervisor. Signed:________________________________ Prof. Sylvester Namuye Date:_______________________ Signed:________________________________ Dean, Chandaria, School of Business Date:_______________________ iii COPYRIGHT No part of this project may be produced or transmitted in any form or by any means electronic, magnetic tape or mechanical including photocopying, recording on any information storage and retrieval system without prior written permission from the author. © Copyright by Dennis Kibaara Mbaabu, 2013 iv ACKNOWLEDGEMENTS I take this opportunity to express my profound gratitude and deep regards to my guide Prof. Sylvester Namuye for his exemplary guidance, monitoring and constant encouragement throughout the course of this project. I also take this opportunity to express a deep sense of gratitude to the USIU staff and faculty for the cordial support, valuable information and guidance, which helped me in completing this task through various stages of undertaking this research project. Lastly, I thank God Almighty, my parents, my loving wife, and children for the kind understanding and constant encouragement they have extended to me to complete this project. v ABSTRACT The purpose of this study was to establish the impact business simulation games had in enhancing learning in the strategic management programs. The objective of the study was to determine the effectiveness of business simulation games, to determine the students’ perceptions towards the usage of business simulation games and to determine factors affecting the adoption of business simulation games. The study adopted a quantitative research design in gathering, analyzing, interpreting and presenting information. The study used descriptive research design in determining the strength of relationships between the level of satisfaction of usage of business simulation games and the effectiveness in enhancing learning. The research questionnaires were used to obtain needed information from students attending the introduction to strategic management. The whole population of the introduction to strategic management classes during the summer semester was 67 students. This population was used as a sample frame whereby purposive sampling technique was used to get a sample size of 36. Descriptive statistics was used in data presentation and reporting. The first objective was to determine the effectiveness of business simulation games. It was established from the study that business simulations games are very effective in introducing business concepts, enhancing decision making skills and appreciation of cross-functional nature of business. Once business concepts and common objectives of business simulation games are introduced, this gives learners hands on experience in formulating and implementing strategy. The second objective was to determine the students’ perceptions towards the usage of business simulation games. From the study, it was established that the level of perception by students towards the use of business simulation games is highly positive. Students perceive and value business simulation games as valid representation of real world issues facing managers which entails analysis of multiple variables, improvement of skills in strategy formulation, combination of diverse marketing concepts and techniques, dynamic financial concepts, problem solving techniques, communication and teamwork. Additionally, students prefer the use of business simulation games in learning vi environments more highly than the use of other forms of teaching, such as, lectures, case studies and readings. The last objective was to determine the factors affecting the adoption of business simulation games. From the study, it was established that the perceived usefulness and ease of use does affect how business simulation games are adopted and used. The degree to which a person believes that using a particular system would enhance his or her job performance (perceived usefulness) and the degree to which the prospective user expects the target system to be free of effort (ease of use) has enabled students adopt fully the usage of business simulation games into learning. The study concludes that the use of business simulation games has a high impact in enhancing learning in the strategic management programs. Effectiveness on the usage of business simulation games, students’ perception towards the usage and the factors affecting the adoption play a key role in determining the impact of enhancing learning. The study recommends United States International University adopts a feedback mechanism from students with regards to the CAPSIM simulation game in order to review to submitted suggestions on areas that require improvement. Improve the internet speeds for purposes of assisting students to easily access and participate in CAPSIM simulation game. Slow internet speeds greatly impact on accessibility and functionality of the game system, therefore reducing the perceived ease of use. vii TABLE OF CONTENTS STUDENT’S DECLARATION .............................................................................................. iii COPYRIGHT ........................................................................................................................... iv ACKNOWLEDGEMENTS ..................................................................................................... v ABSTRACT .............................................................................................................................. vi TABLE OF CONTENTS ...................................................................................................... viii LIST OF TABLES .................................................................................................................... x LIST OF FIGURES ................................................................................................................. xi LIST OF ABBREVIATIONS AND ACRONYMS .............................................................. xii CHAPTER ONE ....................................................................................................................... 1 1.0 INTRODUCTION......................................................................................................... 1 1.1 Background of the Study .......................................................................................... 1 1.2 Statement of the Problem ......................................................................................... 5 1.3 Purpose of Study....................................................................................................... 6 1.4 Research Questions................................................................................................... 6 1.5 Importance of the Study ........................................................................................... 7 1.6 Scope of the Study .................................................................................................... 7 1.7 Definitions of Terms ................................................................................................. 7 1.8 Chapter Summary ..................................................................................................... 9 CHAPTER TWO .................................................................................................................... 10 2.0 LITERATURE REVIEW .......................................................................................... 10 2.1 Introduction ............................................................................................................ 10 2.2 Effectiveness of Business Simulation Games in Enhancing Learning ................... 10 2.3 Perception towards the use of Business Simulation Games ................................... 14 2.4 Factors Affecting The Adoption of Business Simulation Games in Enhancing Learning ................................................................................................................................ 18 2.5 Chapter Summary ................................................................................................... 22 CHAPTER THREE ................................................................................................................ 24 3.0 RESEARCH METHODOLOGY ........................................................................... 24 3.1 Introduction ............................................................................................................ 24 3.2 Research Design ..................................................................................................... 24 3.3 Population and Sampling Design ........................................................................... 25 3.4 Data Collection Methods ........................................................................................ 26 3.5 Research Procedures ............................................................................................... 27 viii 3.6 Data Analysis Methods........................................................................................... 28 CHAPTER FOUR................................................................................................................... 31 4.0 RESULTS AND FINDINGS ...................................................................................... 31 4.1 Introduction ............................................................................................................ 31 4.3 Effectiveness of Business Simulation Games ........................................................ 34 4.4 Perception Towards the use of Business Simulation Games .................................. 39 4.5 Factors affecting the adoption on the use of Business Simulation Games ............. 44 4.6 Correlation Analysis of the Dependent and the Independent Variables ................. 49 4.7 Chapter Summary ................................................................................................... 50 5.0 DISCUSSIONS, CONCLUSION AND RECOMMENDATIONS ......................... 52 5.1 Introduction ............................................................................................................ 52 5.2 Summary................................................................................................................. 52 5.3 Discussion............................................................................................................... 53 5.3.1 Effectiveness of Business Simulation Games ........................................................ 53 5.3.2 Perception towards the use of business simulation games ..................................... 55 5.4 Conclusion .............................................................................................................. 57 5.5 Recommendations .................................................................................................. 59 5.5.2 Recommendations for Further research .................................................................. 60 REFERENCES........................................................................................................................ 61 APPENDICES ......................................................................................................................... 67 APPENDIX I : INTRODUCTION LETTER ....................................................................... 67 APPENDIX II : QUESTIONNAIRE .................................................................................... 68 ix LIST OF TABLES Table 3.1 Data Analysis Framework ................................................................................. 29 Table 4.1 : Employment Status .......................................................................................... 33 Table 4.2 Area of Concentration........................................................................................ 33 Table 4.3 Effectiveness of Business Simulation Games .................................................... 34 Table 4.4 Clear Objectives of the Game ............................................................................ 36 Table 4.5 Simulation was Well Organized ........................................................................ 36 Table 4.6 Instructor was Well Organized .......................................................................... 36 Table 4.7 Instructor Communicated Well .......................................................................... 37 Table 4.8 Understood Role in Simulation.......................................................................... 37 Table 4.9 Integrate Learning from other Functional Area ................................................. 38 Table 4.10 Gained Top Management Perspective on Operations...................................... 38 Table 4.11 Gained Knowledge to Assist in Workplace ..................................................... 38 Table 4.12 Increased Confidence at Work ......................................................................... 39 Table 4.13 Learnt a Great Deal in the Simulated Experience............................................ 39 Table 4.14 : Perception Towards the use of Business Simulation Games ......................... 40 Table 4.15 CAPSIM business simulation game a worthwhile learning experience .......... 41 Table 4.16 CAPSIM Coverage of Topics Covered in Strategic Management .................. 41 Table 4.17 Simulation Program “Simulates” Real Business World .................................. 42 Table 4.18 Learnt More than in Previous Classes ............................................................. 42 Table 4.19 Realism in the Strategic Management Course ................................................. 42 Table 4.20: The Simulation Game Is More Exciting ......................................................... 43 Table 4.21 : Aspects of the simulation liked best .............................................................. 44 Table 4.22 : Overall Evaluation of CAPSIM ..................................................................... 44 Table 4.23 Factors Affecting the Adoption of Business Simulation Games ..................... 45 Table 4.24 Complete Studies Faster .................................................................................. 46 Table 4.25 Increased Learning Efficiency ......................................................................... 46 Table 4.26 Improved Learning Performance ..................................................................... 46 Table 4.27 Improved Productivity ..................................................................................... 47 Table 4.28 Improved Job Performance .............................................................................. 47 Table 4.29 Easy to Use ...................................................................................................... 48 x LIST OF FIGURES Figure 2.1 Kolb (1984) Model of Experiential Learning................................................... 12 Figure 2.2 Technology Acceptance Model ........................................................................ 21 Figure 4.1 Response rate for questionnaire participants .................................................... 32 Figure 4.2 Age Distribution ............................................................................................... 32 xi LIST OF ABBREVIATIONS AND ACRONYMS AACSB: Association of Advanced Collegiate Schools of Business CAPSIM: Capstone Simulation MBA: Master’s in Business Administration TAM: Technology Acceptance Model USIU: United States International University xii CHAPTER ONE 1.0 INTRODUCTION 1.1 Background of the Study According to Siewiorek (2012), developing high-level competencies among university students is a challenging task. Students are expected to develop a wide range of higher order thinking, problem solving and cognitive skills to be able to manage effectively in their future work places. The global economy is changing rapidly the ability to be skillful, flexible and adaptable is a requirement to be successful. However, the diverse methods and tools commonly used for teaching business skills at higher educational institutions are insufficient to cope with the complexity of organizations and unstable conditions of today’s market (Achtenhagen et al., 1993; Baker & O’Neil, 2002; Lehtinen, 2002; Machuca, 2000). Consequently, the way of educating students must change in order to fulfill the requirements and new methodologies of teaching leadership and other practical skills should be implemented. One technique of grooming students to better cope with business world complexity is to include computer simulation games into their lectures. The simulation gaming environments could help students practice leading, managing unpredictable situations and solving problems. Previous studies have also indicated that for the purpose of learning, ‘real life’ company operations complex learning environments are required (Burgess, 1995; Sterman, 2001; Zack, 1998). Simulation, as defined by Ehrlich and Reynolds (2002), is a representation or imitation of reality. An instructional strategy used to teach problem solving, procedures, or operations by immersing learners in situations resembling reality. The learners actions can be analyzed, feedback about specific errors provided, and performance can be scored. Simulations provide safe environments for users to practice real-world skills. They can be especially important situations where real errors would be too dangerous or too expensive. Simulation games serve many functions, such as tutoring, amusing, helping to explore new skills, promoting self-esteem, 1 practicing existing skills, drilling existing skills, automatizing or seeking to change an attitude (Dempsey, Rasmussen & Lucassen, 1996). Business simulation games, according to MBA Briefs (2013), specifically, are a specialized form of simulation focused on operations and management of a real-world business process, system, organization, competing firms or an entire supply chain over time. The games are used mainly for educational and team development purposes, typically practicing strategic, financial, market or operational analysis, logical and creative thinking, and decision making while at the same time working on personal skills such as collaborating, negotiating, team building, management and leadership development. The origin and history of business simulation games can be traced back to 1955. During that year, the Rand Corporation, a United States of America based company supplying the United States Air Force with logistical support created a simulation game called Monoplogs, which focused on the United States of America Air Force logistics (Jackson, 1959). The simulation game required participants to perform as inventory managers in a simulated Air Force supply system, thus providing decision making experience without the risks associated with the consequences of a wrong decision. The United States Air Force continuously used this simulation exercise for some years later due to its success. Fariah (1987), notes that the success of Monoplogs, spurred the early growth of business simulation games. The initial business simulation game that was practical and successful was Top Management Decision Simulation, created by the American Management Association in 1956. The game was mainly used in numerous management development seminars attended by academicians and business managers. Thereafter, a consulting firm, McKinsey and Company, developed the Business Management Game in 1957 for use in its management seminars (Adlinger, 1958). The University of Washington became the first university classroom user of a business game when a simulation developed by Schreiber was used in a business policy course (Watson, 1981). After the initial introduction of the business simulation in 1957, into the university classroom, Watson (1957) notes that many universities followed the example, 2 as surveys of Association to Advanced Collegiate Schools of Business (AACSB) would indicate. Dale and Klassen (1962) conducted a survey of 107 AACSB member schools and found two of the respondent schools were using business games in at least one course. In 1975, Roberts and Strauss (1975) resurveyed the same schools that Dale and Claussen had surveyed in 1962 and established that business simulation game usage had increased to 94.5% from 71.1%. Since then, there has been a steady increase in the number, sophistication, and adoption of simulation games (Fariah, 2009) Kulkarni and Sivaraman (2013) highlight business simulations can be very effective in introducing business concepts, enhancing decision making skills and appreciation of cross-functional nature of business. It is powerful in highlighting the essence of management and representation of business as interplay of functions. The more common objective of business simulations is to give learners hands on experience in formulating and implementing their strategy (Faria, Hutchinson, Wellington, & Gold, 2009). In most business simulations, learners are involved in managing a firm in a competitive environment. They compete with other firms within an industry. The firm produces, markets goods and manages its resources to achieve profitable growth. Each competing team is required to run the firm over defined decision cycles. Participants make decisions mainly in all functional areas such as research and development, marketing, manufacturing, human resources and finance. Decisions are based on desired objectives, expected outcomes and analysis of performance which in turn is linked to market behavior and their goals. Operating a virtual business based on decision cycles helps the learners to understand the importance of different functions and their impact on each other. Kulkarni and Sivaraman (2013) point out that taking a decision on a repeated basis by looking at all facets of business, backed by analysis helps improve decision making skills. Business Simulation games are numerous, and an example of such is the Capsim business simulation. Management Solutions Incorporated, MSI, (Capsim, 2013) outlines the features of their product as, a web based simulation tool that brings together all of the primary functions of business operation. These functions are; production, forecasting, marketing, pricing, finance, human resources and labor negotiations, distribution and 3 trend analysis, and combines it within a competitive framework that teaches strategic thinking and strategy as competitive movement. According to Management Solutions Incorporated, MSI, (Capsim, 2013), the simulation exercise involves students teaming up with fellow colleagues, to manage business performance of a firm in a challenging and innovative strategic management simulation. As described by MSI, (Capsim, 2013), each team manages and analyses its own 100 million dollar Capstone Company and develops and implements strategic concepts. The management team makes decisions about various aspects of an assigned company’s management task for a given period of “simulated time”. The simulation is played over several simulated “years” to maximize the firm’s objectives. As described by MSI, (Capsim, 2013), the simulation game consists of two components. First is the website, whereby players download starting market conditions, communicate with team and class members, and upload corporate decisions. The second component comprises of decision support software, which is operated using Microsoft Excel. Using this software, players determine product positioning, price, sales and promotion budgets, production levels and financing requirements. The business simulation game offers methods for groups to organize by function, by product, by segment, or as board of directors. Capsim simulation has been integrated into the United States International University Masters in Business Administration program. The course, BUS 6020, Introduction to Strategic Management, according to USIU (2012), primarily combines normal coursework with the business simulation game. The primary objective of this graduate course is to provide an overview of the economic, cultural, psychological, sociological, technological, and political aspects of the global environments confronting environment serving organizations; the concept of environmental turbulence; the nature of strategic and operational work formulation of mission, goals, objectives, strategy; environment serving organization strategic aggressiveness and capability at different turbulence levels; and strategic diagnosis. 4 According to Lewa (2005), the simulation game was introduced in April 2004 through the initiative of Dr. Peter Lewa, now a Professor of strategic management at the United States International University. The primary objective of introducing the game within the course was to enable students to incorporate their knowledge of various business functions learnt while undertaking their course work. Combined with the knowledge acquired from the course program, students would then develop and implement a comprehensive strategic plan, which would involve application of their analytical and decision making skills in the business simulation game environment. 1.2 Statement of the Problem According to Siewiorek (2012), Educators consider simulation games as fruitful tools to use in their classrooms. There is also a growing body of literature discussing the potential application of computer games to learning (Gredler, 2003; Prensky, 2001; Rieber, 1996). For example, Ruben (1999) states that teaching with games addresses many of the limitations of conventional teaching. Additionally, he identifies games’ value in addressing cognitive and affective learning issues and in facilitating interactivity, collaboration, peer learning and active learning. However, in spite of a growing body of literature highlighting the educational potential of computer games, the evidence to support this assumption is still limited and contradictory, particularly regarding the effectiveness of games for concrete educational purposes (Kirriemuir & McFarlane, 2004; Mitchell, & Savill­Smith, 2000; Vogel et al., 2006) such as teaching management and leadership. Many game studies are based on case study reports or random investigations or observations and more studies on the use of computer games to teach practical skills need to be conducted. Therefore, it is essential to examine whether the simulation gaming environments could provide a way to teach students’ practical skills needed in modern careers that require high level competencies and skills in a global economy. A severe problem then, which exists in business education as well as in other subject areas, is the difficulty in applying theoretical subject knowledge in real life settings, and inabilities to handle complex and ill-defined problems (Bransford, Goldman & Vye, 1991). Bransford et al. (1991) further adds that the traditional forms of instructions such 5 as lectures, are often found to produce rudimentary knowledge which cannot be applied in complex situations. In such impoverished environments, learning becomes the memorization of seemingly abstract, self-contained entities, not useful tools for understanding and interacting with the world (Barab & Duffy 2000). Because of the limitations of the traditional learning methods, United States International University introduced Capsim business simulation technology in 2004 to enhance learning in their MBA program to compensate for the inadequacy that traditional learning form provided, as well as assisting learners in applying theoretical subject knowledge in real life business setting and complex situations. Since then, the effectiveness of this method has not been assessed. This study seeks to determine the impact of Capsim as a business simulation technology in enhancing learning in university post-graduate strategic management program. 1.3 Purpose of Study The purpose of this study was to examine whether business simulation games are effective at enhancing learning in graduate introduction to strategic management program course. 1.4 Research Questions The following research questions based on the objectives were formulated: 1.4.1 Is the business Simulation Game, CAPSIM, effective as a learning tool in enhancing learning in graduate class for strategic management program in United States International University? 1.4.2 What are the students’ perceptions towards CAPSIM as learning tool in enhancing learning in graduate class for strategic management program in United States International University? 6 1.4.3 What are the factors affecting the adoption of CAPSIM as learning tool in enhancing learning in graduate class for strategic management program in United States International University? 1.5 Importance of the Study Capstone business simulation course as part of the United States International University strategic management graduate program would provide important benefits to both students and employers of business graduates. By exposing students to a virtual business setting and tailoring the program to individual student goals, the graduate program objectives will have been fulfilled, and shortcomings of business programs as perceived by employers will have been met. 1.6 Scope of the Study To establish the impact of business simulation games in enhancing learning in introduction to strategic management course, the study was limited to students registered to attend the introduction to strategic management, BUS 6020, course within the United States International University, a private university located in Nairobi, Kenya. The sample of this study is a representative of the population of all students registered for Master in Business Administration program. The study was conducted for a duration of 3 weeks between June and July 2013 time period, during which students attending the Introduction to Strategic management will be registered to attend the course, and will be using the CAPSIM business simulation game during the normal course work activities. 1.7 Definitions of Terms 1.7.1 Simulation Simulation is defined by Ehrlich and Reynolds (2002) as a representation or imitation of reality. An instructional strategy used to teach problem solving, procedures, or operations by immersing learners in situations resembling reality. 7 1.7.2 CAPSIM Business Simulation This is a web based simulation tool that brings together all the primary functions of business operations, namely, production, forecasting, marketing, pricing, finance, human resources and labor negotiations, distribution and trend analysis, and combines it within a competitive framework that teaches strategic thinking and strategy as competitive movement (Management Solutions Incorporation, MSI, 2013). 1.7.3 AACSB Association to Advanced Collegiate Schools of Business. Accrediting agency founded in 1916 for Business schools worldwide, AACSB Website (2009). 1.7.4 Pedagogy Pedagogy is the act of teaching together with its attendant discourse of educational theories, values, evidence and justifications. It is what one needs to know, and the skills one needs to command, in order to make and justify the many different kinds of decision of which teaching is constituted. 1.7.5 Game According to Hays, 2005, a game is an artificially constructed, competitive activity with a specific goal, a set of rules and constraints that is located in specific context. 8 1.8 Chapter Summary This chapter presents the background information, problem statement, purpose of the study, its scope and importance of the study. It discusses the concept of a business simulation game, an instructional software technology used as a learning aid to teach problem solving, procedures, or operations by immersing learners in situations resembling reality. The main objective of this study was to establish the impact business simulation games had in enhancing learning in strategic management course using United States International University as a case study institution. Chapter two attempts to determine the effectiveness of business simulation game, CAPSIM, as a learning tool in enhancing learning in graduate class for strategic management program in United States International University in the first section of the literature review. The second section of the literature review seeks to determine the students’ perceptions towards CAPSIM as learning tool while the third section seeks to determine factors affecting the adoption of CAPSIM as learning tool. The chapter three highlights the research methodology and procedures the researcher will adopt in conducting the study in order to answer the research questions raised in the first chapter. The chapter was organized in the following structure: the research design, population and sample, data collection methods, sampling design and sample size, research procedures and data analysis methods. Chapter four discusses how the data will be analyzed and presented. Chapter five discusses the findings as well as provides the conclusion and recommendations of the study. 9 CHAPTER TWO 2.0 LITERATURE REVIEW 2.1 Introduction The purpose of this chapter is to examine literature by other academicians on the impact business simulation games have in enhancing learning in the strategic management programs. The first section explores the effectiveness business simulation game have in enhancing learning. The second section of the literature review seeks to determine the students’ perceptions towards business simulation games while the third section seeks to determine factors affecting the adoption of business simulation games as a learning tool. 2.2 Effectiveness of Business Simulation Games in Enhancing Learning The management profession is a field in which individuals must be able to apply their conceptual knowledge to current and upcoming challenges. Thus, the educational challenge is to avail the knowledge and also understand how to apply that information. In 1997, Mowday conducted a research and observed that the faculty leadership of Association to Advanced Collegiate Schools of Business, AACSB, had expressed their concern that the gap between practice and teaching of business courses had widened. The faculty taskforce recommended the need to improve pedagogy and the learning environment. Learning reflects a very important link between program content and pedagogical methods on the one hand, and a better prepared workforce on the other (Gopinath & Sawyer, 2001). An understanding on how learning takes place and whether it enables the learner to acquire knowledge is very important especially in the case of professional courses that require certification, such as the case of business managers (Watson, 1991). The rapid development and spread of computing technology, personal computer-based simulations have considerable potential as effective means of achieving educational objectives (Larreche, 1987). 10 2.2.1 Nature of Learning What is learning? Knowles’ (1990) reviewed the work of prominent interpreters of learning theories. This led him to conclude that “learning was an elusive phenomenon”. Learning can be defined as “an adaptive change to inputs from the environment” (Witteman, 1997). Harris and Schwahn (1991) provide three ways of viewing learning. Firstly, as a product, which emphasizes the end result of the learning experience. Secondly, as a process, which emphasizes what happens during the course of learning experience in attaining the given product or outcomes. Finally, as a function, which emphasizes certain critical aspects of learning, such as motivation, retention, and transfer, and make behavioral changes in human learning possible. Bloom’s early classification of educational objectives identified a hierarchy of outcomes in order to plan learning experiences. The educational objectives identified by Bloom (1956) range from the basic knowledge to higher level critical thinking skills. In the low end of the hierarchy, the basic objective is obtaining knowledge - which involves memorizing facts, terms and concepts. Above the knowledge basic objective in the Bloom's hierarchy are the following: Comprehension, which entails elaborating the content, Application which involves applying a concept to solve a problem, Analysis which includes the division of content into component parts, Synthesis which entails developing new content and evaluation which entails the production of new content. Perry (1970) examined how students make meanings from their own cognitive structures. The stages in this model reflect a student’s movement from naïveté to maturity in a journey of learning. At the beginning, the students are dualists, viewing knowledge as objective, black and white (Kolb, 1984). Thereafter, students recognize that there are alternative explanations for several issues (Perry, 1970). The student then moves to the next level of relativism where beliefs justified by argument constitute knowledge (Kolb, 1984). The cognitive insights of the various models suggests that first, there should be clarity about the set of learning objectives that are intended (Gopinath & Sawyer, 1991). The main aim of business education, especially at post graduate level is producing managers who can function effectively in complex business environments (McKenna, 11 1991). Thus, business education requires learning experiences that lead to higher levels of learning (Kolb, 1984). Learning through experience, also known as experiential learning, is based on the assumption that knowledge is acquired through transformation brought about by an experience (Ricardo, 2001). The particular experience is converted into an abstract concept that is tested through new experiences. Kolb’s cycle of experiential learning (Kolb, 1984) refines the work of other previous authors exploring the same field. These are authors such as Lwein (1951), Dewey (1938) and Piaget (1978). Kolb (1984) focuses on the idea that experiential learning exists as a unique form of learning, distinguished by the central role that experience plays in the learning process. Kolb (1984) proposed the concept of experiential learning as a process where concepts are derived from and continuously modified through experience. By adding experience to the cognitive process, experiential learning shows the iterative nature enables the higher levels of learning to be reached. Kolb (1984) identifies four abilities in learners (as highlighted in Figure 2.1). CONCRETE EXPERIENCE (Doing or having an experience) ACTIVE EXPERIMENTATION (Planning or trying out what you have learnt) REFLECTIVE OBSERVATION (Reviewing or reflecting on the experience) ABSTRACT CONCEPTUALIZATION (Concluding or learning from the experience) Figure 2.1 Kolb (1984) Model of Experiential Learning Source: Kolb (1984) First, a learner through concrete experience acquires information by involving himself or herself fully in the new experience. In simulation gaming, participants experience the consequences of their activities either by the feedback from teammates or from the simulation model. Next, a stage of reflective observation occurs through examining and 12 organizing the information - Participants evaluate during brief meeting their actions, strategies, and decisions in the last cycle. In the third stage, abstract conceptualization occurs during which the learner develops concepts to integrate the observations participants gain an understanding of what had happened and elaborate new strategies. In the final stage of active experimentation, the learner uses generalizations from previous stage as a guide in a more complex situation and the process repeats – participants’ experimentation with new ways of decision-making. These four adaptive learning modes stress that learning requires both a perception of experience and its transformation into action. Previous research into the use of business simulation games as educational tools has provided evidence that they add value to learning in the classroom under different conditions and in various courses (Keys & Wolfe, 1990). In particular, studies that have examined learning effects have used either game performance scores or performance in an examination as a measure (Keys & Wolfe, 1990). Measures such as return on equity, or a composite that takes into account a range of indices such as sales revenues, return on assets, and market share are conveniently generated by the system and may be seen as objective measures (Gopinath & Sawyer, 1999). Moreover, financial performance is commonly accepted as a key measure of success of a firm’s strategy in the real world. However, a high level of performance does not necessarily mean that the participants would have learned about strategy (Gopinath & Sawyer, 1999). Moreover, a high level of performance does not necessarily mean that the participants would have learnt about strategy, according to Morest & Koball (2002). Despite a growing body of literature highlighting the educational potential of computer games, the evidence to support use of business simulation games in enhancing learning is still limited and contradictory, particularly regarding the effectiveness of games for concrete educational purposes (Kirriemuir & McFarlane, 2004; Mitchell, & Savill­Smith, 2000; Vogel et al., 2006). 13 2.3 Perception towards the use of Business Simulation Games 2.3.1 Students’ Perception towards Business Simulation Games Various researchers who conducted research into the perception student had towards the value gained from business simulation games validated various outcomes. Wolfe and Roberts (1993), Gopinath and Sawyer, 1999, Jennings, 2001 and Zantow, Knowlton and Sharp 2005, identified that students perceived business simulation games as a valid representation of real world issues facing managers which included analysis of multiple variables, improvement of skills in strategy formulation, combination of diverse marketing concepts and techniques, dynamic financial concepts, problem-solving techniques, communication and teamwork. In other studies that have focused on the value business simulation games have in improving student outcomes included Faria (2001) established that students engaged in the use of simulation games performed better on average in comparison to those who used only traditional teaching methods including lectures, case studies and readings. Drea, Tripp and Stuenkel (2005) also established those students who participated in a marketing simulation game experienced positive effect on their overall learning. Cook and Swift (2006) were also able to establish that business simulation games improved problem solving and analytical skills, aided in learning business concepts and fundamentals and application of knowledge. Livingstone and Lynch, (2002) and Laverie, 2006), researchers in business simulation games concur that active learning techniques need to be complemented with traditional methods such as lectures and readings. Herz & Merz (1998), Hatcher & Bringle (2000), Young (2002), and Peters and Vissers (2004) demonstrate from their findings that for the successful implementation of the business simulation gaming in an educational environment needs to be combined with prior lectures and readings to provide students with the essential basic knowledge, alignment of learning outcomes with gaming objectives, review of post simulation exercises and assessment of tools utilized during and after the game. 14 The perceived outcomes during the business simulation game sessions are essential in the learning environment. Different researchers point out the positive emotions students experience during the gaming sessions. Coleman (1966), Brenenstuhl (1975), Orbach (1979), Szafran & Mandolini, Bredemeier & Greenblat (1981) research findings on the benefits of simulation gaming in comparison to traditional modes of learning highlights the increased levels of student enjoyment and dedication during participation in gaming. Malik and Howard (1996) and Jennings (2001) demonstrated that students find simulation games to be mainly challenging and fun and that this enhances their learning. Gilgeous and D’Cruz (1996) observed that motivating participants during the gaming sessions is critical and additionally, games are better suited encouraging motivation. Certo and Newgren (1977) and King (1997), also identified that the effective use of business simulation games does provide a positive behavioral changes, such as improving a students' ability to be more organized, adopt to new situations and environments, team conflict resolution and effective work habits. Solomon (1993) also discovered that participation in business simulation games did increase self-awareness of the students, and this process enabled them to conduct self-assessments of their individual behavior while working as a team, during the gaming session. 2.3.2 Motivation to Learn Using Business Simulation Games Tao et al (2009) discovered that educational simulation games can increase the motivation to learn. Cheng et al. (2011) and Kebritchi et al (2010) specifically indicated that games increase the students’ internal motivation as well as their learning performances. Interestingly, Prensky (2003) and Gomez et al. (2010) pointed out that from the perspective of successful learning, motivation is an indispensable condition and that games just happen to provide such a condition. In their experiment, Schwabe and Goth (2005) and Huang et al. (2010) applied games in their learning activities, which not only increase the motivation of the students but also increase the opportunity for them to interact with each other. According to Liao, Wang (2011), though the decision to use business simulation games is made by the instructor, the students’ perception is equally important in promoting the inclusion of business simulation games. 15 In other studies, Anderson and Lawton (1992) found no significant relationship when they correlated the financial measure of performance on a simulation exercise with seven different measures to fit with Blooms hierarchy of learning objectives. Wolfe (1997) learning benefits were measured using true-false statements, performance on cases, or essay exams on course material. By examining fact mastery or principle mastery, the study reported that simulations produced significant gains as compared to alternate instructional methodologies. In general, all the aforementioned measures have viewed learning in terms of outcomes of a process, and have therefore measured the benefits through various tests (Wolfe, 1997). Players in a business simulation games are encouraged to develop a strategy and use it in their decision making. Mintzberg (1987) terms strategy as a pattern in a stream of actions. Strategy conceptualization lends itself to experimentation and refinement by allowing for decisions to be made on a wide set of variables with which to differentiate one’s product and services in the marketplace (Mintzberg, 1987). According to Mintzberg (1987), strategy formulation, that is, formulation and implementation, process is exhibited as a decision making process. Once a strategy is conceptualized, it is revealed and implemented through a series of decisions and actions. Following the process of experiential learning, the decisions made (experimentation) impact on the nature of strategy followed, that is, experience (Gopnath & Sawyer, 1999). According to Gopnath & Sawyer (1999), reflecting on the strategy, causes of performance, and the context of group behavior leads to a better understanding about the strategy-action link - conceptualization. According to Regional Technology Strategies (2002), learning through business simulation games helps business students develop skills that will enable them to be successful in their workplace. Students adopt roles characteristic of the business industry and carry out projects that stimulate situations facing realistic, but fictitious, enterprise. The business games are intended to “represent the complexities and uncertainties of the real business world”. 16 2.3.3 Usage Satisfaction with Business Simulation Games A survey by Morrest and Koball (2002) on student and faculty experiences with learning through simulated tools, evaluated the effectiveness and user satisfaction of a business simulation used in teaching. The survey was conducted across eight community colleges located in the United States of America. It was administered to faculty and students. The simulation games offered in those eight different colleges consisted of different scenarios that presented students with real life business situations. Examples of the situations include strategic planning and business plan analysis, market analysis, growth and profitability. Data collected from the Morrest and Koball (2002) evaluation was guided by three main questions. The questions and their findings are outlined below. The first question examined the instructors’ satisfaction with the simulation. It also examined aspects of the simulation that related to high or low levels of satisfaction. Morrest and Koball (2002) found the faculty members who implemented the business simulation programs reported an overall high level of satisfaction with simulation. The faculty members felt simulations aligned well with their courses and provided an important innovative method of lending realism to the curriculum. Faculty perceived the simulations effectively offered students meaningful opportunities for applied learning. The second question examined the extent of students’ satisfaction with business simulation games used in instruction. It explored aspects of the simulation that related to high or low levels of satisfaction. Morrest and Koball (2002) found out that, overall, students responded positively to the simulations. Most students agreed or strongly agreed with positive statements about how simulations were organized and implemented. An overwhelming majority said they would take a simulation game again during their course work. The final question addressed the impact participating in the simulation had on the development of student’ skills. Morrest and Koball (2002) findings were that the simulation helped students understand what it was like to work in a “real life” business organization. Projects were more exciting, as opposed to not-so-exciting theory models.” Students also responded they liked working in teams. Students also mentioned that they 17 enjoyed being more active in the learning process, having “creative control”, “problem solving”, and “the critical thinking of different solutions”. This suggested that the business simulations were effective in providing the students with challenging opportunities for experiential learning. The findings of Morrest and Koball (2002) study have implications on the use of Capsim simulation at the United States International University campus. They suggest that if the attitudes of faculty and students are examined, their experiences and level of satisfaction on the use of Capsim business simulation would reflect the level of effectiveness as a teaching tool. Overall, the responses in the Morrest and Koball (2002) were generally positive and implied that business simulation games generally have a direct (positive) learning effect on students in relation to situations. Other researchers have also found that there are positive benefits of using business simulation games (Jennings, 2002; Thompson, 1997; Lane, 1995). 2.4 Factors Affecting the Adoption of Business Simulation Games in Enhancing Learning 2.4.1 Evolution of Business Simulation Games The use of business simulation games in learning can be traced back to 1957 (Watson, 1981). This was when the University of Washington in the United States of America, became the first university classroom user of a business game after a simulation developed by Schreiber was used in a business policy course (Watson, 1981). As discovered by Kibbee, Craft & Nanus, 1961, it was estimated that by 1961 over 100 business games were in existence and had been played by more than 30,000 business executives. The business game handbook published in 1969 (Graham and Gray) listed nearly 200 games, while the most recent edition of “The Guide to Simulations/Games for education and training (Horn and Cleaves, 1980)” provides descriptions of 228 business simulation games. Smith (2007) highlights the evolvement and gradual development of business simulation games as creative and stimulating decision-making techniques for advancing and 18 developing problem solving skills. The advent of the devices, computers and associated information and communication technologies indicate that the development of virtual environments to simulate real-world cases, scenarios and situations has advanced to a level where the concept of “simulating” complex decision situations, is now becoming a common phenomenon. Though such technologies were initially restricted to research and development, then the military, and aviation sector, the pace of the technologies has thus brought the immersive world into the living room (Smith, 2006). Over time academic instructors and trainer-facilitators have been gradually adopting the technological issues as informational and communication systems have advanced, and business simulation games in particular have kept in step with these advances – from dedicated systems, to discs, to client-server to the current internet based service delivery mechanisms (Fritzsche and Burns, 2001; Keys and Wolfe, 1990). It has been unanimously agreed that we are living in the information age, taking part in the information society (Bates, 2001). What has rapidly brought about these two emerging concepts possible into the foreground is technology over the past 50 years (Molenda & Sullivan, 2003). During this period, technology has been both the generator and the transmitter of information with an increasingly faster speed and wider audience. Technology now dominates almost all aspects of our lives, permeating into our normal daily life. The field of education is not an exception of the permeation of technology, according to Gibson, 2007. High expectations regarding the revolutionary impacts of technology in educational environments has not contributed significantly (Molenda & Sullivan, 2003; Russel, 2003). It is argued that the relative ineffectiveness of instructional technology so far has been caused by the application of the same old methods in new educational media-"New wine was poured, but only into old bottles" (Cohen & Ball, 1990). Current models and techniques of instructional technology are insufficient to meet the consequences of the paradigm shift from industrial age to information age (Bates, 2001; Regeluth, 1996, 1999). Consequently, instructional developers are faced with the challenge of forcing learning situations fit a formal model rather than selecting an appropriate model to fit needs of varying learning situations (Gustafson & Branch, 1997). 19 One of the possible novelties in instructional methods is the use of games as noted by Gibson, 2007. Young children, by nature, begin to learn through games and playing from their earliest years (Reiber, 1996). However, as they grow up, their play and games are being replaced by formal education. History of games can be traced back to over a thousand years ago (Dempsey, Lucassen, Haynes & Casey, 1998), whereby it was evident that games and dramatic performances as representations of real life were effective as teaching tools. In our modern day, and with new technological advancements, traditional games have been replaced by electronic games and representations have been transformed into role playing in simulating realistic business environments. The business environment is becoming increasingly complex (Ricardo, 2004). This complexity has been driven by the advent of globalization. Globalization has resulted in the eradication of borders and geographical boundaries as businesses operate in various continents. This expansion has been driven by technologies such as the evolution of the internet, information, communication technology, interactive software and emergence if systems thinking (Ricardo, 2004). This technology has brought about the need for training models in educational institutions that are able to disseminate knowledge and skills needed in such environments. 2.4.2 Technology Acceptance Model (TAM) In an effort to understand how human beings adopt and use technology, especially in a business environment becoming increasingly complex, Davies, 1986 proposed the Technology Acceptance Model (TAM). According to Davis, 1986, the Technology Acceptance Model is an Information Systems theory that proposes when a user or users are presented with a new technology, a number of factors influence their decision about how and when they will use it. This model, according to Lule, 2012, the theory was designed to predict user's acceptance of Information Technology and usage in an organizational context. The Technology Acceptance Model focuses primarily on the attitude explanations of intention to use a specific technology or service. Lule, 2012, further emphasizes that, the TAM theory has now become a widely applied model for user acceptance, usage and adoption of technology. The Technology Acceptance Model 20 theory was developed to explain computer-usage behavior and factors associated with acceptance of technology. It has been used to test the acceptance of various technologies or software used in teaching and/or learning within a student context (Shroff, Deneen, & Ng, 2011). Similar views on the validity of simulation games based learning have been demonstrated in many studies (Amoako-Gyampah & Salam, 2004; Hong, Hwang, Hsu, Wong, and Chen 2011; Lederer, Maupin, Sena, and Zhuang 2000). The theory can be applied to explore the influence of external factors such as characteristics of the system design, computer self-efficacy, and system interaction on users' internal beliefs, attitudes, and intentions as well as on technology use (Davis, 1986). The theory, as proposed by Davies, 1986, is determined primarily by two factors, namely, Perceived Usefulness (PU) and Perceived Ease of Use (PEOU). David, 1989 defines Perceived Usefulness as the degree to which a person believes that using a particular system would enhance his or her job performance. This is adopted from the explanation of the word - useful : "capable of being used advantageously". Within the framework of an organization context, people are generally reinforced for good performance by raises, promotions, bonuses and other rewards (Pfeffer, 1982; Schein, 1980; Vroom, 1964). Additionally, David 1989, further defines the Perceived Ease of Use as "the degree to which the prospective user expects the target system to be free of effort" (Davis et al., 1989) Figure 2.2 Technology Acceptance Model Source: Davis, et al. (1989) Since Davis' (1986) introduction of the model, many studies have been conducted using it in a variety of information technology usage settings, testing its appropriateness and modifying it in different contexts. Past research on the TAM has largely focused on 21 personal computer usage or relatively simple software applications such as email, word processing programs, spreadsheet software, and the Windows operating system (e.g., Chau, 1996; Davis, 1993; Davis et al., 1989; Doll, Hendrickson, & Deng, 1998; Mathieson, 1991). Recently, in line with the development of the Internet and Internetbased technologies, applications of the TAM have been made in the areas of organizational contexts (e.g., Hu, Chau, Sheng, & Tam, 1999; Igbaria, Zinatelli, Cragg, & Cavaye, 1997; Venkatsh & Davis, 1996), e-commerce (e.g., Jiang, Hsu, & Klein, 2000), telemedicine (e.g., Chau & Hu, 2002; Karahanna, Straub, & Chervany, 1999), and digital library systems (e.g., Davies, 1997; Thong, Hong, & Tam, 2002). Student perceptions of simulation usefulness can be significantly linked to a variety of factors in a business game. Bourgonjon, Valcke and Soetaert (2009) established that that the determinants of perceived usefulness in learning outcomes while using business simulation games can be categorized into four primary areas, namely, course structure, parameters of the game, student characteristics, and game effort and performance. Amongst these categories, course structure and parameters of the game are directly managed and controlled by an instructor. Student characteristics, game effort and performance are normally within the scope of students while engaging in the simulation games. Bourgonjon, Valcke and Soetaert (2009) study indicates that students perceive greater simulation benefits as useful if the simulation is explicitly integrated into course content and a relatively high weight is placed on the simulation in determining final course grades. In addition, the simulations were generally well accepted and rated above equal to other teaching methodologies, such as lectures, case studies. 2.5 Chapter Summary This chapter presents findings and articles written by various researchers on how business simulation games impact on learning. The impact of the business simulation games in enhancing learning is determined by how effective the games are, how students perceive the usage and factors affecting the adoption of the games. 22 In the subsequent chapter, the research methodology section describes the methods and procedures that were used to carry out the study. The study was based on the effectiveness and integration of CAPSIM business simulation game, how students using the game perceived it and the various factors that affected the adoption process. 23 CHAPTER THREE 3.0 RESEARCH METHODOLOGY 3.1 Introduction This chapter presents the research methodology adopted in the study. The chapter specifies the design, methods and procedures that were used when conducting this research. It was used to guide the implementation of the research study. The design serves to ensure the data collected addressed the research questions and more importantly fulfilled the informational requirements of this research. 3.2 Research Design Kothari (2010) defines research design as a conceptual structure in which research is conducted. It forms the plan for the collection, measurement and analysis of data, which includes the outline of the research to the analysis of the data collected. The intended purpose of a research design therefore is to identify the research method chosen to determine information required. In order to identify the research design to determine the impact of business simulation games technology in enhancing learning in Strategic Management program, the researcher used the descriptive design method. The descriptive design was chosen because the process is non-experimental and entails gathering of information without altering or manipulating the environment, circumstances or experience of the participants. Furthermore, the descriptive study was aimed at gathering data involving participants in a cross-sectional study method where the participants will be observed at a single point in time. Moser and Russo (2009) identify cross-sectional study as a method that allows researchers to compare many different variables at the same time, with little or no additional cost in comparison to longitudinal study which extend beyond a single moment in time. Thus, in this case, the study sought to collect, measure and analyze the role of business simulation games and the perceived value by the participants of CAPSIM in their pursuit for Masters in business administration degree during the summer semester in 2013. 24 3.3 Population and Sampling Design 3.3.1 Population The target population was all graduate students of the Masters in Business Administration (MBA) program in the United States International University, Nairobi, Kenya, currently registered to attend the Introduction to Strategic Management, BUS 6220 classes during the summer semester 2013. According to the USIU registrar (2013), a total of 67 students were registered to attend the BUS 6020 classes. A total of 36 students were registered to attend BUS 6020A and 31 students were registered to attend BUS 6020B. This shall form the population of the study. 3.3.2 Sampling Design and Sample Size 3.3.2.1 Sampling Frame A sampling frame refers to a list of elements from which the sample is actually drawn and is closely related to the population (Cooper and Schindler, 2000). The sampling frame constituted of students who were in the process of undertaking their MBA program, and were registered and attending the BUS 6020 class. 3.3.2.2 Sampling Technique Non-probability sampling technique was used in this study. Marion (2013) defines nonprobability sampling technique as a method whereby the sample is selected in such a way that the chance of being selected of each unit within the population or universe is unknown. The selection of the subjects is primarily subjective, since the researcher relies on individual experience and judgment. Since there are no statistical methods that permit measurement of sampling error in such a technique, it is not appropriate to project the sample characteristics to the population. Furthermore, judgment or purposive sampling technique as a type of non-probability method was used by the researcher to select amongst the two sets of introduction to Strategic Management, BUS 6020 graduate classes conducted in summer semester 2013. The class selected was BUS 6020A offered every 25 Saturday of the semester from 1.30pm to 4.50pm. The selection was mainly based on the researcher’s prior knowledge of simulation exercise activity conducted by the lecturer. Borg, Gall and Gall (1996) state that sampling is the process of selecting members of a research sample from a defined population, usually with intent that the sample accurately represents that population. Gall, et al. (1996) formulated a general rule in quantitative research, that is, to use the largest sample possible. In determining the largest sample size possible, the researcher identified the census as a method to study the population. A total of 37 students who had registered to attend the BUS 6020A class comprised of the population. Therefore it was convenient and effective for the researcher to collectively carry out the study of the entire graduate student population participating in the simulation exercise and attending the BUS6020A class. 3.4 Data Collection Methods The study employed the use of administered questionnaires to collect primary data through interviews as research tools. Gall and Borg (1996) point out that, questionnaires are appropriate for studies since they collect information that is not directly observable as they inquire about feelings, motivations, attitudes, accomplishments as well as experiences of individuals. They further observe that questionnaires have the added advantage of being inexpensive and using less time as instruments of data collection. The survey questionnaire developed by the researcher for this study to probe the impact business simulation games had on students while undertaking their strategic management course contained open ended and closed questions. The instrument’s questions were organized in sections covering the main themes, considering transitions from one topic to the next. A pilot test was carried out to validate the content of the questions, flow of questions and the time taken to answer. For the main purpose of this research, the study will collect primary data and compare it with the available secondary data for the literature review. 26 The researcher conducted a pilot study to pretest the validity and reliability of data collected using the questionnaire. According to Berg and Gall (2006) validity is the degree by which the sample of test items represents the content the test is designed to measure. Content validity which is to be employed by this study is a measure of the degree to which data collected using a particular instrument represents a specific domain or content of a particular concept. Mugenda and Mugenda (1999) contend that the usual procedure in assessing the content validity of a measure is to use a professional or expert in a particular field. The content validity of the research instrument was evaluated through the actual administration of the pilot group. The study used both face and content validity to ascertain the validity of the questionnaires. Face validity is the degree to which a procedure appears effective in terms of its stated aims. As a check on face validity, survey items are sent to the pilot group to obtain suggestions for modification (Lacity and Jansen, 1994). Content validity draws an inference from test scores to a large domain of items similar to those on the test. According Cronbach (1971) Content validity is concerned with sample-population representativeness, that is, the knowledge and skills covered by the test items should be representative to the larger domain of knowledge and skills. 3.5 Research Procedures The questionnaire was developed and administered by the researcher. The questionnaire was pilot tested amongst 4 selected respondents and each respondent provided with a common and timely space to complete the survey questions. Feedback from the users was incorporated further to refine the data collection instrument. The samples that were picked for the pilot test were excluded from the substantive sample. A comprehensive letter detailing the purpose of the research was provided to the participants together with a questionnaire during the actual data collection session. The participants were assured of confidentiality and had an opportunity to give the positive and negative perspectives towards the use of Capsim, as a learning tool, in the BUS 6020 course. This method can 27 provide immediate feedback, allow clarification of questions by respondents and enhance the overall quality of data to be obtained. In this study, subjects from the BUS 6020A MBA program in United States International University were purposively selected to the study. The purpose of this study, as explained, included the nature of study, and the need to discover, interpret and revise facts. 3.6 Data Analysis Methods Data analysis involved reducing the accumulated data to a manageable size, developing summaries looking for patterns, and applying statistical techniques. Descriptive statistics was applied to measure and analyze data, which included measures of central tendency and dispersion using the weighted mean and standard deviation. The data was coded as follows: 1- Strongly Agree, 2- Agree, 3- Undecided, 4- Disagree and 5- Strongly Disagree. The decision point was put at 3.0. A mean rating of less than 3.0 show agreement with the statement. Pearson’s correlations analysis will be conducted at 95% confidence interval and 5% confidence level 2-tailed to determine the relationship between the variables in the overall evaluation of CAPSIM business simulation. If the relationship established is found to be positive, then this will indicate that there is a correlation between the factors and the overall evaluation of CAPSIM business simulation. In this study, all the questionnaires received were coded accordingly. The coded questionnaires were keyed into the computer software for data analysis. Spreadsheet analysis software, namely, SPSS, Statistical Package for Social Sciences (version 15), was used to analyze the data. The data analysis matrix is provided in the table below 28 Table 3.1 Data Analysis Framework Research questions Independent Dependent Variable Variable Effectiveness learning in graduate Frequencies, of CAPSIM class for strategic Percentages, learning tool in enhancing management Graphs learning in graduate class for program Weighted i) Is the business Simulation Game, CAPSIM, effective as a Test Statistic strategic management program mean and in United States International standard University? deviation, Correlation Analysis ii) What are the students’ Students’ learning in graduate Frequencies, perceptions towards perception class for strategic Percentages, CAPSIM as learning tool in management Graphs enhancing learning in program Weighted graduate class for strategic mean and management program in standard United States International deviation, University? Correlation Analysis iii) What are the factors affecting Factors Adoption of Frequencies, the adoption of CAPSIM as affecting CAPSIM as learning Percentages, learning tool in enhancing adoption tool Graphs learning in graduate class for Weighted strategic management mean and program in United States standard International University? deviation Correlation Analysis 29 3.7 Chapter Summary In this chapter, the research design, population and sample, data collection methods, research procedures and data analysis methods have been described. Purposive nonprobability sampling technique was used in the study. Primary data was collected using structured questionnaires that were administered by the researcher. The questions focus on attitudes, knowledge, skills, perceptions and suggestions, in response to the specific questions. The next chapter will be presenting the research results and findings. 30 CHAPTER FOUR 4.0 RESULTS AND FINDINGS 4.1 Introduction This chapter presents the results and findings of this research, obtained through the use of a questionnaire guided by the project’s research objectives. The main objective of this study was to establish the impact business simulation games have in enhancing learning in the strategic management programs. The study was guided by the following research questions: To determine the effectiveness of Business Simulation Game, CAPSIM, as a learning tool in enhancing learning in graduate class for strategic management program in United States International University, to determine the students’ perceptions towards CAPSIM as learning tool in enhancing learning in graduate class for strategic management program in United States International University and to determine factors affecting the adoption of CAPSIM as learning tool in enhancing learning in graduate class for strategic management program in United States International University. The chapter presents and analysis of the information designed to respond to the research questions as outlined in the study. There are four subsections presented on the questionnaire. The first is a general section which addresses the respondents’ demographic characteristics. Thereafter, the following sub sections addresses specific research questions. The findings will be presented sectionally starting with a demographic profile of the sample respondents followed by findings for each research question. 4.1.1 Response Rate The study targeted the 67 registered MBA students attending the Introduction to Strategic Management courses, BUS 6020 class at the United States International University, Nairobi Campus. The study applied judgmental sampling technique to select 37 respondents attending the BUS 6020 Introduction to Strategic Management course. The sampling frame included students who are registered to attend the Masters in Business Administration classes for the Summer Semester 2013. 36 questionnaires out of 37 were 31 completed and returned giving a response rate of 97.2% which is excellent in research. According to Mugenda and Mugenda, 2003, above 70% is an excellent response rate, 60% response rate is good while 30% or less is not viable. Response Rate 3% Respondents Non-Respondents 97% Figure 4.1 Response rate for questionnaire participants 4.2 Demographic Statistics 4.2.1 Age Distribution The respondents were requested to indicate their age bracket. The findings indicate that 8.3% are aged between 24 years and below, 19.4% aged between 25 and 30 years, 25% aged between 31 and 36 years, 38.9% aged between 37 and 41 years and 8.3% aged 42 years and above as indicated in Figure 4.2 below. 42 and Above 8% Age Distribution 37 - 41 39% 25 - 30 20% 31 - 36 25% 24 and Below 8% 24 and Below 25 - 30 31 - 36 37 - 41 42 and Above Figure 4.2 Age Distribution 32 4.2.2 Employment Status The respondents were asked to indicate their employment status. The findings indicate that 22.2% of the respondents were not employed, while 77.8% of the respondents were employed or self-employed. Out of the 77.8% of the respondents employed, 11.1% were self-employed, 36.1% were part time employed and 30.6% were full time employees. The findings indicate that cumulatively, 77.8% of the students were in employment as shown in Table 4.1 Table 4.1 : Employment Status Employment Status Full-Time Part Time Self Employed Not Employed 4.2.3 Frequency 11 13 4 8 Total 36 Percent (%) 30.6 36.1 11.1 22.2 100.0 Area of Concentration Out of the 36 respondents, 86.1% had declared their concentration area of study and 13.9 had not yet declared. Amongst the respondents who had declared their concentration area of study, 11.1% (4) had chosen to do Entrepreneurship, 22.2% (8) had declared Strategic Management, 11.1% (4) in Finance and 11.1% (4) in Information Technology Management, 8.3% (3) in Human Resource Management, 16.7% (6) in Marketing, 11.1% (4) in International Business and 8.3% (3) were undecided, as referred to Table 4.2 Table 4.2 Area of Concentration Concentration Entrepreneurship Strategic Management Finance Information Technology Management Human Resource Management Marketing International Business Undecided Frequency 4 8 4 4 3 6 4 3 Total 36 33 Percent (%) 11.1 22.2 11.1 11.1 8.3 16.7 11.1 8.3 100.0 4.2.4 Previous participation in a simulation game According to findings, all the respondents – 36 who answered the questionnaires stated they have never participated in a business simulation game before. Therefore no experience had been acquired prior to enrolment for the course for the respondents. 4.3 Effectiveness of Business Simulation Games One of the objectives of this study was to determine the effectiveness of Business Simulation Game, CAPSIM, as a learning tool in enhancing learning in graduate class for strategic management program in United States International University. The study sought to establish the impact business simulation games have in enhancing learning in the strategic management programs. The respondents were required to score the level of their agreement with various statements on effectiveness of business simulation games. The scale ranged from 1-5 where 1= strongly agree, 2= agree, 3= neutral, 4= disagree and 5= strongly disagree. The study computed means and standard deviation to help measure the respondents’ feedback about the respondents’ perception towards the use of business simulation games. The findings were in table 4.3 below. Table 4.3 Effectiveness of Business Simulation Games Questions Clear Objectives of the Game Well Organized Instructor Well Organized Instructor Communicated Well Understood Role in Simulation Exercise Integrate Learning from Functional Areas Gained top Management Perspective on Operations Gained knowledge to assist in work-place Increased Confidence at Work Learnt great deal in Simulated Enterprise Experience Mean 1.69 1.86 1.78 1.81 2.06 1.67 Std. Deviation Variance 0.856 0.733 0.899 0.809 1.017 1.035 0.980 0.961 1.068 1.140 0.676 0.457 1.56 0.652 0.425 1.64 1.86 0.683 0.990 0.466 0.980 1.83 0.910 0.829 When asked whether CAPSIM Business simulation game objectives were made clear at the start of the game, the respondents agreed to a mean of 1.69 and a standard deviation 34 of .856. On whether the CAPSIM business simulation was well organized, the respondents agreed to a mean of 1.86 and a standard deviation of .899. On whether CAPSIM Simulation Instructor was well organized, the respondents agreed to a mean of 1.78 and a standard deviation of 1.017. On whether the CAPSIM Simulation Instructor communicated well, the respondents agreed to a mean of 1.81 and a standard deviation of .980. On whether the participants understood their role in CAPSIM business simulation game, the respondents agreed to a mean of 2.06 and a standard deviation of 1.068. On whether CAPSIM business simulation game integrated learning from functional areas, the respondents agreed to a mean of 1.67 and a standard deviation of .676. On whether the participants in the CAPSIM business simulation game gained top management perspective on operations, the respondents agreed to a mean of 1.56 and a standard deviation of .652. On whether the participants in the CAPSIM business simulation game gained knowledge that could assist them in the workplace, the respondents agreed to a mean of 1.64 and a standard deviation of .683. On whether the participants in the CAPSIM business simulation game increased confidence at work, the respondents agreed to a mean of 1.86 and a standard deviation of .990. On whether the participants in the CAPSIM business simulation game learnt a great deal, the respondents agreed to a mean of 1.83 and a standard deviation of .910. 4.3.1 Objectives of the Simulation Game According to findings from respondents as illustrated in Table 4.4, 50% (18) indicated “strongly agree” and 36.1% (13) indicated “agree”, 8.3% (3) stated “neutral” and 5.56% (2) stated “disagree” to the statement that the objectives of the CAPSIM simulation game were made clear at the beginning of the course. Indeed the weighted mean for this statement is 1.7. The weighted mean shows that the respondents agreed with the statement that the objectives of the simulation game were made clear at the beginning of the course. 35 Table 4.4 Clear Objectives of the Game Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.3.2 Frequency 18 13 3 2 36 Percent (%) 50.0 36.1 8.3 5.6 100.0 Simulation Exercise was well Organized According to findings from respondents illustrated in Table 4.5, in examining how the respondents perceived the level organization of the entire simulation course, 44.4% (16) indicated “strongly agree” and 27.8% (10) stated “agree”, 25% (9) indicated they were “neutral” while 2.8% (1) indicated “disagree”. Table 4.5 Simulation was Well Organized Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.3.3 Frequency 16 10 9 1 36 Percent (%) 44.4 27.8 25.0 2.8 100.0 Instructor was Well Organized According to findings from respondents illustrated in Table 4.6, in examining the respondents how they perceived the Instructor was well organized, 50% (18) stated “strongly agree” and 33.3% (12) stated “agree”, 8.3% (3) stated neutral, 5.56% (2) stated “disagree” while 2.78% (1) indicated “strongly disagree”. Table 4.6 Instructor was Well Organized Strongly Agree Agree Neither Agree or Disagree Disagree Total Frequency 18 12 3 2 36 36 Percent (%) 50.0 33.3 8.3 5.6 100.0 4.3.4 Instructor Communicated Well According to findings from respondents illustrated in Table 4.7, another important factor in determining the effectiveness of the business simulation game was whether the instructor communicated well. The respondents’ findings indicate that 44.4% (16) stated “strongly agree” and 41.7% (15) stated “agree”, 5.6% (2) stated “neutral”, 5.56% (2) stated “disagree” and 2.78% (1) indicated “strongly disagree”. Table 4.7 Instructor Communicated Well Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.3.5 Frequency 16 15 2 2 36 Percent (%) 44.4 41.7 5.6 5.6 100.0 Understood Role in Simulation According to findings from respondents illustrated in Table 4.8, in examining how the respondents perceived the role of orientation in assisting them to understand their simulation exercise, 36.1% (13) indicated “strongly agree” and 36.1% (13) stated “agree”, 16.7% (6) stated “neutral”, 8.3% (3) stated “disagree” and 2.7% (1) respondent stated “strongly disagree”. Table 4.8 Understood Role in Simulation Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.3.6 Frequency 13 13 6 3 36 Percent (%) 36.1 36.1 16.7 8.3 100.0 Integrate Learning from other Functional Areas According to findings from respondents illustrated in Table 4.9 on whether the simulation game involved integrated learning from functional areas, 44.4% (16) indicated “strongly agree” and 44.4% (16) indicated “agree”, 11.1% (4) stated that they are neutral and none disagreed that the simulation game involved integrated learning from functional areas, 37 mainly in accounting, finance, strategy, marketing, sales, management, operations and human resource. Table 4.9 Integrate Learning from other Functional Area Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.3.7 Frequency 16 16 4 0 36 Percent (%) 44.4 44.4 11.1 0 100.0 Gained Top Management Perspective on Operations An examination of findings from the respondents as illustrated in Table 4.10 on whether they gained top management perspective on operation of an organization, 52.8% (19) stated they “strongly agreed”, 38.9% (14) stated they “agreed”, 8.3% (3) stated “neutral” and stated “disagreed” or “strongly disagreed”. Table 4.10 Gained Top Management Perspective on Operations Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.3.8 Frequency 19 14 3 0 36 Percent (%) 52.8 38.9 8.3 0 100.0 Gained Knowledge to Assist in Workplace According to findings from the respondents as illustrated in Table 4.11 on whether knowledge acquired in the simulation assisted them in the workplace, 47.2% (17) indicated “strongly agreed”, 41.7% (15) stated “agree” and 11.1% (4) stated they are neutral. None of the respondents stated “disagree” or “strongly disagree”. Table 4.11 Gained Knowledge to Assist in Workplace Strongly Agree Agree Neither Agree or Disagree Disagree Total Frequency 17 15 4 0 36 38 Percent (%) 47.2 41.7 11.1 0 100.0 4.3.9 Increased Confidence at Work A measure of the increased confidence at work was also another factor in determining the effectiveness of this game in enhancing learning. According to findings from the respondents as illustrated in Table 4.12, 47.2% (17) indicated “strongly agree”, 27.8% (6) stated “agree”, 16.7% (6) stated “neutral” and 8.3% (3) stated “disagreed”. Table 4.12 Increased Confidence at Work Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.3.10 Frequency 17 10 6 3 36 Percent (%) 47.2 27.8 16.7 8.3 100.0 Learnt a Great Deal in the Simulated Experience Amongst the respondents, 44.4% (16) indicated “strongly agree”, 33.3% (12) stated “agree”, 16.7% (6) stated “neutral and 5.6% (2) stated “disagree with the statement that they learnt a great deal in the simulated enterprise experience as illustrated in Table 4.13. Table 4.13 Learnt a Great Deal in the Simulated Experience Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.4 Frequency 16 12 6 2 36 Percent (%) 44.4 33.3 16.7 5.6 100.0 Perception Towards the use of Business Simulation Games One of the objectives of this study was to determine the perception of students towards the use of CAPSIM as a learning tool in enhancing learning in graduate class for strategic management program in United States International University. 39 The study sought to establish the impact business simulation games have in enhancing learning in the strategic management programs. The respondents were required to score the level of their agreement with various statements on their perception towards the use of business simulation games. The scale ranged from 1-5 where 1= strongly agree, 2= agree, 3= neutral, 4= disagree and 5= strongly disagree. The study computed means and standard deviation to help measure the respondents’ feedback about the respondents’ perception towards the use of business simulation games. The findings were in table 4.14 below. Table 4.14 : Perception Towards the use of Business Simulation Games Questions CAPSIM a worthwhile experience CAPSIM coverage of topics in Strategic Management CAPSIM Simulation of the Real Business World Learnt more in CAPSIM than in previous courses CAPSIM added realism to the course Overall Evaluation of CAPSIM Mean 1.69 Std. Deviation Variance 0.786 0.618 1.67 0.676 0.457 1.64 1.53 1.72 1.61 0.723 0.654 0.615 0.934 0.523 0.428 0.378 0.873 When asked whether CAPSIM Business simulation game is a worthwhile experience, the respondents agreed to a mean of 1.69 and a standard deviation of .786. On whether the CAPSIM business simulation game coverage of topics in Strategic Management was sufficient, the respondents agreed to a mean of 1.67 and a standard deviation of .676. On whether CAPSIM Simulation of the Real Business World was realistic, the respondents agreed to a mean of 1.64 and a standard deviation of .723. On whether the participants learnt more in CAPSIM than in previous courses, the respondents agreed to a mean of 1.53 and a standard deviation of .654. On whether the CAPSIM business simulation game added realism to the course, the respondents agreed to a mean of 1.72 and a standard deviation of .615. On the overall evaluation of CAPSIM, the respondents agreed to a mean of 1.61 and a standard deviation of 0.934. 40 4.4.1 CAPSIM business simulation game a worthwhile learning experience The respondents’ findings from Table 4.15 indicate that 47.2% (17) of them stated “strongly agree” and 38.9% (14) stated “agree”, 11.1% (4) stated “neutral” and 2.8% (1) stated “disagree” with the statement that they consider the CAPSIM business simulation game sessions are a worthwhile learning experience. Table 4.15 CAPSIM business simulation game a worthwhile learning experience Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.4.2 Frequency 17 14 4 1 36 Percent (%) 47.2 38.9 11.1 2.8 100.0 CAPSIM Coverage of Topics Covered in Strategic Management The results from Table 4.16 indicate that 44.4% (16) respondents stated “strongly agree”, 44.4% (16) stated “agree”, 11.1% (4) stated “neutral” and none stated “disagree” or “strongly disagree” with the statement that Capsim simulation game reflects topics covered in the Strategic Management course. Table 4.16 CAPSIM Coverage of Topics Covered in Strategic Management Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.4.3 Frequency 16 16 4 0 36 Percent (%) 44.4 44.4 11.1 0 100.0 Simulation Program “Simulates” Real Business World According to findings illustrated on Table 4.17, 47.2% (16) of the respondents stated “strongly agree”, 44.4% (16) stated “agree”, 5.6% (2) stated “neutral” and 2.8% (1) stated “disagree” that Capsim simulation game models the real business world. 41 Table 4.17 Simulation Program “Simulates” Real Business World Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.4.4 Frequency 17 16 2 1 36 Percent (%) 47.2 44.4 5.6 2.8 100.0 Learnt More than in Previous Classes Another important factor in determining the students perceptions towards business simulation games was whether they felt that they learnt more than in other previous classes or not. The findings, as illustrated on Table 4.18 indicate that 55.6% (20) respondents stated “strongly agreed”, 36.1% (13), 8.3% (3) stated “neutral” and none stated “disagree” or “strongly disagree” with the statement. The level of agreement with the statement is 1.53 showing that the respondents agreed that they learnt more than in other previous classes. Table 4.18 Learnt More than in Previous Classes Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.4.5 Frequency 20 13 3 0 36 Percent (%) 55.6 36.1 8.3 0 100.0 Realism in the Strategic Management Course The results from Table 4.19 indicate that 36.1% (13) respondents stated “strongly agree” and 55.6% (20) stated “agree”, 8.3% (3) stated “neutral” and none stated “disagree” or “strongly disagree” with the statement that the exercise added a lot of realism to the strategic management course. Table 4.19 Realism in the Strategic Management Course Strongly Agree Agree Neither Agree or Disagree Disagree Total Frequency 13 20 3 0 36 42 Percent (%) 36.1 55.6 8.3 0 100.0 4.4.6 Simulation is More Exciting The findings from Table 4.20 indicate that 86.1% (31) of the respondents felt that usage of CAPSIM simulation game as an aid in learning was more exciting in comparison to usage of other types of project works. Additionally, 77.8% (28) of the respondents felt that usage of CAPSIM simulation game as an aid in learning was more exciting in comparison to lectures and seminars. Finally, 80.5% of respondents perceive participating in CAPSIM simulation game more exciting than using learning techniques such as case studies. Table 4.20: The Simulation Game Is More Exciting Other types of Project Works Lectures and Seminars Case Studies 4.4.7 Responses Frequencies Per cent (%) 31 86.1 28 77.8 29 80.5 Aspects of the simulation liked best The findings from Table 4.21 indicate that 88.9% (32) of the respondents preferred real life experiences aspect of the simulation game. A total of 94.4% (34) of the respondents preferred to work as a team in participating in the simulation game, while 77.8% (28) preferred being more actively involved in the learning process. Another aspect of CAPSIM simulation which was liked best was the strategy skills, by 94.4% (34) of the respondents. Gaining technical knowledge was preferred by 80.6% (29) of the respondents, gaining business related knowledge was preferred by 77.8% (28) of the respondents while giving and preparing presentation was liked by 91.7% (33) of the respondents. Research skills were preferred by 72.2% (26) of the respondents and organization skills acquired were preferred by 77.8% (28) of the respondents, whereas communication skills were the least liked by 63.9% (23) of the respondents. Overall, the respondents mostly preferred the Strategy skills (94.4%) and Teamwork skills (94.4%) were the most important aspects that they preferred most. 43 Table 4.21 : Aspects of the simulation liked best Real Life Experiences Teamwork Skills Being more active in the learning Process Gaining technical knowledge Gaining business-related knowledge Giving/Preparing presentation Research Skills Communication Skills Organizational Skills Strategy Skills 4.4.8 Responses Percent (%) Frequencies 32 88.9 34 94.4 28 77.8 29 80.6 28 77.8 33 91.7 26 72.2 23 63.9 28 77.8 34 94.4 Overall Evaluation of CAPSIM The study revealed that CAPSIM simulation game was rated highly by the respondents. According to findings in Table 4.22, 61.1% of the students ranked the game as excellent, while 25% rated it as good. Only 8.3% of the respondents rated the game as average. None of the students rated the game as poor. Table 4.22 : Overall Evaluation of CAPSIM Excellent Good Indifferent Average Total 4.5 Frequency 22 9 2 3 36 Percent (%) 61.1 25.0 5.6 8.3 100.0 Factors affecting the adoption on the use of Business Simulation Games One of the objectives of this study was to determine the factors affecting the adoption of CAPSIM as learning tool in enhancing learning in graduate class for strategic management program in United States International University. The study sought to establish the impact business simulation games have in enhancing learning in the strategic management programs. The respondents were required to score the level of their agreement with various statements on the factors affecting the adoption of business simulation games. The scale ranged from 1-5 where 1= strongly agree, 2= 44 agree, 3= neutral, 4= disagree and 5= strongly disagree. The study computed means and standard deviation to help measure the respondents’ feedback about the factors affecting the adoption of business simulation games. The findings were in table 4.23 below. Table 4.23 Factors Affecting the Adoption of Business Simulation Games Questions Complete Studies Faster Learning Efficiency Learning Performance Productivity Job Performance Easy to Use Easy to Understand Complete Course Related Tasks Mean 1.86 1.81 1.61 1.50 1.56 1.83 1.50 1.58 Std. Deviation 0.867 0.786 0.728 0.655 0.843 0.857 0.697 0.732 Variance 0.752 0.618 0.530 0.429 0.711 0.734 0.486 0.536 When asked whether CAPSIM Business simulation game allows them to complete my studies faster, the respondents agreed to a mean of 1.86 and a standard deviation of .867. On whether the CAPSIM business simulation game increased their learning efficiency, the respondents agreed to a mean of 1.81 and a standard deviation of .786. On whether CAPSIM business simulation game improved learning performance, the respondents agreed to a mean of 1.61 and a standard deviation of .728. On whether CAPSIM business simulation game improved their productivity, the respondents agreed to a mean of 1.50 and a standard deviation of .655. On whether CAPSIM business simulation game improved their job performance, the respondents agreed to a mean of 1.56 and a standard deviation of .843. On whether CAPSIM business simulation game was easy to use, the respondents agreed to a mean of 1.83 and a standard deviation of .857. On whether CAPSIM business simulation game was easy to understand, the respondents agreed to a mean of 1.50 and a standard deviation of .697. On whether they were able to easily complete CAPSIM business simulation game related tasks, the respondents agreed to a mean of 1.58 and a standard deviation of .732. 4.5.1 Complete Studies Faster The findings illustrated on Table 4.24 indicate that 38.9% (14) of the respondents stated “strongly agree”, 41.7% (15) indicated “agree”, 13.9% (5) stated “neutral” and 5.6% (2) 45 stated that they “disagree” with the statement that CAPSIM business simulation game enabled them to complete studies faster. Table 4.24 Complete Studies Faster Frequency Strongly Agree 14 Agree 15 Neither Agree or Disagree 5 Disagree 2 Total 36 4.5.2 Percent (%) 38.9 41.7 13.9 5.6 100.0 Increased Learning Efficiency The results from Table 4.25 also indicate the level of agreement that CAPSIM game simulation sessions increased their learning efficiency. According to the findings, 41.7% (15) of the respondents stated “strongly agree”, 36.1% (13) stated “agree”, and 22.2% (8) stated “neutral and none stated “disagree” or “strongly disagree”. Table 4.25 Increased Learning Efficiency Frequency Strongly Agree 15 Agree 13 Neither Agree or Disagree 8 Disagree 0 Total 36 4.5.3 Percent (%) 41.7 36.1 22.2 0 100.0 Improved Learning Performance According to findings presented in Table 4.26, 50% (18) of the respondents stated they “strongly agree”, 41.7% (15) stated “agree”, 5.6% (2) stated “neutral” and 2.8% (1) stated “disagree” with the statement that CAPSIM simulation game increased their learning performance. Table 4.26 Improved Learning Performance Strongly Agree Agree Neither Agree or Disagree Disagree Total Frequency 18 15 2 1 36 Percent (%) 50.0 41.7 5.6 2.8 100.0 46 4.5.4 Improved Productivity Another important factor in determining the factors affecting the adoption of business simulation games was whether they felt that participating in a simulation game improved their productivity. The findings, as illustrated in Table 4.27, indicate that 58.3% (21) of the respondents stated “strongly agreed”, 33.3% (12) stated “agreed”, 8.3% (3) stated neutral and none stated “disagree” or “strongly disagreed” with the statement. Table 4.27 Improved Productivity Frequency Strongly Agree 21 Agree 12 Neither Agree or Disagree 3 Disagree 0 Total 36 4.5.5 Percent (%) 58.3 33.3 8.3 0 100.0 Improved Job Performance The results indicated in Table 4.28 highlight that 63.9% (23) of the respondents stated “strongly agree”, 19.4% (7) stated “agree”, 13.9% (5) stated “neutral”, while 2.8% (1) stated “disagree” with the statement that the simulation exercise aided them to improve their job performance while at work. Table 4.28 Improved Job Performance Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.5.6 Frequency 23 7 5 1 36 Percent (%) 63.9 19.4 13.9 2.8 100.0 Easy to Use According to findings from the respondents as illustrated on Table 4.29, 41.7% (21) of them stated “strongly agree”, 33.3% (12) stated “agree”, 19.4% (7) stated “neutral”, 2.8% (1) stated “disagree” with the statement that CAPSIM is easy to use. 47 Table 4.29 Easy to Use Frequency 15 12 7 1 1 36 Strongly Agree Agree Neither Agree or Disagree Disagree Missing Total 4.5.7 Percent (%) 41.7 33.3 19.4 2.8 2.8 100.0 Easy to Understand Another important factor in determining what affects adoption of CAPSIM in graduate management class, was whether the respondents felt that it was easy to learn and understand. The findings, as highlighted on Table 4.30, from the respondents indicate that 58.3% (21) stated “strongly agree”, 36.1% (13) stated “agree”, 2.8% (1) stated “neutral” and 2.8% (1) stated “disagree” with the statement. Table 4.30 Easy to Understand Strongly Agree Agree Neither Agree or Disagree Disagree Total 4.5.8 Frequency 21 13 1 1 36 Percent (%) 58.3 36.1 2.8 2.8 100.0 Easy to Complete Course Related Tasks Another important factor in determining what affects adoption of CAPSIM in graduate management class, was whether the respondents felt that it was easy to complete course related tasks. The findings, as highlighted on Table 4.31, from the respondents indicate that 55.6% (20) stated “strongly agree”, 30.6% (11) stated “agree”, 13.9% (5) stated “neutral”. Table 4.31 Easy to Complete Course Related Tasks Strongly Agree Agree Neither Agree or Disagree Disagree Total Frequency 20 11 5 0 36 48 Percent (%) 55.6 30.6 13.9 0 100.0 4.6 Correlation Analysis of the Dependent and the Independent Variables The data presented before on effectiveness of business simulation games, students’ perceptions towards CAPSIM as learning tool and factors affecting the adoption of CAPSIM as learning tool were computed into single variables per factor by obtaining the averages of each factor. Pearson’s correlations analysis was then conducted at 95% confidence interval and 5% confidence level 2-tailed to establish the amount of correlation, direction and significance. Table 4.32 below indicates the correlation between factors effectiveness of business simulation games, students’ perceptions towards CAPSIM as learning tool, factors affecting the adoption of CAPSIM and overall evaluation of CAPSIM business simulation game. According to the table, there is a positive relationship between the overall evaluation of CAPSIM business simulation game and factors effectiveness of business simulation games, students’ perceptions towards CAPSIM as learning tool and factors affecting the adoption of CAPSIM of magnitude 0.235, 0.209 and 0.047 respectively. However, the positive correlation between the overall evaluation of business simulation games with effectiveness of business simulation games and perception towards the use business simulation games was below the threshold of 0.5 which might be due to the ordinal nature of data collected. The correlation between overall evaluation of business simulation games with factors affecting the adoption on the use of business simulation games was strongly positive with a threshold of 0.784 49 Table 4.32 Correlation Matrix of Students’ Overall evaluation of CAPSIM Simulation Game and Independent Variables Effectiveness of business simulation games Effectiveness of business simulation games Pearson Correlation Sig. (2-tailed) Perception towards the use business simulation games Pearson Correlation Sig. (2-tailed) Factors affecting the adoption on the use of business simulation games Pearson Correlation Sig. (2-tailed) Overall Evaluation of business simulation games Pearson Correlation Sig. (2-tailed) 4.7 Factors affecting the adoption on the use of business simulation games Perception towards the use business simulation games Overall Evaluation of business simulation games 1 -.065 .707 -.023 .895 .235 .167 -.065 .707 1 -.073 .671 .209 .221 -.023 .895 -.073 .671 1 .047 .784 .235 .167 .209 .221 .047 .784 1 Chapter Summary This chapter has presented the results of findings of the study which was carried out to determine the impact of business simulation games technology on enhancing learning in strategic management programs. The results were based on research questions from which the questionnaires were extracted for respondents. Thirty six (36) students out of the thirty seven (37) target responded to the questionnaire. The data was analyzed and the findings presented with descriptive and frequency statistics in form of tables, graphs and correlation analysis using charts together with explanations describing the frequencies 50 and percentages trend of the respondents. The findings of the study indicated that the data collections instruments were effective. 51 CHAPTER FIVE 5.0 DISCUSSIONS, CONCLUSION AND RECOMMENDATIONS 5.1 Introduction This chapter presents a summary of major findings of the study as shown in the previous chapter and conclusions and recommendations, on the impact of business simulation games technology in enhancing learning in strategic management programs: a case of CAPSIM in United States International University. Based on the findings in chapter four, the study gives a summary, recommendations and suggestions for further research. The recommendations are based on the objective of the study. 5.2 Summary The purpose of the study was to determine the impact of business simulation games technology on enhancing learning in strategic management programs especially at the United States International University, looking closely at the effectiveness, students’ perceptions and factors affecting the adoption of business simulation games. The study was guided by the following objectives: To determine the effectiveness of Business Simulation Game, CAPSIM, as a learning tool in enhancing learning in graduate class for strategic management program in United States International University, to determine the students’ perceptions towards CAPSIM as learning tool in enhancing learning in graduate class for strategic management program in United States International University, to determine factors affecting the adoption of CAPSIM as learning tool in enhancing learning in graduate class for strategic management program in United States International University. The study used a case study research design where thirty seven (37) questionnaires were distributed to business graduate students of United States International University. The sampling technique was non-probability sampling to include a group of students that are currently undertaking the Introduction to Strategic Management (BUS 6020) course. 52 The major findings with regard to determining the effectiveness of Business Simulation Game, CAPSIM, as a learning tool in enhancing learning in graduate class for strategic management program, was that students found the game effective in enhancing learning. In addition, the students learnt a great deal from the course, as a result of using the simulation game tool. With regard to determining the students’ perception towards CAPSIM as learning tool in enhancing learning in graduate class for strategic management in MBA program, was that students perception towards the usage of simulation game was positive and it assisted them achieve their desired objectives of the course. As for determining the factors that affect the adoption of CAPSIM as learning tool in enhancing learning in graduate class for strategic management program, students highly adopted the simulation game technology more easily due to its ease of use and perceived benefits. 5.3 Discussion 5.3.1 Effectiveness of Business Simulation Games The study revealed that a majority of the respondents observed that CAPSIM was effective as a learning tool in enhancing learning while undertaking the graduate class for strategic management. The study reveals that for a business simulation game to be effective, orientation of the participants is important. Kulkarni and Sivaraman (2013) supports these findings , highlight that business simulations can be very effective in introducing business concepts, enhancing decision making skills and appreciation of cross-functional nature of business. The findings indicate that 72.2% of the respondents agree that the simulated game orientation assisted them in understanding their individual roles better. 53 Clear objectives of the business simulation game help participants understand their expectations. The study found out that during the initial start of the course, the objectives of the simulation game were made clear to them. After objectives are defined, the participants are expected to participate throughout the game without much assistance from the instructor. Fariah, Hutchinson, Wellington and Gold (2009) confirm that common objectives of business simulation games are to give learners hands on experience in formulating and implementing strategy. The findings indicate that 86.1% of the respondents agree that simulation game objectives were made clear before the commencement of the games. In addition, 72.2% of the respondents agree that the entire simulation exercise was well organized, 83.3% agree the instructor was well organized and 86.1% agreed that the instructor communicated well. The use of simulation games involves the integration of functional areas, such as accounting and finance, marketing, operations management and human resource management. The application of these functional areas during participation enables the participants to gain knowledge in business strategy. The study found out that the participation during simulation games activity involved the application of integrated operational functions of an organization. Selen (2001) confirms these findings by highlighting that in “traditional” business education, their lacks integration of functional areas in relation to evolving overall business models and strategies. Cook and Swift (2006) established that business simulation games improved problem solving and analytical skills, thus aiding in learning business concepts and fundamentals and application of knowledge. The findings indicate that 88.8% of the respondents agree that the simulation involved integration from the organizational functional areas. Additionally, 88.9% of the respondents also confirmed that, as a result of their participation in the simulation game, they gained extensive knowledge that assisted them in the workplace. At least, 91.7% of the respondents agree that they gained top management perspective on the operation of an organization. 54 5.3.2 Perception towards the use of business simulation games The study revealed that the level of perception by students towards the use of business simulation games was highly positive. Knowlton and Sharp (2005) confirm that students perceived business games as a valid representation of real world issues facing managers which entailed analysis of multiple variables, improvement of skills in strategy formulation, combination of diverse marketing concepts and techniques, dynamic financial concepts, problem solving techniques, communication and teamwork. The perceived view as a reality was considered as highly valuable by the respondents. According to findings, 91.6% of the respondents agree that the business simulation game actually simulates the real business world. In addition, 86.1% of the respondents considered their participation as a worthwhile experience. Participation in business simulation games improved students’ learning outcomes. According to the study, learning was more prevalent and considered valuable using simulation games than in other traditional forms of learning. Faria (2001) confirms these findings by establishing that students engaged in the use of simulation games while learning performed better on average in comparison to those who used only traditional teaching methods including lectures, case studies and readings. Tripp and Stuenkel (2005) also established that those students who participated in a marketing simulation game experienced a positive effect on their overall learning. The findings from the study indicate that 91.7% of the respondents agree that they learnt more in business simulation games than in previous classes they attended which didn’t involve use of simulation. In addition, 86.1% considered simulation games more exciting than other types of projects, 77.8% more exciting than lectures and seminars and 80.5% more exciting than case studies. The study suggests that the participation of students in simulation is a satisfying experience. The findings reveal that the extent of the students’ satisfaction with the usage of business simulation games while learning was positive. Morrest and Koball (2002) 55 confirm the findings by establishing that students, overall responded highly positive to simulations games. Most of the students observed by Morrest and Koball (2002) provided positive statements about how the simulations were positive in were generally satisfied. According to findings from the study, the aspects of the simulation liked best were team work and strategy skills at 94.4%, preparing presentations at 91.7%, real life experiences at 88.9% and gaining technical and business related knowledge at 77.8%. The overall evaluation of the game was rated at 61.1% as excellent, 25% as good, 5.6% as indifferent and 8.3 as average. There were no ratings for poor satisfaction. 5.3.3 Factors affecting the adoption on the use of business simulation games The study revealed that the students adopted the CAPSIM simulation game due to the perceived usefulness and perceived ease of use factors. Davies, 1986, defined a model known as the “Technology Acceptance Model (TAM)” in which he explains the degree to which a person believes that using a particular system would enhance his or her job performance. The theory, as proposed by Davies, 1986, is determined primarily by two factors, namely, perceived usefulness (PU) and perceived ease of use (PEOU). David (1989) defines perceived usefulness as the degree to which a person believes that using a particular system would enhance his or her job performance. Perceived ease of use is defined as the degree to which the prospective user expects the target system to be free of effort. Any user of an information system, when presented with a new technology, will base their decision of adopting the technology based on how he or she perceives its use and how easy it is to use. Shroff, Deneen and Ng, 2011 have applied the use of the Technology Acceptance Model theory to explain the computer usage behavior and factors associated with acceptance of technology and test the acceptance of various technologies or software used in teaching and learning within a student context. Bourgonjon, Valcke and Soetaert (2009) established that the determinants of perceived usefulness in learning outcomes while using business simulation games can be categorized into four primary areas, namely, the course structure, the parameters of the game, the student characteristics, and game effort and performance. 56 During this study, the respondents agreed that the simulation game was easy to use and understand throughout the session. From the findings, with regards to the broader category of perceived usefulness, 80.6% of the respondents agreed that the simulation games assisted them complete their studies faster, 77.8% agreed that the simulation game increased their learning efficiency and performance and 91.6% improved their job performance. With regards to the perceived ease of use, 75% found the simulation game easy to use and 94.4% were able to easily understand how the game played and unambiguous. 5.4 Conclusion The conclusion is drawn from the research findings on the basis of the research questions. The purpose of the study was to establish the impact business simulation games have in enhancing learning in the strategic management programs. 5.4.1 Effectiveness of Business Simulation Game The study concludes that business simulations games are very effective in introducing business concepts, enhancing decision making skills and appreciation of cross-functional nature of business. Once business concepts and common objectives of business simulation games are introduced, this gives learners hands on experience in formulating and implementing strategy. For business simulation games to be effective at enhancing learning, setting clear objectives from the onset of the game help participants understand their expectations on how to engage themselves fully. Additionally, the simulation exercise needs to be well organized by the instructors, as well as communication channels need to be effective. The study concludes that business simulation games are effective in enhancing learning. Use of business simulation games is effective in usage as a learning tool it enhances learning in a graduate strategic management course. The effectiveness of the simulation games is determined to a greater extent by the perceived outcomes of the learning experiences and the adoption of technology by the students due to the ease of use and ease of understanding. 57 5.4.2 Students’ Perceptions towards Business Simulation Games The study concludes that the level of perception by students towards the use of business simulation games is highly positive. Students perceive and value business simulation games as valid representation of real world issues facing managers which entails analysis of multiple variables, improvement of skills in strategy formulation, combination of diverse marketing concepts and techniques, dynamic financial concepts, problem solving techniques, communication and teamwork. Additionally, students prefer the use of business simulation games in learning environments more highly than the use of other forms of teaching, such as, lectures, case studies and readings. This is mainly because it entails the use of experiential learning techniques. The experience and level of satisfaction attained as a result of usage of business simulation games is important in improving learning. 5.4.3 Factors Affecting the Adoption of Business Simulation Games The study concludes that the perceived usefulness and ease of use does affect how business simulation games are adopted and used. The degree to which a person believes that using a particular system would enhance his or her job performance (perceived usefulness) and the degree to which the prospective user expects the target system to be free of effort (ease of use) has enabled students adopt fully the usage of business simulation games into learning. Business simulation games have assisted students complete their studies faster, increased their learning efficiency and performance, improved their job performance. The business simulation game was easy to use and students were able to easily understand how the game was played and un-ambiguous. 58 5.5 Recommendations This section makes recommendations that the researcher feels are important in formulating guidelines for implementing business simulation games in enhancing learning at the United States International University. 5.5.1 Recommendations for improvement 5.5.1.1 Recommendations to Improve the Effectiveness of Business Simulation Games in Enhancing Learning It is recommended that the United States International University provide additional information to students, particularly those that may have a limited exposure to working with teams, on the most effective ways to actively participate, communicate and make decisions as part of the team. 5.5.1.2 Recommendations to Improve Students’ Perception towards use of Business Simulation Games It is recommended that the United States International University adopts a feedback mechanism from students with regards to the CAPSIM simulation game. Feedback gathered from the students can be reviewed to provide suggestions on areas that require improvement. 5.5.1.3 Recommendations to Improve Adoption of Business Simulation Games It is recommended that the United States International University improve the internet speeds for purposes of assisting students to easily access and participate in CAPSIM 59 simulation game. Slow internet speeds greatly impact on accessibility and functionality of the game system, therefore reducing the perceived ease of use and adoption. 5.5.2 Recommendations for Further research Business simulation games learning concept is a fairly new concept in delivery of teaching in Masters of Business Administration programs. Use of such a system in the Kenyan context needs to be further explored to establish the extent, usage and challenges faced amongst other universities in the country. 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The results of this project will be to evaluate the effectiveness of the business simulation games, as a technological aid to learning. Through your participation I hope to understand more about how students perceive the use of such games. I hope that the results of the survey will be useful for the USIU business graduate program and I hope to share my results by analyzing and compiling the findings in my MBA Project. If you decide to participate in this survey, I guarantee that your responses will be treated in confidentiality. The survey should take you about 10 minutes to complete. I hope you will take the time to complete this questionnaire and return it. Your participation is voluntary.. If you have any questions or concerns about completing the questionnaire or about being in this study, you may contact me on 0720393300 or dennis.mbaabu@gmail.com. The Dean, School of Business, at United States International University has approved this study. Sincerely. Dennis K Mbaabu 67 APPENDIX II : QUESTIONNAIRE Section A | General Information 1. What is your employment status? Please tick in ONE of the boxes provided below Full Time Part time Self Employed Not Employed 2. What is your age (in years)? Please tick in ONE of the boxes provided below 24 and below 25 - 30 31 - 36 37 - 41 42 and above 3. Specify your Gender Female Male 4. How soon (Semesters) do you expect to finish your USIU MBA degree program? Please tick in ONE of the boxes provided below 1–2 3–4 4 and above 5. Have you declared your concentration? Please tick in ONE of the boxes provided below. If No, skip question 6 Yes No 6. What concentration have you declared? Please tick in ONE of the boxes provided below Entrepreneurship Strategic Management Information Technology Management Finance Human Resource Management Marketing Undecided 7. What concentration do you intend to declare? Please tick in ONE of the boxes provided below Entrepreneurship Strategic Management Information Technology Management Management Marketing Undecided 68 Finance Human Resource 8. Have you completed your core courses? Please tick in ONE of the boxes provided below Yes No 9. Have you completed your concentration courses? Please tick in ONE of the boxes provided below Yes No 10. Are you currently registered for the BUS 6020: Introduction to Strategic Management program? Please tick in ONE of the boxes provided below Yes No 11. Who is your lecturer? (optional) Specify names: ____________________________________________________ 12. Have you participated in a business simulation course before? Please tick in ONE of the boxes provided below Yes [ Please go to Question 13 & 14 ] No [ Please go to Question 15 ] 13. If yes (Question 12), which business simulation games have you participated in before? Please specify:______________________________________________________ __________________________________________________________________ __________________________________________________________________ 14. If yes (Question 12), when did you last play a business simulation game? Please specify: _____________________________________________________ __________________________________________________________________ __________________________________________________________________ 15. While attending the BUS 6020 Course, has the Capsim business simulation game been introduced? Please tick in ONE of the boxes provided below Yes No 16. Have you joined in a group that is actively participating in Capsim? Please tick in ONE of the boxes provided below Yes No 69 Section B | Effectiveness of Business Simulation Games Please tick in ONE of the boxes provided below for each question # Strongly Agree 17 The objectives of the simulation game were made clear at the beginning of the course 18 The entire simulation was well organized 19 The Instructor was well organized 20 The Instructor communicated well 21 The simulation orientation helped me to understand my role in simulation The simulation game involved integrated learning from functional areas (accounting, finance, strategy, marketing, etc.) The exercise enabled me gain top management perspective on the operation of an organization I learnt knowledge in this simulation that will help me in the workplace As a result of this simulation exercise, I have increased my confidence at work I learnt a great deal through the simulated enterprise experience 22 23 24 25 26 70 Agree Neither agree nor disagree Disagree Strongly Disagree Section C | Perception Towards the use of Business Simulation Games Please tick in ONE of the boxes provided below for each question # Strongly Agree 27 Do you consider the Capsim business simulation game a worthwhile learning experience? 28 How well does the Capsim simulation game reflect topics covered in the strategic management course? 29 To what extent do you think the program actually “simulates” the real business world? 30 I learnt more than in other previous classes The exercise added a lot of realism to the strategic management course. 31 Agree Neither agree nor disagree Disagree Strongly Disagree 32. What is the most important thing you learned from the game? Please specify : __________________________________________________ 33. The game is more exciting than (check all that apply): Other types of project works Lectures and seminars Case Studies Nothing, it’s not exciting at all 34. The game improved (check all that apply): My analytical thinking My strategic thinking My other ways of thinking No, it didn’t improve my way of thinking at all 71 35. I would like to participate in a future simulation exercise Please tick in ONE of the boxes provided below Yes No 36. Select the aspects of the simulation you liked best. Please tick in ANY of the boxes provided below “Real life” experience Teamwork skills Being more active in the learning process Gaining technical knowledge Gaining business-related knowledge Giving/preparing a presentation Research skills Communication skills Organizational skills Strategy skills No Response 37. What is your overall evaluation of Capsim Simulation game? Please tick in ONE of the boxes provided below Excellent Good Indifferent Average 72 Poor Section D | Factors Affecting the adoption on the use of Business Simulation Games Please tick in ONE of the boxes provided below for each question Perceived Usefulness # Strongly Agree 38 39 40 41 42 Agree Neither agree nor disagree Disagree Strongly Disagree Neither agree nor disagree Disagree Strongly Disagree Capsim Business simulation game allows me to complete my studies faster. Capsim Business simulation game has increased my learning efficiency. Capsim Business simulation game has improved my learning performance. Capsim Business simulation game has improved my productivity. Capsim Business simulation game has improved my job performance. Perceived Ease of Use Please tick in ONE of the boxes provided below for each question # Strongly Agree 43 44 45 Capsim Business simulation games is easy to use Interacting with Capsim business simulation game is unambiguous and easy to understand. Using Capsim business simulation game to complete course related tasks is easy. 73 Agree