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Education Sciences
  • Systematic Review
  • Open Access

31 January 2025

Business Simulation Games for the Development of Decision Making: Systematic Review

and
1
Department of Financial Economics II, University of the Basque Country UPV/EHU, 01006 Vitoria-Gasteiz, Spain
2
Department of Didactics of Musical, Plastic and Corporal Expression, University of the Basque Country UPV/EHU, 48940 Leioa, Spain
*
Author to whom correspondence should be addressed.
This article belongs to the Special Issue Emerging Technologies in Teaching and Learning to Solve Real-World Challenges: Perspectives, Challenges, and Future Directions

Abstract

Business simulation games (BSGs) are considered a useful instructional tool to be implemented in the classroom, especially in light of new trends in education. The key components of the paradigm are BSGs and Decision Making (DM), as the latter is often essential to a high-quality education. Thus, over the last 10 years, efforts to find possible methods to enhance BSG learning experiences for the development of DM in higher education have increased. The goals of this article were to examine the effect of BSGs on students’ DM at university, and to identify the elements that can be developed in the BSG learning experience to promote DM. Following PRISMA criteria, a systematic review was carried out using Scopus, Web of Science, and ProQuest. A total of 13 of the 2897 papers that were first discovered underwent a comprehensive review, with all conclusions and findings subjected to analysis. Following implementation, the majority of the BSG learning experiences enhanced DM results. In summary, a few key elements have been highlighted that must be followed to ensure the BSG learning experience helps students foster their DM.

1. Introduction

Recent years have seen a rise in interest in learning about cutting-edge teaching techniques because they present fresh opportunities for the advancement of education, to the great benefit of both teachers and students (Gatti et al., 2019; Sultanova & Sadullayev, 2024). The considerable impetus provided by new technologies has made it possible to bring education closer to a larger audience and has also supplied very valuable tools for innovation, all the while enabling a level of flexibility that was unimaginable only a few years ago (Haleem et al., 2022). This study will specifically concentrate on Business Simulation Games (BSGs) for Decision Making (DM) development because they have acquired great importance recently (Faisal et al., 2022) and are increasingly in demand in higher education due to the fact that BSGs foster learning experiences that improve decision-making skills, skills that must be worked on in quality teaching (Huang et al., 2022).
BSGs are experiential learning tools that allow students to run a simulated organization in a realistic, interactive, and risk-free setting while learning about business management (Bach et al., 2023). Students compete individually or in teams, make strategic decisions, work through difficult scenarios, feel the effects of their decisions, and grow from their failures (Coffey & Anderson, 2006; Faisal et al., 2022). Closely linked to the concept of BSGs are the Serious Games that were originally defined as games that are not meant to be played solely for entertainment but rather have a clear and carefully planned educational goal (Abt, 1970; Michael & Chen, 2005). Serious Games expose the player to an environment that provides content based upon experience or knowledge. This experience relates to the particular serious gaming context, like business or education (Laamarti et al., 2014).
BSGs represent a subset of game-based learning and are being utilized in higher education more and more, because typically they provide students with excellent experiences (Silitonga et al., 2024). BSGs have grown more sophisticated and ubiquitous as technology has advanced and spread (Ferreira et al., 2021). This widespread use is due to a variety of factors, the most common of which is the desire to provide the most realistic atmosphere for corporate DM in a classroom setting (Jääskä et al., 2022; Yalabik et al., 2012). Several researchers have looked at how BSGs relate to learning. BSGs are instruments that facilitate the study of enterprise management by offering a low-risk, regulated situation with competition. They provide a safe, secure environment in which students can learn by modeling a variety of real-world circumstances (Beranič & Heričko, 2022; Hernández-Lara et al., 2018; Pando-Garcia et al., 2016). Thus, for instance, BSGs can facilitate a breakthrough in entrepreneurial attitudes and self-efficacy or teach students about the economic laws governing companies and the market by using a game (Chen et al., 2022; Peterková et al., 2022). Studies have also suggested that BSGs enhance DM abilities (Bach et al., 2023; Endress et al., 2023) and are favorable to higher-order thinking capacity, which are dependable indicators of success in the workplace and in school (Faisal et al., 2022; Huang et al., 2023). Lastly, BSGs are also very helpful because they enable the development of the competencies that businesses need. To be more precise, BSGs give students opportunities for multi-layered learning and support the development of soft skills including data analysis, DM, and strategic thinking (Grijalvo et al., 2022; Mustata et al., 2017).
DM skills are one element that is intimately related to students learning to be prepared for the real life of a company, as managers have to make many decisions in their daily work (De La Torre et al., 2021; McChlery & Visser, 2009; Tsiligiris & Bowyer, 2021). DM is the learner’s cognitive ability to carry out systematic and rational DM processes which involves relating and adapting to other people, choices, and also the individual DM process (Grijalvo et al., 2022). Making mistakes in DM can lead to significant or costly consequences for organizations, which is why it is so important for business students to practice and work on DM skills (Goosen & Steenkamp, 2023; Hallo & Nguyen, 2021).
Herbert Simon’s theory explains the DM process and the skills needed to carry it out (Sakata et al., 2014). According to this theory (Simon, 1997), the procedure consists of four phases: intelligence (collecting data and evaluating it to pinpoint problems or relevant aspects); design (creating a number of strategies to address the problems or relevant aspects); choice (choosing the best strategy of action to address the problems or relevant aspects); and review (executing the selected strategy of action, assessing and analyzing the results to guide the subsequent course of the decision). Three skills are often needed for each of the four DM stages. Collecting data from financial accounts and news about the decision maker’s own company as well as other businesses, such as competitors, is part of the intelligence and review stages. As such, these phases necessitate the capacity to evaluate present conditions. In contrast, design and choice require the decision-maker to make use of the given data to generate possible strategies and then select which of them to implement. Therefore, the capacity to devise workable plans is essential for these two phases of the process. Furthermore, the ability to work well with others facilitates the smooth progression of the four stages and encourages the team to reach a consensus.
This interest has produced a wealth of studies that concentrate on BSGs in higher education (Faisal et al., 2022). According to current research, DM improvement is especially relevant for the education of business students (Faria et al., 2009; Hofstede et al., 2010; Pacheco-Velázquez et al., 2023). Our research questions were the following: (1) what is the relation between the BSG learning experience and DM at university and (2) what elements can be developed by the BSG learning experience to promote DM? Therefore, the goals of the current study were as follows: (1) to examine the effect of BSGs on students’ DM at university and (2) to identify the elements that can be developed in the BSG learning experience to promote DM. Motivated by the necessity of collection and analysis, this paper will be very beneficial to researchers, university instructors, and workers in the corporate world who want to grow to the fullest extent of their abilities and achieve fulfillment with their performance.
To the best of the authors’ knowledge, no systematic review has met the objectives of this investigation. Some reviews on BSGs have focused on other outcomes such as intrinsic motivation (Vélez et al., 2023) or leadership (Lopes et al., 2013), and others have focused on general aspects of BSGs (Brandl & Schrader, 2024; Faisal et al., 2022; Ferreira et al., 2021).
The article will be organized as follows: the first section presents the research materials and methods; the next details the results followed by a written discussion. The main conclusion, limitations, and recommendations for further research are presented in the last section.

2. Materials and Methods

This systematic review was carried out in accordance with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) standards, provided in Supplementary Material S1 (Moher et al., 2015; O’Reilly et al., 2018).
Every article on the list has undergone a rigorous review process, thanks to the criteria set by PRISMA.

2.1. Design

A thorough search was conducted of the Scopus, Web of Science, and ProQuest databases by both authors in order to find papers that were published before 12 July 2024. Titles, keywords, and abstracts were the search parameters used. The terms “population”, “interventions”, and “outcomes” were included in the search strategy. The population terms, “university”, “higher education”, high education”; the intervention terms, “business game”, “management game”, “business simulation game”, “management simulation game”; and the outcome terms, “decision making”, were connected using OR. The three keyword groupings were combined using AND.

2.2. Screening Strategy and Selection of Scientific Articles

Duplicate records were eliminated when the search was finished. The remaining records were then examined by both authors to see if they met the inclusion or exclusion criteria, which are displayed in Table 1 below.
Table 1. Inclusion/exclusion criteria.

2.3. Data Selection

The elements of BSGs that could facilitate DM were located, and the data that most represent BSGs were retrieved. This was accomplished by presenting all of the facts from the original articles in a single table, together with the following information: aim, country, sample size, area, measurement methods, results, and conclusion.

2.4. Methodological Assessment

By adjusting the STROBE assessment criteria, the methodical review methodology was utilized to find papers that fit the inclusion requirements (Alamri et al., 2020). Each item was scored using a numerical description (1 = included, 0 = not included). The rating of each study was assessed qualitatively in accordance with the guidelines provided in Supplementary Material S2 by O’Reilly et al. (2018). If an article scored seven or more points, it was considered to have a low risk of bias; if it had fewer points, it was considered high risk.

3. Results

3.1. Identification and Selection of Studies

Of the 2897 documents that came from their original sources, 29 were duplicates or triplicates found in the databases of Scopus, The Web of Science, and ProQuest. As a result, 2868 articles were downloaded. After a second assessment of the titles, abstracts, and full texts of the remaining publications had been carried out using the same standards indicated in Table 1, 1732 studies were disregarded in accordance with Criterion 5 (Study). Of the 1136 articles that remained, 646 were removed for failing to meet Criterion 1 (Population), 446 were removed for failing to meet Criterion 2 (Intervention), and 31 were removed for failing to meet Criterion 4 (Outcomes). Finally, 13 publications were included in the qualitative analysis. The four PRISMA-recommended phases and the inclusion and exclusion criteria for each research stage are depicted in a flow diagram in Figure 1.
Figure 1. Flow diagram of the study.

3.2. Methodological Quality

Table 2 shows a very high overall methodological quality rating for each of the STROBE assessment criteria (O’Reilly et al., 2018), which are covered in Section 2.4.
Table 2. The methodological quality of the articles.

3.3. Article Analysis

Table 3 presents the key findings regarding the BSGs implemented in each investigation, as well as the analytical results gleaned from the original papers. In addition, Table 4 provides more specific information on the background or traits of the BSG, its type, the key elements of its implementation, and the impact or benefits of the BSG in each study.
Table 3. Aim, country, sample, area, measurement methods, results, and conclusion.
Table 4. Background/traits, type of business simulation game, key elements of implementation and impact/benefits.
As observed, the interventions were performed in a variety of geographical locations, allowing BSGs to be produced without regard to national customs or cultural characteristics. Furthermore, the sample sizes are quite representative, and the BSGs were applied in a wide range of knowledge domains, so they can be utilized in any of them without being limited by the specifics of each one. Most of the BSGs analyzed were computer games. With respect to the measurement methods, we discovered surveys created by the study authors themselves or by others, and observations.
It is evident from the examined articles that BSGs have favored DM. Furthermore, a couple of BSGs have fostered additional skills like analytical thinking, strategic thinking, teamwork, problem-solving, proactive thinking, communication, intuitive thinking, responsibility, time management, argumentation, conflict management, courage, and self-esteem.

4. Discussion

This systematic review has answered the following research questions: (1) what is the relation between the BSG learning experience and DM at university and (2) what elements can be developed by the BSG learning experience to promote DM?
Regarding the first research question, this study has shown that the BSGs employed have helped to increase DM, and many of their characteristics can help to promote the DM process explained by Herbert Simon’s theory, which is why the results obtained in the present study are congruent with previous literature. The first step, which is called intelligence, requires collecting and evaluating data to pinpoint problems or relevant aspects, where students make decisions that are based on real-life situations. The second step is design, which requires the creation of a number of strategies to address the problems or relevant aspects; BSGs make it possible to manage connections between people and activities with the integration of information and dealing with uncertainty. The third step is choice, where students must choose the best strategy of action to address the problems or relevant aspects and in BSGs they need to develop problem-solving and collaborative skills, in a risk-free environment. The last step is review, where participants must execute the selected strategy of action, assessing and analyzing the results to guide the subsequent course of decision making, obtaining immediate feedback from the BSG.
Moreover, the selected articles show that the BSGs, apart from DM, promote different aspects such as intrinsic motivation, and learning outcomes, such as learning efficiency, teamwork, communication, analytical thinking, or strategic thinking. This is congruent with several systematic reviews that show multiple benefits in the use of BSGs where they are correctly applied (Brandl & Schrader, 2024; Faisal et al., 2022; Ferreira et al., 2021).
Regarding the second research question, independently of the design or particularity of each BSG, it is important to emphasize different elements that must be present in the process in order to develop DM skills and to link the learning objectives to the BSG to be implemented. The establishment of clear learning objectives, business management-related themes, and student groups that use games for learning also marked the beginning of the BSG learning process. Determining how game-based activities relate to the material covered in the course or class is one of the issues that must be resolved in this regard, which is consistent with previous results from another systematic review (Faisal et al., 2022). While realistic representations of real projects or occurrences are not necessary for educational games, they can help achieve learning objectives (Jääskä et al., 2022).
Furthermore, it is essential for the instructor to provide basic knowledge of the subject to be covered and clear instructions for the game and the DM the students will have to deal with (Yalabik et al., 2012). These results are congruent with another systematic review on BSGs (Faisal et al., 2022). It is relatively complex to use games and simulations for several reasons such as insufficient accounting and finance knowledge, inexperience, or a general lack of business experience and knowledge (Seethamraju, 2011). Lecturers must assume new responsibilities in addition to lecturing when it comes to planning, managing, and instructing game-based learning sessions. Thus, lecturers must devote a significant amount of time to teaching even with the most advanced simulations (Grijalvo et al., 2022). In particular, they ought to provide more assistance to students in managing risks and uncertainty. This assistance could come in the form of instruction on the inclusion and evaluation of various scenarios, some mathematical tools for estimation and prediction, DM strategies for uncertain situations, etc. (Hernández-Lara & Serradell-López, 2018).
In addition, another element that is relevant is the design of the game itself. In general, to promote DM, the components, mechanics, and dynamics of the BSG must be taken into account (Jääskä et al., 2022). It is also very important to find a balance in the complexity of the game design. On the one hand, it is beneficial to have a limited scope with few choice variables and with little training (Endress et al., 2023), allowing students to play multiple times to see the effect and get the most out of the game, thus reinforcing student engagement (McKone & Bozewicz, 2003). On the other hand, it is also convenient to provide additional text and phases, since they may improve the likelihood of a better learning experience (Mannino et al., 2021); but care must be taken with the implementation of a BSG as it can be difficult if the game speed is too rapid especially at the beginning (Seethamraju, 2011). Further, students are required to respond to obstacles and surprises in the game design, which helps them learn how to solve problems, modify or adapt current ideas, and fosters their critical thinking abilities (Jääskä et al., 2022).
Another element to consider is the different types of activities that can be carried out in the BSG learning experience to meet the defined learning goals. The activities should have an interactive nature to encourage student involvement and collaboration (Endress et al., 2023), because BSG implementation is difficult when there is poor teamwork, communication, and collaboration (Seethamraju, 2011). Students should be provided with pre-game materials to help them prepare for the game session, thus giving them a sufficient academic basis for the subject. Moreover, it is useful to make overall presentations paying special attention to communication (Zöbeley et al., 2011) and to the discussions that will arise throughout the game. Further, students will gain an understanding of the relationship between BSG activities and real-world scenarios through the use of meaningful stories and narrative case studies (Jääskä et al., 2022). The BSG learning experience should promote characteristics such as goal-setting, conflict management, or argumentation (Mustata et al., 2017), and debriefing sessions are also very useful for this purpose as they emphasize that students’ observations, experiences, and thoughts can be shared and discussed (Jääskä et al., 2022).
In addition, it is important to provide feedback on the results through reports. The possibility of quickly obtaining feedback on the process carried out in the BSG makes it possible to re-adjust decisions that have been made, evaluate consequences that have not been taken into account, or develop critical thinking skills. Students will be able to clearly see results that can later be evaluated in a group and thus promote discussion and an exchange of opinions among participants to solve any problems (Jääskä et al., 2022). In addition, BSGs allow instructors to determine the limits of their students’ comprehension, helping them to teach knowledge more efficiently (Sakata et al., 2014), so they can establish fluid communication and thus have a faster response.
Finally, several studies have highlighted a few obstacles that have impaired DM in BSGs. Some teams struggled with communication and reaching decisions as a group, which negatively impacted performance (Seethamraju, 2011). In addition, even if students have a specific strategic goal in mind when making decisions, this information does not often show up in their communication style. They appear to use a more short-term strategy, making decisions for each round based on rivals’ financial circumstances from the previous round without any explicit long-term planning or objectives (Hernández-Lara & Serradell-López, 2018). Also, developing proper business strategies and making acceptable business decisions based on the interpretation of reports and information proved to be difficult for the respondents (Seethamraju, 2011).

5. Conclusions

Two research goals have been achieved in this systematic review: (1) to examine the effect of BSGs on students’ DM at university and (2) to identify the elements that can be developed in the BSG learning experience to promote DM. To the best of the authors’ knowledge, no systematic review has looked at the two research goals of this investigation because previous studies on BSGs had different objectives. Thus, the most important theoretical contributions of this study focus on achieving the goals listed below.
In relation to the first research goal, the outcomes of the analyzed studies suggest that applying BSG learning experiences fosters students’ DM. Following Herbert Simon’s theory, these BSG interventions made it possible to work on the four phases of DM (intelligence, design, choice, and review). Owing to the advantages of using a BSG learning experience, universities in a variety of academic and geographical regions are adopting this strategy more frequently. It should be emphasized that it is crucial for the development of DM to integrate information both inside and outside of the companies simulated in the games, recognizing interdependencies between variables and coordinating decisions (McKone & Bozewicz, 2003; Seethamraju, 2011). Also, since BSG decisions are usually made as a group, good communication is essential. To this end, the studies analyzed promote different initiatives such as presentations, the use of online forums, or voice recognition systems.
In relation to the second research goal, it ought to be mentioned that every study agreed that certain elements of BSG learning experiences should be suggested in light of DM development. In this study, in the discussion section, there are five key elements that need to be adhered to in order to help students enhance their DM through BSG learning experiences.
Additionally, lecturers, teachers, or instructors could use the actual implications of this study as guidance in their classrooms to enhance the teaching and learning process, as could companies where courses are given to employees and in any area where DM is to be promoted. As a result, helpful advice on how to improve DM through BSG learning experiences is included. The instructor can take advantage of the BSG to introduce tools or methods to support strategic DM, for example, explaining game-theoretic ideas like reputation, signaling, and randomized strategies (Yalabik et al., 2012). Students discover that even if there is not a single script that fits all BSG interventions, being able to make risk-free decisions in an environment which is very close to reality in which you can collaborate, improves your DM.
Although the most pertinent databases were included, it is possible that some more papers exist in other databases, and that this could be a limitation of the current study. Additionally, it is possible that some publications are available in other languages; this analysis did not include research that was not published in either Spanish or English. Also, the measurement instruments used in some investigations may have had a greater risk of bias in the research. Ignoring moderating and mediating factors that may affect how well BSGs promotes DM is another limitation covered in some of the chosen research. The present study yielded a total of thirteen publications; subsequent systematic reviews may aid in expanding the generalization of the results upon the publication of other investigations. This article can serve as a basis for future research since the scientific literature has shown that the development of DM via BSGs is an extremely important area that is still growing. As mentioned earlier, the usage of BSGs greatly impacts how students’ DM develops in this area. Future studies should therefore concentrate on current tools like artificial intelligence that have educational implications. Another line of future research is the use of human–computer interfaces in BSGs, such as electroencephalography (EEG) and eye-tracking (ET) devices. In conclusion, given the diversity of the work being done to develop DM through BSGs, this is a topic that is perfect for innovation in line with the assessment recommendations.

Supplementary Materials

The following supporting information can be downloaded at https://www.mdpi.com/article/10.3390/educsci15020168/s1: Table S1: PRISMA 2020 Checklist; Supplementary S2: Standards for Assessing the Quality of Articles. Reference (Page et al., 2021) is cited in the Supplementary Materials.

Author Contributions

Conceptualization, R.K.A. and A.V.; methodology, R.K.A.; formal analysis, A.V.; investigation, A.V.; data curation, A.V.; writing—original draft preparation, R.K.A. and A.V.; writing—review and editing and A.V. and R.K.A. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Conflicts of Interest

The authors declare no conflicts of interest.

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