The Effect of Incentive Mechanism on Knowledge Transfer Network: An Agent-Based Model Approach

Knowledge transfer plays a vital role in the growth and sustainability of organizations. It also creates opportunities for employees to work together and share ideas which are helpful for their professional development. Organizations can keep innovating, improving, and competing in a rapidly changing environment if they maintain knowledge properly. Unfortunately, rational individuals tend only to participate in knowledge transfer if the costs needed is well compensated both internally or externally. Incentive is one of the external drives that companies usually apply to stimulate knowledge transfer. This research aims to analyze the effects of incentive mechanisms on knowledge transfer activities using agent-based model approach. Based on the interaction among agents, we construct a knowledge transfer network. The result suggests that incentive mechanism positively correlated with knowledge transfer efficiency. However, the effect is not significant to change the network structure.