In today’s business education landscape, simulations have become essential for driving competency development. These interactive tools replicate actual-life decision-making environments and empower students to develop competency development in areas like leadership, Capitalistic analysis, critical thinking, and team effort.
However, one crucial question remains largely unaddressed: Should strategy theory be taught before or during simulation play? The answer deeply impacts how simulations contribute to competency development.
A recent study in the Journal of Behavioral and Applied Management (Cook & Wilson, 2024) examined this question. Two groups of students were compared—one group studied strategy theory before simulation (TB4), while the other group learned theory while playing the simulation (TWP). The TB4 group suggesting powerful competency development, as they demonstrated remarkably higher simulation performance.
Why It Matters
The goal of simulations is not simply engagement—it’s measurable growth. Students should leave the experience having progressed significantly in their competency development. From analytical thinking and collaboration to resilience and decision-making, these are the skills that define capable professionals.
When simulations are introduced after students have already internalized essential frameworks and concepts, the results are more powerful. The simulation becomes a proving ground, not a guessing game. And competency development becomes not just a goal—but a visible outcome.
Simulations drive competency development by giving students the chance to put theory into practice.
In essence, strategy theory is knowledge input. Competency development is the output that results from applying that knowledge effectively.
Why Strategy Theory Before Simulation Improves Competency Development
The TB4 approach enhances competency development by building a strong conceptual foundation before the simulation starts. When students understand strategic structure beforehand, they are better provide to navigate the complexities of simulations.
This method aligns with cognitive load theory, which explains that the brain can only process a limited amount of information at once. Without prior knowledge, simulations can overwhelm students, impeding competency development. TB4 shifts strategy knowledge into long-term memory, allowing students to focus on decision-making and execution, thereby boosting competency development.
Why the TWP Approach Undermines Competency Development
While TWP (Theory While Playing) promotes just-in-time learning, it hinders competency development by splitting student focus. The study found that students in the TWP group struggled to catch up. Their lack of early strategic understanding led to inconsistent performance and weaker competency development outcomes.
Early decisions in simulations are crucial. It can limit opportunities towards recovery as poor initial choices can affect later rounds. This can hold back a repeated learning that drives competency development.
Additionally, TWP students often experience overwhelmed. This negatively impacted individual’s motivation, which is essential towards sustained competency development. Instructors must ensure that simulations build confidence, not confusion if the goal is strong competency development.
Simulations: Tools for Competency Development, Not Theory Replacement
Simulations are experiential tools meant to reinforce learning. They should not replace foundational strategy instruction. To foster real competency development, simulations must be paired with prior theory.
By teaching strategy theory first, educators allow simulations to serve their intended purpose—facilitating competency development. Students move beyond theory into applied learning, testing, and refining their decisions in a controlled, feedback-rich environment.
This progression—from knowledge to action—is the cornerstone of authentic competency development.
Educator Strategies to Maximize Competency Development
For simulations to be effective in promoting competency development, educators should consider the following:
- Frontload theory: Teach strategic frameworks before the simulation begins to support early-stage competency development.
- Practice rounds: Use practice simulations to help students acclimate, fostering confidence and early competency development.
- Executive briefings: Offer targeted feedback during simulations to reinforce theory and support ongoing competency development.
- Encourage reflection: Assign journaling or debriefs that connect decisions to learning outcomes—deepening competency development.
- Integrate theory in simulation: When time allows, revisit key concepts mid-simulation to enhance competency development through repetition.
These steps ensure that every stage of the learning process contributes to meaningful competency development.
Conclusion: Prioritize Theory to Drive Competency Development
The research is clear: teaching strategy theory before simulation delivers superior outcomes for competency development. Students who begin with a strong theoretical foundation are more confident, consistent, and capable of applying their learning.
Simulations are most effective when used to refine and reinforce—not introduce—strategic concepts. When thoughtfully implemented, simulations become powerful engines for competency development, enabling students to transition from theoretical learners to capable business leaders.
If you’re an educator designing simulation-based coursework, prioritize theory first. It’s not just good pedagogy—it’s the most reliable way to maximize competency development.