Abstract for: Impacts of Knowledge Management on Customers loyalty: System Dynamics Approach

In today’s competitive business environment, those organizations are approaching excellence when they achieve acceptable results besides providing appropriate infrastructures and following right processes. The one of these results is customers’ loyalty. One of organization infrastructures is Knowledge Management (KM), which is gaining increasing attentions nowadays regarding the soaring significance of knowledge resources. Because Knowledge Management affects on customers’ loyalty; in this article, we review the effect of KM on customers’ loyalty. In order to review this relation, a comprehensive model is required, which should be able to capture all aspects of KM. One of such models is Knowledge Management Assessment Tool (KMAT). Also, a comprehensive model is required to capture all aspects customers’ loyalty. The such models are Excellence models. Excellence models, such as European Foundation of Quality Management (EFQM), try to establish a tradeoff between enablers and perceptions in evaluating organizational performance. This research is an effort to find the relationship between knowledge management and customers’ loyalty through system dynamics tool. In other words, this research exploits system dynamics in order to measure the effects of KM on customers’ loyalty using mentioned tool based upon a combination of KMAT and EFQM.