Should knowledge be distorted? Managers' knowledge distortion strategies and organizational learning in different environments

Organizational learning provides a sustainable competitive advantage for an enterprise facing a highly volatile environment, and managers' knowledge sharing strategies are of vital importance to organizational learning. This study systematically evaluates the effects of managers' knowledge distortion types (i.e., misrepresentation and omission), distortion levels, and distortion preferences in a formal organizational context under various environments. Multi-agent simulation results demonstrate that a slight level of managers' knowledge misrepresentation and a high level of managers' knowledge omission are beneficial in a closed system. With increasing turnover rate, both misrepresentation and omission are detrimental. Moreover, in an open system with environmental turbulence, misrepresentation is valuable to performance, while omission is neutral. In general, misrepresentation plays a leading role in the simultaneous combination of two distortion strategies. Implications for future research and practice are discussed.