A number of emerging challenges including globalization, economic pressures, and the changing nature of work have combined to create a business environment that demands innovative, flexible training solutions. Simulations are a promising tool for creating more realistic, experiential learning environments to meet these challenges. Unfortunately, the current literature on simulation-based training paints a mixed picture as to the effectiveness of simulations as training tools, with most of the previous research focusing on the specific technologies used in simulation design and little theory- based research focusing on the instructional capabilities or learning processes underlying these technologies. This article examines the promise and perils of simulation-based training, reviews research that has examined the effectiveness of simulations as training tools, identifies pressing research needs, and presents an agenda for future theory-driven research aimed at addressing those needs.
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