The threat of organizational crises cannot be overlooked in today's complex business environment. During crises, organizations encounter unique, threatening and stressinducing situations in which critical decisions must be made constantly in a timely manner based on limited information. Nevertheless, there have been very few studies engaging in exploring the theme of knowledge transfer in the context of managing organizational crises. Consequently, this study attempts to explore this issue with reference to a product recall crisis of a motorcycle manufacturer using the method of system dynamics modelling. The research findings illustrate the multiple knowledge transfer mechanisms used and their influence on organizational performance during crises as a means of distributing critical knowledge and facilitating the development of collective understanding within organizations. Future studies which aim to explore the dynamics of different types of knowledge being processed by means of various knowledge transfer mechanisms during crises are encouraged. Copyright # 2010 John Wiley & Sons, Ltd.Keywords knowledge transfer; organizational crisis; system dynamics INTRODUCTION Knowledge can be considered as a justified notion derived from a combination of individual experience, values, contextual information, expert insight and grounded intuition, which can enhance the ability to take effective actions (Nonaka, 1994;Davenport and Prusak, 1998). Prior studies indicate that knowledge is different from other organizational resources, since it, once created, can be repeatedly combined and recontextualized to generate new knowledge through the continuous enforcement of the adaptive processes, such as higher order learning, and then can provide organizations with new guidelines for supporting their subsequent strategic decision making (e.g. Grover and Davenport, 2001;Sambamurthy et al., 2003). Organizational crises, which can be defined as low frequency, high consequence events that can significantly hinder organizations from achieving their fundamental goals or continuing to operate successfully (Pearson and Clair, 1998), are generally unavoidable for most organizations over their entire lifetime (Elsubbaugh et al., 2004). Organizational crises tend to generate task demands for an organization that exceed, or come close to exceeding, an organization's abilities to handle them without considerable additional resources (Smith, 2005). Additionally, the regular operational mechanisms and organizational structures may go down or be disrupted, making them unable to function effectively to support the individuals making critical decisions during crises (Dearstyne, 2007). This implies that during crises organizations encounter a unique, threatening and stress-inducing decision-making environment that must be dealt with consistently in a timely manner (Pearson and Clair, 1998). When there is time pressure in situations with high-level ambiguity and uncertainty, decision makers tend to accept lower quality information/knowledge that is mo...