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Purpose

The purpose of this paper is to show how rapidly evolving information technology has dramatically changed the knowledge dissemination process. However, many of them lack a generic evaluation process to verify the system's performance. In an attempt to solve this problem, this study seeks to propose an agent‐based model to provide a dynamic, flexible framework for performance evaluations of e‐learning projects.

Design/methodology/approach

The paper proposes an agent‐based model which comprises a learning model, balanced scorecard and option‐pricing approach to evaluate the performance of an e‐learning project.

Findings

E‐learning could be the paradigm shift of traditional education. Thus, the paper provides organizations with a methodology to deliberately evaluate their e‐learning projects by treating it as a continuous improvement process.

Originality/value

The original contributions in this paper are: application of a balance scorecard to weigh different perspectives; application of a real options approach for risk management of e‐learning projects; construction of an agent‐based system for autonomous qualitative/quantitative information gathering.

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