PurposeAlthough knowledge transfer in the context of projects and project-based organizations (PBOs) has gained increasing attention from academia and industry, it is not clear how knowledge transfers from projects to their parent PBOs. This research aims to explore the main factors influencing knowledge transfer from projects to their parent PBOs, and analyze how these factors integrate the transfer process as system components using the system dynamics (SD) method.Design/methodology/approachBased on the literature review, investigation and interview, this paper adopts the event analysis to obtain the influencing factors from historical cases and establishes a conceptual model of knowledge transfer from five dimensions, which simultaneously considers the knowledge sender, knowledge receiver and the relationship between the knowledge sender and receiver, knowledge features and transfer context. Then, the relationships between variables in the qualitative model were clarified, and a quantitative model including seven feedback loops was established using the SD model. Lastly, the system simulation and sensitivity analysis of the main parameters were realized in Vensim PLE software.FindingsThe simulation analysis results show that the model can simulate the knowledge transfer process from projects to the PBO to a certain extent. This research fully demonstrates the impact of variables from five dimensions on knowledge transfer and incorporates the knowledge gap and transfer threshold in the research category. Moreover, the rationality of seven feedback loops proposed in the model was verified. And the effects of various factors on the amount of knowledge transferred and the PBO's knowledge stock were examined through sensitivity analysis. Furthermore, recommendations for developing an integrated knowledge transfer mechanism of PBOs and projects to enhance transfer effect are offered.Research limitations/implicationsThis research provides other researchers with a systematic understanding of transfer process from projects to PBOs, and insight for further research on knowledge transfer in project and organization contexts. Furthermore, this study guides researchers to focus on the causal processes that constitute knowledge transfer and explores the expected and unexpected phenomena generated over time. However, some variables involved in the transfer process are simplified, and the establishment of a more complex dynamic model needs further research and discussion.Practical implicationsBy establishing a simulation model for knowledge transfer from projects to their parent PBOs, this study helps project teams and PBOs grasp the overall picture of the transfer process. Especially, this paper provides target-oriented recommendations for project and PBO managers to implement effective knowledge transfer practices, which have certain practical values for knowledge cultivation, coordination, reuse and innovation in the organization.Originality/valueThis study contributes to knowledge management and project management literature by simulating the knowledge transfer process from projects to their parent PBOs. Additionally, this paper provides a reference for PBO and project managers to establish an integrated knowledge-transfer mechanism in the work process and comprehensively implement effective knowledge transfer practices.