Agent-based simulation in management and organizational studies: a survey

Nelson Alfonso Gómez-Cruz,Francisco Fernando Ortega Hurtado,Isabella Loaiza Saa

doi:10.1108/ejmbe-10-2017-018

Abstract

Purpose The purpose of this paper is to provide a comprehensive survey of the literature about the use of agent-based simulation (ABS) in the study of organizational behavior, decision making, and problem-solving. It aims at contributing to the consolidation of ABS as a field of applied research in management and organizational studies. Design/methodology/approach The authors carried out a non-systematic search in literature published between 2000 and 2016, by using the keyword “agent-based” to search through Scopus’ business, management and accounting database. Additional search criteria were devised using the papers’ keywords and the categories defined by the divisions and interest groups of the Academy of Management. The authors found 181 articles for this survey. Findings The survey shows that ABS provides a robust and rigorous framework to elaborate descriptions, explanations, predictions and theories about organizations and their processes as well as develop tools that support strategic and operational decision making and problem-solving. The authors show that the areas that report the highest number of applications are operations and logistics (37 percent), marketing (17 percent) and organizational behavior (14 percent). Originality/value The paper illustrates the increasingly prominent role of ABS in fields such as organizational behavior, strategy, human resources, marketing and logistics. To-date, this is the most complete survey about ABS in all management areas.

Highlights

Today’s markets and organizations are complex systems (CS)
We present a non-systematic survey of the main areas in agent-based organizational simulation (ABOS) encompassing articles published between 2000 and 2016
Concentric – an agent-based simulation (ABS) consulting firm – claims that it was able to predict the number of subscriptions for a video streaming website with less than 1 percent error

Summary

Introduction

Today’s markets and organizations are complex systems (CS). CS are made up of heterogeneous elements that interact with each other and the environment, generating interdependencies across multiple spatial and temporal scales that are difficult to understand, predict and control (Boisot and Child, 1999). ABS can be considered an approach to modeling, a computational tool, a methodological framework or an analytic method It is better understood as a new paradigm of computational thinking that is decentralized, interactive, dynamic, generative and emergent (Wilensky and Rand, 2015; Epstein, 2007). Chen et al (2013) elaborated a review of ABS applications for the management of value chain risks According to these authors, the volatility of the environment and its increasing complexity has made that up to 75 percent of the operation costs depends on the management of the supply network. Diffusion models study adoption behavior and social influences to understand the role of heterogeneity, interaction dynamics, network effects and promotion strategies. The environment is uncertain and often includes a non-reducible spatial component

General purposes of ABOS

Findings

Conclusions