Developing Theory Through Simulation Methods by Jason P. Davids et al. is aimed at investigating when and how simulation methods can be used in theory development. The research starts with providing background on the science of simulation theory, then it turns to the basic steps of conducting simulation research (selecting research questions, choosing a computational approach, developing experiments) and ends with a discussion of the strengths and weaknesses of simulation research and guidelines for its evaluation.
The paper is valuable for the contributions that the authors provide: a roadmap for developing theory through simulation and “positioning simulation methods in the “sweet spot” between theory creating using inductive case methods and formal modeling, and theory testing using multivariate statistical techniques.” (Davids et al, 1991, p.497) We believe that most of all the average reader of the article can benefit from the authors’ discussion of strengths and weaknesses for developing theory with simulation, as he or she gets an objective analysis of the problem under consideration.
One more study conducted by another group of researchers (Harrison, Lin, Caroll, Carley) called Simulation Modeling in Organizational and Management Research also focuses on simulation modeling, but it investigates the problem through the management perspective. The research aims at promoting an understanding of simulation methodology and developing an appreciation of its potential contributions to management theory. The background on the science of simulation that the research opens with gives the reader an overview of the simulation methodology’s potential for contributing to management theory. Then the authors claim that computer simulation can be a powerful way to do science.
The research explains why simulation can be a particularly useful research tool for management theorists. The authors provide the reader with both benefits and limitations of the simulation research. The Figure that the paper contains suggests a graphical presentation of the role of simulation modeling in management research that contributes to the reader’s understanding of the problem under analysis. Still, we are inclined to believe that the paper lacks a discussion of concrete techniques that will encourage management scholars to become users of simulation methods.
The research Exploration and Exploitation in Organizational Learning conducted by James G. March considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. The paper investigates adaptive processes related to exploitation of existing processes/knowledge and exploration of new choices and develops an argument that “adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run.” (March 1991, p.71) Though we do realize the complexity of the research conducted, we consider that the manner of its presentation is rather complicated and is difficult to understand.
The author makes many references to other works with detailed evaluation of its findings and this presents some difficulty for the reader. One would benefit more from the paper if it is told in a more simple language focusing more on the actual problem under analysis.
Complexity Theory, Market Dynamism, and the Strategy of Simple Rules by Jason G. Davis et al. explore the fundamental tension between too little and too much structure. After examining the relationship between the amount of structure and performance in dynamic environments the authors admit “the importance of concepts from complexity science surrounding the organization of structure, phase transitions between too much and too little structure, and cascading failure from even small perturbations in the environment and organization.” (Davis, 2007, p. 44) Further studies are needed in investigating an emerging theory for how organizations adapt that builds on the insights of complexity science.
References
Davis, J. P. (1991). Developing theory throughout simulation methods., Academy of Management Review. 32(2), 480–499.
Davis, J. P. (2007). Complexity theory, market dynamism, and the strategy of simple rules. Working Paper.
Harrison, J. R. et al.(2007). Simulation modeling in organizational and management Research. Academy of Management Review. 32(4), 1229–1245.
March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, l2 (1), 70-87.