Computer Simulation Methodology in Business Dynamics Research
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Abstract
Nowadays, managing business deals largely with high degree of complex environment. From an academic viewpoint, understanding such complexity is somewhat limited using traditional methodological approaches such as causal models and structural equation modeling. This article introduces a relatively well-developed technique in natural science, namely computer simulation, as an alternative to business dynamics researchers. The major advantage of simulation is that organizational interactions and changing economic landscape can be visually simulated. Thus, this method helps explain complex and dynamic phenomena, i.e., disruption. Although computer simulation has long been a useful method applied in various disciplines, conducting business dynamics research using this technique has received less attention. This might be due to a lack of systematic knowledge gathering related to this subject. This article aims to fill this gap in order to take advantage of simulation by using computer for operations research.
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