To validate prior agent-based models, public disclosure of model code is necessary, but not sufficient. Conceptual model replication, involving independent reproduction of a model without referring to the originator’s code, is crucial for detecting nonconformity between the publication text and the model implemented. We frame and evaluate four scenarios to expose the shortfalls of replication efforts that use the original study’s program code and neglect the published model description. We identify, evaluate, and offer recommendations regarding disparities between the text and the program code that generated the results reported in March’s classic study of exploration and exploitation in organizational learning. Based on our experience replicating his model, we suggest a two-step method of model verification—beginning with replicating the model from the published description, then turning to the program code of the original implemented model to account for divergent results. Exclusive reliance on either the published model description or the original program code does disservice to theory advancement, because disparities between the original conceptual and implemented models go unaddressed.

Sasanka Sekhar Chanda

Strategic Management

Miller K D

Strategy and Management

Industrial relations

Business and International Management

Joint

Fulltext

IIM Indore seeks to be a contextually-relevant business school with world-class academic standards that develops socially-conscious managers, leaders and entrepreneurs. IIM Indore is committed to: Excellence in management education, research, and training, Use of contemporary participant-centric pedagogies and teaching methods, A presence in emerging segments of management education.

IIM Indore

Replicating agent-based models: Revisiting March’s exploration–exploitation study:

Strategic Organization

The difficulty in definitively linking outcomes of managerial action to organizational outcomes has been a festering issue in organizational research. The problem arises because it is not easy to separate the distinctive contributions of managers at intermediate stages, as well as the contribution of external factors beyond the control of managers. Specifically, certain managerial actions focusing on exploratory or exploitative innovation produce an intermediate output, organizational knowledge. From this base of organizational knowledge, further management actions craft the final output that eventually faces the market test. Drawing from complexity concepts, I argue that the probability of correctly fashioning the subset of key elements in the intermediate output may be a good measure of the probability of organizational success. I use March’s iconic computational simulation model to demonstrate the merits of this principle. I model the effect of complexity on managerial intentionality towards exploratory and exploitative innovation. I elicit important insights for research and practice by comparing organizational knowledge outcomes with the outcomes for probability of organizational success, in stable and moderately turbulent environment.

Computational and Mathematical Organization Theory

Inferring final organizational outcomes from intermediate outcomes of exploration and exploitation: the complexity link

Computational simulation modeling is an important approach to formal theory development. It has all the advantages of mathematical models, and is additionally able to overcome problems related to discontinuities and disequilibrium conditions that mathematical models do not handle well. In social science research, a good deal of emphasis is placed on leveraging pioneering models, to further knowledge smoothly. However, two important philosophical paradigms, that of critical realism and scientific realism, sharply differ in terms of what is considered worth preserving and what is considered up for change, in work that follows that of the pioneer. Scientific Realists value knowledge accumulation. Models contradicting key assumptions of a pioneering model may not readily find favor with Scientific Realists. Critical Realists focus on generating new theory by the quickest possible means, particularly in areas where there is a paucity of theory. They favor leveraging the ontological aspects of pioneering models, while being open to contradicting its key assumptions. Thus, notwithstanding the surface sim- ilarity of both traditions promoting research by S. S. Chanda Indian Institute of Management Indore, Indore, India e-mail: sasanka2012@gmail.com S. Ray (&amp;) Indian Institute of Management Calcutta, Calcutta, India e-mail: sougata@iimcal.ac.in computational simulation modeling, knowledge advancement accomplished is of very different kinds, each with its own distinctive set of implications.

DECISION

Formal theory development by computational simulation modeling: a tale of two philosophical approaches

Extant research has provided ambiguous answers to the question as to what constitutes an ideal balance between exploration and exploitation, in stable and turbulent environments. Much of the literature emphasizes controlling organizational actions by means of predictions based on historical knowledge. In our study, we investigate organizational outcomes when such predictions are not possible and managers intentionally focus their firm on either exploratory or exploitative innovation. Using March’s iconic computational simulation model, we find that multiple exploration–exploitation combinations lead to equivalent, maximum organizational knowledge, establishing a rational basis for managerial intentionality toward exploratory or exploitative innovation. We further find that onset of environmental turbulence impacts an organization focusing on exploratory innovation in a way that is different from the way an organization focusing on exploitative innovation is impacted. The former is enabled to carry out an increasing level of its core activity, exploration. The latter is required to dial down its core activity, exploitation. Our findings suggest a resolution to conflicting prescriptions regarding appropriate response to onset of environmental turbulence endemic in the literature.

Journal	Data powered by TypesetStrategic Organization
Publisher	Data powered by TypesetSAGE
ISSN	1476-1270
Open Access	No