Computational Simulation

Abstract

A significant and growing set of approaches in strategic management research are centred on the use of computational models realized as simulations. We provide a characterization of what constitutes a computational simulation and enumerate the possible roles computational simulations can play in strategic management research. By exploring the broad fundamentals and issues underlying the use and contribution of computational modelling, we hope to help facilitate the use of simulation in providing insight into key issues of strategic management. We provide a brief examination of the history, benefits, uses and forms of computational simulations, and explicate the concerns and issues that lie at the core of any simulation development effort. Definition A computational simulation is a dynamic, process-oriented model instantiated on a computer. These can range from traditional economic models (expressed as equations) to more abstract constructs and processes (expressed as objects, agents, operators and algorithms). A significant and growing suite of tools and approaches in strategic management research are centred on the use of computational models realized as simulations. However, as the study of strategic management itself is a moving target, it is important to understand the broad fundamentals and issues underlying the computational simulation approaches in order to intelligently discern how they can contribute to strategic management research.