Theory development via replicated simulations and the added value of standards

Abstract

Using the agent-based model of Miller et al. (2012), which depicts how different types of individuals’ memory affect the formation and performance of organizational routines, we show how a replicated simulation model can be used to develop theory. We also assess how standards, such as the ODD (Overview, Design concepts, and Details) protocol and DOE (design of experiments) principles, support the replication, evaluation, and further analysis of this model. Using the verified model, we conduct several simulation experiments as examples of different types of theory development. First, we show how previous theoretical insights can be generalized by investigating additional scenarios, such as mergers. Second, we show the potential of replicated simulation models for theory refinement, such as analyzing in-depth the relationship between memory functions and routine performance or routine adaptation.