Agent-based modeling in managerial science: an illustrative survey and study

This article provides an overview of the current state of agent-based modeling in managerial science. In particular, the aim is to illustrate major lines of development in agent-based modeling in the field and to highlight the opportunities and limitations of this research approach. The article employs a twofold approach: First, a survey on research efforts employing agent-based simulation models related to domains of managerial science is given which have benefited considerably from this research method. Second, an illustrative study is conducted in the area of management accounting research, a domain which, so far, has rarely seen agent-based modeling efforts. In particular, we introduce an agent-based model that allows to investigate the relation between intra-firm interdependencies, performance measures used in incentive schemes, and accounting accuracy. We compare this model to a study which uses both, a principal-agent model and an empirical analysis. We find that the three approaches come to similar major findings but that they suffer from rather different limitations and also provide different perspectives on the subject. In particular, it becomes obvious that agent-based modeling allows us to capture complex organizational structures and provides insights into the processual features of the system under investigation. Copyright The Author(s) 2016