Rethinking Interactive Control Systems : An Applicability of Agent-Based Modeling

The purpose of this study is to encourage further research to examine how and why interactive control systems (ICSs) successfully derive new strategies from their emergent process. We reviewed the prior studies to highlight unsolved research issues. The review indicates that this accumulation of empirical studies has significantly progressed the theory development regarding ICSs. However, the focus on the internal mechanism of ICSs is limited. Thus, the mechanism has remained untouched, which we call a black box, since the concept was theorized in Simons' seminal works. In the black box, we identify the three tensions that are closely related to strategic uncertainties, managers' characteristics, and information flows. This study emphasizes unveiling the internal mechanism as a significant research issue because while the tensions are inherently attributed to the interactive control process, they could make the process vulnerable as well as emergent. To unveil the black box, this study introduces a method of computational simulation, agent-based modeling (ABM). ABM is used to model an intricate network among individuals or emergent and complex systems. Specifically, ABM can demonstrate methodological advantages to allow the modelers to test under virtual realities, handle data at full ranges, and repeat the same experiments many times. Finally, this study presents essential points to an application of ABM to the interactive control process: super-agent, agents' characteristics, organizational structure, and learning. In conclusion, we argue that focusing on these issues in modeling the process of ICSs can improve our understanding of the internal mechanism of ICSs