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March

by Elio Marchione (Submitted: 01/23/2008)

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Download March
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(You can also run this model in your browser, but we don't recommend it; details here.)

WHAT IS IT?

In this section we briefly present a agent-based simulation models (March, 1991, by analyzing the relation between exploration and exploitation in organizational learning processes.
In the classical March (1991) model the mutual learning between an organization and its members is considered as an important driver of the exploration-exploitation trade-off. The key futures of the model are the followings:
- there is an external Reality, described as having m dimensions, each of which has a value of 1 or 1(always green);
- at each time period, beliefs about Reality are held by each of n Individuals in an organization and by an organizational Code;
- individuals modify their beliefs as a consequence of a socialization process mediated by the organizational Code (blue = negative matching; green = positive matching);
- at the same time, the organizational Code (at first white) adapts to the beliefs of those Individuals whose beliefs match Reality on more dimensions that the code.
- On the rigth side there are the scores, calculated as ((number of positive matching dimensions / Reality Complexity) * 100)(cyan);

HOW IT WORKS

In this simulation model, exploration is intended as a slow learning from the organizational Code, while exploitation is a rapid learning of both Individuals and of organizational Code.
In his experiments, March analyze the influence of different speed rates of Individuals and Code learning on global organization learning performance, also considering the role of personnel turnover and of external environment turbulence.

HOW TO USE IT

Varyng the Parameters:
Probability of socialization & learning from OC = socialization.P1
Probability of Organizational Code learning = learning.P2
Probability of personnel turnover = turnover.P3
Probability of reality turbulence = turbolence.P4

Reality Complexity = reality-dimension
Size of Organization = actors-number
(if you change Reality Complexity and/or Size of Organization, remember to set a new world-size-x and world-size-y)

Press setup and go, and observe organizational behaviour.

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