Applying Agent-Based Modeling to Examine Business Strategies – Tools and Examples for Researchers and Practitioners

Scholars have noted that the business world is becoming more complex, creating new challenges for small businesses. Agent-based modeling serves as an emerging tool for small business owners, researchers, and practitioners to better manage this complexity. The purpose of this paper is to explain the fundamental concepts of agent-based modeling and share case studies where agent-based modeling has been used to enhance business and entrepreneurial strategy. Additionally, the paper will introduce two agent-based modeling toolkits, NetLogo and Repast, and it will discuss the opportunities and limitations of agent-based modeling for use in small business research.