Researching ecosystem dynamics: system dynamics and agent-based modelling as tools for entrepreneurial ecosystem research

What is it about?

Traditional methodologies often fail to capture the complex dynamics of entrepreneurial ecosystems. This chapter introduces system dynamics (SD) and agent-based modelling (ABM) as advanced tools for analysing and theorising about these ecosystems. These approaches offer an ecologically grounded perspective aligned with the realist nature of ecosystems. SD provides a top-down view, capturing internal dynamics and external influences, while ABM offers a bottom-up lens, focusing on detailed interactions among actors. The chapter discusses the strengths, applications, and limitations of both methodologies, highlighting the potential of hybrid simulations. By integrating these approaches with other research techniques, we promote the development of a comprehensive understanding of entrepreneurial ecosystems, incorporating both subjective and objective viewpoints. A high-level tutorial on model development is included, guiding academics and policymakers towards a profound, ecologically informed understanding of entrepreneurial ecosystems.

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