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Using Behavioral Simulations to Study Strategic Processes

Behavioral simulations are well suited for the study of the processes that underlie strategy formulation and implementation. The authors defend this claim by describing five challenges often confronted in attempts to study strategic processes: (a) measuring variables at multiple levels of analysis, (b) controlling or measuring the context, (c) dealing with history effects, (d) capturing process differences across issues, and (e) linking processes to outcomes. The article describes seven behavioral simulations that are currently available and then discusses the capacity of behavioral simulations for addressing the challenges facing strategic processes researchers. Theoretical and research choice points for selecting among behavioral simulations are identified along with the implications of using behavioral simulations in studies of strategic processes. Limitations of behavioral simulations are also discussed.