Integration of Behavioral and Operational Elements Through System Dynamics

Morrison J. B., R. Oliva. 2017. Integration of behavioral and operational elements through System Dynamics. In Donohue K., E. Katok, S. Leider (eds.), The Handbook of Behavioral Operations. Wiley, New York (Forthcoming).

Mays Business School Research Paper No. 2997235

36 Pages Posted: 7 Jul 2017

See all articles by J. Bradley Morrison

J. Bradley Morrison

Brandeis University - International School of Business

Rogelio Oliva

Mays Business School, Texas A&M University

Date Written: June 20, 2017

Abstract

In this chapter, we show how the tools and principles of system dynamics facilitate the integration of operations management and behavioral sciences. At its core, system dynamics develops process-based theories that explicitly examine the interactions between the physical and institutional structures of operational systems and the behavioral decision rules of the agents in those systems. We first describe the system dynamics perspective on decision-making in dynamic environments. We then present a set of guiding principles to formulate behavioral decision making and describe the methods used by system dynamists to gather data to formulate those decision rules. We used two detailed formulation examples from operational contexts to show how the formal representation of the decision-making process was used to gain operational insights through simulation and formal analytical techniques. The chapter concludes exploring potential areas of future research in behavioral operations leveraging the strengths of system dynamics.

Keywords: behavioral decision making, behavioral operations, system dynamics, grounded development of decision-making process

Suggested Citation

Morrison, J. Bradley and Oliva, Rogelio, Integration of Behavioral and Operational Elements Through System Dynamics (June 20, 2017). Morrison J. B., R. Oliva. 2017. Integration of behavioral and operational elements through System Dynamics. In Donohue K., E. Katok, S. Leider (eds.), The Handbook of Behavioral Operations. Wiley, New York (Forthcoming). ; Mays Business School Research Paper No. 2997235. Available at SSRN: https://ssrn.com/abstract=2997235

J. Bradley Morrison

Brandeis University - International School of Business ( email )

Mailstop 032
P.O. Box 549110
Waltham, MA 02454-9110
United States
781-736-2246 (Phone)
781-736-2269 (Fax)

Rogelio Oliva (Contact Author)

Mays Business School, Texas A&M University ( email )

430 Wehner
College Station, TX 77843-4218
United States

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