This paper describes a new case design methodology which is based on Agent Based Modeling. Agent-Based Models are useful for describing and understanding emergent behavior of organizations. However, they tend to be abstract and insufficient for explaining real phenomena in organizations. Therefore it is useful to build a methodology for testing the model’s explanation capability through model based case design. Could-be cases are created based on the behavior of the model to confirm the model’s limitation of description comparing with descriptive cases. The model verification and validation methodologies have been established, however the method of testing the model’s explanation capability has not been established sufficiently.
The purpose of the model is to analyze the phenomena which are inextricably linked with each other, such as Kaizen activities and organizational deviation. Kaizen and deviation are both activities in business firms to break standards in operations. However, it is assumed that the former and the latter are different in the external utilities. Under the assumptions, an agent based model with applying hierarchical utility landscapes is developed, and simulations are conducted in order to examine the emergence process and causes of Kaizen and deviation. And the simulation result is confirmed through the proposed method. This paper also presents the advantages of model based case design comparing to descriptive case design.