Paradigms, Structures, and Simulations: Advancing Theory Building and Model Testing in Management Science

Abstract

The growing complexity of managerial phenomena and the interdisciplinary nature of management science call for more coherent methodological frameworks for theory building and model testing. While management science draws from both technical and social disciplines, its theoretical development remains fragmented and often lacks methodological integration. Previous studies have highlighted inconsistencies between paradigmatic assumptions, modelling strategies, and empirical validation, particularly in the treatment of latent variables. Despite the broad adoption of structural equation modelling (SEM), its potential for bridging theory and empirical evidence in dynamic and virtual contexts remains underexplored. This study aims to conceptualise an integrative approach that connects paradigmatic foundations, structural modelling, and simulation-based testing within virtual environments. By analysing classical and contemporary management paradigms — including functionalist, interpretative, critical, and postmodern perspectives — the paper identifies methodological challenges in aligning theoretical reasoning with empirical analysis. The methodological framework combines SEM procedures, such as confirmatory factor analysis and model fit evaluation, with the use of virtual and simulation-based environments as experimental spaces for theory validation. The findings emphasise that virtual environments enable real-time experimentation, allowing for the iterative refinement of theoretical models under controlled digital conditions. These spaces enhance the reflexivity and reproducibility of management research by enabling researchers to observe the interaction between theoretical constructs and simulated organisational processes. The integration of SEM with simulation techniques demonstrates how theoretical constructs can be dynamically tested and adjusted through virtual modelling. The study concludes that theory building in management science benefits from combining paradigmatic reflection, structural modelling, and virtual experimentation. This triadic framework promotes methodological pluralism, computational adaptivity, and deeper theoretical coherence, suggesting that virtualised modelling environments may become essential tools for future management research and education.