Validation of Business Management Model for Small and Medium Sized Enterprises (SMEs) Based on System Dynamics

Abstract

The purpose of this research is to demonstrate the validation of a business management model designed according to the methodology of system dynamics, which is applied exclusively and specifically to small and medium enterprises (SMEs). The validation of the model makes it possible to be sure that it is in accordance with the organizational needs of this type of company. For the validation of the model the data collection technique was applied, using information selected and obtained during a specific time period, analyzing that such information is relevant, reliable and correct; considering that, when studying a certain system, it is convenient to analyze its behavior from representative data of what is expected to be its normal operation and not with data corresponding to extreme situations.
The combination of the system dynamics methodology and the data collection technique to validate the generated model makes it possible to carry out simulations which allow SMEs to ratify or rectify the administrative management policies that they apply to their companies.