System Dynamics as Model-Based Theory Building

This paper introduces model-based theory building as a feature of system dynamics (SD) with large potential. It presents a systemic approach to actualizing that potential, thereby opening up a new perspective on theory building in the social sciences. The question addressed is if and how SD enables the construction of high-quality theories. This contribution is based on field experiment type projects which have been focused on model-based theory building, specifically the construction of a middle-range theory - not a general one. The process of model building and validation is analysed from a theory-building perspective. The resulting theory is evaluated by means of a set of criteria for high-quality theories. As a conclusion, the insighths thus gained are presented and condensed in a tentative set of heuristic principles for model-based theory building.