infonet-economy

System dynamics (SD) simulation supports the identification of interacting feedback processes guiding system behavior in social systems; but its contribution to theorizing on multi-level alignment processes of socio-technical transition is unclear. Our purpose is to clarify the benefits and limitations of an SD-based research strategy for theorizing on sustainability transitions. First, we explicate why and how the linkage of SD simulation with the multi-level perspective (MLP) helps to overcome some limitations of narrative approaches. Second, we offer for such integrative transition simulation (ITS) journeys a tailored method that provides methodical guidance. We found that the structural analysis methods and tools offer the unique value proposition of ITS. They help to explicate dominating causal circularities of multi-level alignment processes and to test the behavioral consequences. We illustrate how this approach has supported the development of a process theory about iterating cycling through sequences of innovation, diffusion, and standardization in energy-efficient (ee) housing. We conclude that the method supports cross-case comparison and generalization of single findings. In addition, we suggest that ITS may enhance discussion on circular causalities and sequences in sustainability transitions; this kind of knowledge is important for the coordination and timing of policy and strategy making in sustainability transitions.