firmom

Firmom is a term used in organizational theory and systems modeling to describe a modular framework for representing a firm as an integrated system of actors, resources, and processes. It focuses on formal decision rules, interaction protocols, and the feedback loops that connect internal operations to external markets.

Origin and usage: The term has appeared in academic discussions since the mid-21st century and is typically treated as a generic concept rather than a specific software package or standard. It is often used to compare different organizational designs by modeling how entities, such as departments and suppliers, coordinate activities under constraints.

Core components of a firmom model typically include an agent layer that represents individuals or units, a resource ledger to track assets and inputs, a constraints and governance module, and an interface layer for data exchange with external systems. The approach supports modular composition, enabling researchers to swap implementations without altering the overall framework.

Applications: Firmom has been used to simulate supply chains, production scheduling, and strategic planning under uncertainty. It is employed in teaching to illustrate how organizational structure affects performance, and as a research tool for comparing policy interventions and market interactions.

Limitations and variants: Critics note that high-level abstraction can obscure operational details, while proponents argue that modularity improves transparency and reusability. Variants of firmom emphasize different modeling formalisms, such as agent-based rules, process algebras, or hybrid discrete-continuous dynamics.