Agent-Based Modeling of Safety Proactivity in SMEs

The study begins by highlighting a significant gap in existing literature: the lack of comprehensive models explaining the interplay between small-scale enterprises (SSEs), their employees, the public, and the government concerning workplace safety. To address this gap, the researchers adopt a bottom-up agent-based modeling (ABM) approach. This methodology allows for a detailed examination of the interactions between these key stakeholders, focusing on how employee behaviors influence safety outcomes. The research specifically investigates the impact of employee protection-oriented safety proactivity behaviors (EPOS-PB), which encompasses actions like whistleblowing and public exposure of safety violations. By using ABM, the study aims to create a more realistic and nuanced representation of the factors contributing to safety levels in SSEs, going beyond simpler models that fail to account for the complex interplay of numerous agents and their attributes. The chosen approach enables a dynamic understanding of how various safety-related behaviors can lead to changes in the overall safety production level.

The research delves into the key factors influencing safety production levels within SSEs. It acknowledges the significant role of owner-managers, often responsible for both production and safety. The study notes that their limited time and resources can lead to safety issues being addressed reactively rather than proactively, and that the owner-managers' decisions regarding safety are frequently personal rather than based on formal directives. This is further complicated by the heterogeneity of SSEs, leading to diverse attitudes and strategies towards safety regulations and inspections. The study highlights the problem of underreporting of safety incidents due to lack of investment and focus on survival and development. Data is presented indicating that SSEs experience a disproportionately higher rate of accidents and injuries compared to larger enterprises. Insufficient safety investments are linked to a lack of safety awareness and realistic financial constraints. These factors all contribute to the overall safety production level, forming the foundation for the ABM model's parameters.

A central focus is the significant role of employee EPOS-PB in enhancing safety production levels. The research emphasizes how actions such as whistleblowing and public exposure can influence safety outcomes. Whistleblowing, the act of reporting safety violations, is explored as a crucial mechanism for improving safety within SSEs. The study considers the various forms whistleblowing can take, including exposing safety information to the public or directly reporting non-compliant owner-managers. Furthermore, the impact of public reputation is considered; a positive public image can influence purchasing behavior, while negative publicity following accidents or safety violations can cause decreased sales. The study also acknowledges employees' options to leave their jobs or demand pay raises when facing unsafe working conditions, illustrating further the complex interplay between employee actions and SSE safety.

The study describes the design and development of a formal ABM model to simulate the impact of EPOS-PB on safety production levels in SSEs. This model incorporates the major attributes of all key stakeholders, including owner-managers, employees, the public, and the government. It takes into consideration the different channels of information flow; including the potential for employees to bypass owner-managers by directly reporting safety violations to the public via social media (SNS) and mobile messaging platforms (MMP). Various scenarios were simulated, reflecting different employee responses to inadequate safety conditions (e.g., remaining silent, whistleblowing, leaving the job, or demanding a raise). These scenarios allowed the researchers to analyze the impact of these behaviors on safety production levels, profitability, and public perception. The model’s design enables a more realistic representation of how SSEs make decisions and adapt their safety practices.

The study explicitly states its use of agent-based modeling (ABM) as the primary methodology to analyze the complex interactions influencing safety production levels in small-scale enterprises (SSEs). The researchers chose ABM because existing methods, such as the hybrid structural interaction matrix (HSIM) mentioned in the document, fell short in capturing the integrative effects of diverse agents and their behaviors on safety. ABM allows for the detailed simulation of the interactions between employees, owners, the public, and the government, acknowledging the dynamic and interconnected nature of these relationships. This bottom-up approach enables a more realistic representation of the multifaceted factors that shape safety outcomes within SSEs compared to simpler, more static models. The choice of ABM is justified by its capability to capture the complex, interconnected nature of the problem, moving beyond a purely quantitative approach to model the behavior of individual agents and their collective impact.

The ABM model incorporates several key agents whose behaviors and attributes significantly impact the safety production level of SSEs. These agents include owners, designers, contractors, supervisors, and the government. The model analyzes the influence of these agents using cause-effect loops and system dynamics to determine the impact of their actions on overall safety levels. Owner-managers, in particular, are highlighted as key decision-makers with significant control over safety investments and reporting practices. The actions and responses of employees are another critical aspect, including their decision-making around reporting safety issues (whistleblowing) and their potential responses to unsafe work conditions (leaving the job or demanding a raise). The public and government also play important roles, shaping public perception and implementing regulations. The model accounts for the heterogeneity of SSEs, recognizing that their sizes, resources, and approaches to safety vary considerably.

While the core methodology is ABM, the study acknowledges and incorporates data and insights from existing research. The document mentions referencing prior studies by Hasle et al. (2010) and MacEachen et al. (2010), particularly regarding the challenges of safety management in SSEs and the decision-making processes of owner-managers. These references contribute to the model's parameterization and validation by providing context for the behavior of specific agents. Further, the study uses existing research to highlight the disproportionately high rate of accidents and injuries in SSEs compared to larger businesses, informing the model's initial conditions. The integration of this external data alongside ABM simulation enhances the model's realism and its ability to reflect the complexities of real-world safety issues within SSEs. It adds depth to the model's capabilities, informing the various parameters and expected outcomes.

The simulation results reveal a stark contrast between scenarios where SSEs prioritize productivity alone and those where employee protection-oriented safety proactivity behaviors (EPOS-PB) are significant. When SSEs focus solely on productivity, employees tend to remain silent about poor working conditions, and government oversight is lacking. This results in lower safety levels and a lack of incentive to improve. Conversely, simulations incorporating EPOS-PB, such as whistleblowing and public exposure via social media and mobile messaging platforms, demonstrate a significant positive impact on safety production levels. These scenarios show that proactive employee actions can trigger necessary changes within SSEs, leading to improved safety outcomes. The simulations also show a direct correlation between employee actions and the resulting impact on the safety production level and the financial success of the SSEs.

The simulations explored different scenarios representing various employee responses to inadequate safety conditions. These included scenarios where employees remained silent, chose to whistleblow, exposed safety information to the public, or opted to leave their jobs or demand pay raises. Each scenario produced varying results regarding the safety production level and profitability of the SSEs. The results highlighted that a lack of proactive employee engagement, combined with a lack of regulatory oversight, leads to the lowest safety levels and significantly reduced profits for SSEs. In contrast, scenarios where employees actively took measures such as whistleblowing or seeking better conditions resulted in a higher safety production level, even if the immediate financial consequences were initially negative, indicating a long-term benefit from prioritizing safety. The comparison of these scenarios provides valuable insights into the effectiveness of different employee responses in driving safety improvements.

The simulation results strongly indicate a direct correlation between the safety production level of SSEs and their profitability. In scenarios where safety was neglected due to an overemphasis on productivity and a lack of employee engagement and regulatory oversight, the simulated SSEs showed extremely low profits, often leading to bankruptcy. Conversely, scenarios incorporating significant employee EPOS-PB, like whistleblowing, resulted in increased safety production levels and although sometimes experiencing initial profit reduction, eventually demonstrated a positive trajectory. The financial outcomes clearly demonstrated that a focus solely on productivity without sufficient attention to safety ultimately led to unsustainable business practices. This highlights the importance of incorporating safety considerations into business strategies for long-term financial success in SSEs. The comparison of profits across various scenarios directly supports the importance of integrating safety measures into the overall business operations.

The research notes a comparison between the findings from the ABM simulations and results from surveys. While specifics aren't detailed, this comparison served to validate the model's insights. The alignment of simulation results with survey data strengthens the reliability and applicability of the research findings. The comparison strengthens the credibility of the model's outputs, suggesting that the simulated scenarios reflect realistic dynamics within SSEs. The study concludes that proactive employee safety behaviors, particularly whistleblowing and public reporting, can significantly enhance safety production levels in SSEs, aligning simulation findings with observed real-world behavior.

The research findings offer significant implications for various stakeholders involved in workplace safety within small-scale enterprises (SSEs). For policymakers, the results underscore the need for policies that not only incentivize whistleblowing but also provide robust protection for employees who report safety concerns. This includes creating a safe environment where workers feel comfortable reporting violations without fear of retribution. For owner-managers of SSEs, the study demonstrates a strong correlation between prioritizing safety and long-term profitability. While short-term costs associated with safety improvements might seem detrimental, the long-term gains, including reduced accident rates and enhanced public reputation, significantly outweigh the initial investments. The public benefits from increased transparency and accountability within SSEs, leading to safer workplaces and potentially influencing consumer choices based on a company's safety record. Universities and research teams can utilize the ABM model for further investigations into workplace safety. The model serves as a valuable tool to simulate various scenarios and their impact, potentially informing future policy and business decisions.

Based on the findings, the research offers several recommendations for enhancing workplace safety in SSEs. The study emphasizes the importance of creating and promoting effective channels for employees to report safety concerns, including the utilization of social media (SNS) and mobile messaging platforms (MMP) for reporting. Providing sufficient incentives and safeguards for whistleblowers is crucial to encourage reporting and hold non-compliant owner-managers accountable. The research suggests that policymakers should consider policies that not only reward whistleblowers but also provide sufficient legal protections, creating a safe environment that encourages reporting. In addition, the study advocates for a shift in mindset among SSE owners, urging them to prioritize safety alongside productivity to ensure long-term success. A more holistic view of safety that considers the interconnectedness between employee actions, public perception, and governmental regulations is crucial for achieving sustainable improvements.

The study acknowledges certain limitations. The ABM model, while sophisticated, is an abstraction of real-world SSEs and may not fully capture all market complexities. The model could also benefit from greater integration of factors and the inclusion of additional agents, such as labor unions and financing institutions, to provide a more comprehensive representation of the safety landscape in SSEs. Future research could focus on expanding the model to incorporate these factors, improving its accuracy, and providing even more precise insights. Further research could also focus on the ethical considerations faced by employees when reporting safety violations, as well as the potential for misaligned motivations and biases in decision-making within SSEs. By addressing these limitations, future studies can refine the model and enhance its predictive capabilities, providing a more nuanced and complete understanding of workplace safety in the context of SSEs.