Design and Simulation of an Integrated Model for Organisational Sustainability Applying the Viable System Model and System Dynamics

Abstract

The current global situation increases the exposure of organisations to their environment. As a consequence, companies have to consider a variety of topics that they had managed to a limited extent before. An organisation should now go beyond its limits in order to maintain its viability over time, this means being sustainable and making its related environment better by enabling collaborative working. In addition, there are not only challenges in the management of external relationships but in the management of internal ones. These are a consequence of the pressure for decision-making in short periods of time and a lack of coordination between different parts of organisations, effectively operating as silos with divergent goals. Even with common goals, due to a lack of adaptability or flexibility, some areas do not see the benefits of coordinating work for securing a long-term USP (Unique Selling Proposition) of an organisation. In this context, for both external and internal challenges, researchers often fail to holistically consider an organisation as being an agent, interacting and creating ecosystems of cooperation. Thus, the aim of this study is to propose a holistic approach as to how organisations can interact with their environment, as well as internally. Hereby, the Viable System Model and System Dynamics were applied. In conclusion this proposed approach enables companies to interact within its area of influence with an efficient approach. In order to prove the conceptual model, a simulation for a manufacturing supply chain and its area of influence was performed.