Using system dynamics to investigate how belief systems influence the process of organizational change

Min-Huei Yang, Showing Young, Shyh-Jane Li, Yu-Ying Huang

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

The relationship between organizational change and performance is an important topic in strategic management. However, the way in which the process of organizational change affects organizational performance has been underestimated (Combe & Carrington, 2015). This study explores how Chief Executive Officers' beliefs lead to organizational changes and then subsequently generate superior organizational performance, using General Electric Corporation as a case. We developed a detailed simulation model of GE, including human resources, financial and cost accounting, research and development, and operations. Historical information and archival data were used to specify and formulate the model. The results show that a Chief Executive Officer's belief system can impact a firm's strategic decisions and financial performance both in the short and long term. In the short term, leaders' beliefs influence the strategies of the company and can be beneficial to financial outcomes. In the long term, leaders' beliefs may protect the company from future failures.
Original languageEnglish
Pages (from-to)94-108
Number of pages15
JournalSystems Research and Behavioral Science
Volume34
Issue number1
DOIs
Publication statusPublished - 2017
Externally publishedYes

Keywords

  • system dynamics
  • organizational change
  • belief system
  • time delay
  • limit to growth

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