The system dynamics field has a need for defining what one needs to know and capable of doing to ne a system dynamicist. This paper builds on previous steps taken in order to elaborate a shared definition; it adopts the methodological orientation of stage-wise competency development from beginner to competent. It also uses Bloom's taxonomy - a widely accepted reference framework - to articulate an organized set of learning objectives. A Delphi process has been designed to exploit the knowledge and experience of a set of system dynamics experts use their contribution to obtain a clear statement concerning the learning objectives for beginners, advanced beginners, competent and proficient (practitioner). The resulting ordered and classified set of learning objectives is a necessary, though not sufficient, step towards a shared standard for system dynamics instruction and training. Building on it, standard activities and materials, as well as certification devices can be designed and developed.
The subject of articulating and comparing mental models of dynamic systems has been present in system dynamics since many years now. Methods have been borrowed from other disciplines and been adapted to the specific needs of system dynamics. They all focus on variables and causal links, and most recent ones include feedback loops. However, this focus has problems to deal with differences stemming from different degrees of aggregation. Here it is proposed to insert chains of causal links as level of analysis. A simple example is used to show how this can be done; first a reference model is defined with a standard length for each causal chain; then a distance matrix representation of causal diagrams is used and two new indicators - relative length difference and relative content difference - are shown to provide useful information for interpreting different levels of aggregation in the causal connection between flows and stocks.
The paper explores the executives' decision-making process when facing megatrends. Thereby, we argue that executives' are particularly prone to inertia and delayed strategic responses when confronted with megatrends. Drawing on psychology literature, we propose emotions as pivotal triggers to determine the multitude of alternatives considered and to mitigate inertia in decision-making. Further, we suggest executives' personal involvement and experience to moderate this relationship. The study makes two important contributions. First, by providing first insights on the impact of megatrends on the decision-making process, we answer calls of scholars and practitioners. Second, our study advances cognition and emotion literature by the concept of time-coupled emotions, which benefits our understanding of executives' behavior during the decisionmaking process.
Recent research suggests that owners such as institutions, families, and corporations have distinct characteristics. While these differences seem to have implications for a firm's corporate strategy and performance, empirical evidence is still sparse. We address this gap with a study of the combined effect of owner identity and diversification on firm performance. Drawing upon agency theory, we argue that owners differ in their incentives to monitor, costs of monitoring, and abilities to monitor a firm's management and, therefore, prefer different diversification strategies. Further, we propose that the fit between owner identity and diversification strategy benefits firm performance. Results from a large-scale sample of 643 US firms over an eight-year period largely support our hypotheses.
This paper deals with the representation of mental models of dynamic systems (MMDS). The notion of mental model has always been fundamental in system dynamics, and 10 years ago, a specific definition was introduced. However, no conceptual model of what MMDS contain was offered. Since then, two assessment and comparison methods from other fields have been borrowed, one trying to express the distance, the other expressing the closeness. The question is if they are equivalent in procedure and results, and how they satisfy specific needs of system dynamics. Two exemplary models are compared with each of the methods, which are found to de different in procedure and in results they produce. Additionally, they ignore the feedback loop concept. So a conceptual model for the structure of MMDS and a method for comparing are proposed; application to the exemplary models shows some alleged advantages. A preliminary conclusion is that more discussion and comparative work are needed.
Team diversity has opposing effects. It increases the potential for creativity and simultaneously lowers group coherence. We delineate these positive and negative effects in the context of top management teams (TMT) and firm performance. For doing so, we develop a model that relates the distinct effects of TMT diversity to contextual factors. Our analyses of the global insurance industry (1998-2007) test how TMT diversity affects the way firms respond to market disruptions. We argue that high levels of TMT diversity allow firms to react both more consciously and briskly, whereas low levels of TMT diversity make them mimic their peers. Yet, since the extensive decision making of diverse TMTs involves costs and since its benefits fade during stable times, TMT diversity remains a double-edged sword.
Presents a study that examined critical contingencies that influence the ability of headquarters of multinational companies to benefit from their offshore knowledge base. Changes in the traditional role of headquarters as primary source of knowledge and competencies; Approaches to accessing overseas knowledge; Factors that should be considered by managers who have to shape the global knowledge management processes of their firms.
For former monopolies, the liberalization of European utility markets leads to a drastically changed competitive environment. Multi?utility, i.e. the bundling of various utility services, is often seen as a strategic response to these changes. However, consumer preferences and attitudes towards such Multi?Utility?Bundles are widely unknown. Using conjoint analysis, this paper evaluates potential benefits of such a strategy from a consumers' perspective and draws strategic implications for utility providers. Our results show that under current market conditions, multi?utility favors established providers as it creates entry barriers which will be hard to circumvent by new competitors.
