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The Systems Thinking Approach to Strategic Management
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The Systems Thinking Approach to Strategic Management

A special issue of Systems (ISSN 2079-8954). This special issue belongs to the section "Systems Theory and Methodology".

Deadline for manuscript submissions: closed (15 August 2024) | Viewed by 24016

Special Issue Editors

Prof. Dr. Federico Barnabè

E-Mail Website
Guest Editor
Department of Business and Law, University of Siena, P.za S. Francesco 7, 53100 Siena, Italy
Interests: strategy; management accounting; performance measurement; simulation & gaming
Special Issues, Collections and Topics in MDPI journals
Prof. Dr. Martin Kunc

E-Mail Website
Guest Editor
Department of Decision Analytics and Risk, University of Southampton, Southampton, UK
Interests: business analytics; strategic modeling; scenario planning

Special Issue Information

Dear Colleagues,

This Special Issue of Systems invites you to document the significant contribution of systems thinking to strategic management and propose new avenues for research into its integration. There have been multiple contributions by individual authors in different journals on topics related to strategic management, such as leadership, strategic planning, strategy design, visioning, scenarios, and balanced scorecards, using multiple strands of systems thinking, e.g., critical systems heuristics, critical systems thinking, soft systems methodology, systemic design, system dynamics, viable system models, etc. However, there must be a systematic evaluation of the use of systems thinking in strategic management, especially in the current global situation underpinned by complexity, uncertainty and turbulence. We look forward to receiving your submissions for consideration on topics such as, but not restricted to:

  1. The potential role of systems thinking in analyzing complex problems in strategic management.
  2. Using systems thinking to enhance strategy mapping and balanced scorecard development.
  3. Fostering strategic decision making with systems thinking principles and tools.
  4. Embedding ESG (environmental, social and governance) in an organization's strategy through systems thinking principles and tools.
  5. Planning for the future with the support of systems thinking.
  6. Developing systems thinking-assisted games to foster the acquisition of strategic management skills.

Systems is a leading venue for the quick and global dissemination of results of cutting-edge research in various areas of systems science and systems-related fields. An increasing number of researchers are realizing the enormous potential of systems thinking in managing the many unprecedented and complex issues related to the strategic management of organizations. The Systems journal provides a home of exceptional quality for the manuscripts of these researchers who often find it difficult to publish their work in conventional discipline focused journals due to its novelty, approaches, or writing style.

Prof. Dr. Federico Barnabè
Prof. Dr. Martin Kunc
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Systems is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • strategic management
  • critical systems heuristics
  • critical systems thinking
  • soft systems methodology
  • systemic design
  • system dynamics
  • viable system model
  • leadership
  • strategic planning
  • ESG

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Published Papers (12 papers)

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Research

21 pages, 4654 KiB  
Article
System Dynamics Modeling: Technological Solution to Evaluating Cold-Chain Meat Packaging Scenarios
by Ernesto A. Lagarda-Leyva, Luis E. Hernández-Valdez and Alfredo Bueno-Solano
Systems 2024, 12(11), 503; https://doi.org/10.3390/systems12110503 - 19 Nov 2024
Viewed by 425
Abstract
A cold-chain meat packaging project was developed for a meat product company in northwestern Mexico that moves high volumes of fresh meat into national and international markets. The objective of the present research is to evaluate the supply process for three types of [...] Read more.
A cold-chain meat packaging project was developed for a meat product company in northwestern Mexico that moves high volumes of fresh meat into national and international markets. The objective of the present research is to evaluate the supply process for three types of thermo-shrinkable polyethylene bags to provide a technological solution for high-volume meat packaging based on a graphical user interface. A system dynamics (SD) methodology is developed in seven stages to generate a technological solution: (1) system mapping; (2) causal diagram construction; (3) stock, flow modeling, and equations; (4) model simulation; (5) model validation; (6) scenarios and multicriteria analysis; and (7) graphical user interface development. The main result for the company was a technological solution that could communicate with decision-makers and the proposed graphical user interface. Future optimistic and pessimistic scenarios were self-evaluated based on the current situation related to three thermo-shrinkable bags used for selling high volumes of fresh meat. In these solutions, previously simulated costs and savings can be implemented in a real situation. Quantitative graphical user interface data can be observed to adequately manage box and bag inventories and minimize costs. Using SD enables the development of technological solutions in complex environments with robust simulations and models that offer data to people interested in the system under study. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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17 pages, 1626 KiB  
Article
Systems Thinking Principles for Making Change
by Martin Reynolds
Systems 2024, 12(10), 437; https://doi.org/10.3390/systems12100437 - 16 Oct 2024
Viewed by 1222
Abstract
Traditionally, systems thinking support has relied on an ever-increasing plethora of systems tools, methods, and approaches. Arguably though, such support requires something different from, and more accessible than, detailed instruction on somewhat abstract laws and detailed principles and/or constitutive rules associated with conventional [...] Read more.
Traditionally, systems thinking support has relied on an ever-increasing plethora of systems tools, methods, and approaches. Arguably though, such support requires something different from, and more accessible than, detailed instruction on somewhat abstract laws and detailed principles and/or constitutive rules associated with conventional systems approaches or systems ‘tools of the trade’. For busy managers and decision makers working in often-stressful conditions, what is perhaps more valued are simple principles for enabling systems thinking in practice. Such principles should acknowledge and build on existing (multi)disciplinary skill sets and expertise, allowing for more meaningful interdisciplinary support amongst professions, as part of a nested transdisciplinary support for addressing wider social challenges. This monograph offers three principles of systems thinking in practice (STiP): relational STiP, perspective STiP, and adaptive STiP. They each have two sets of operational principles applicable to first-order and second-order practice, respectively. The three general principles are nested in an overriding principle of STiP as praxis (theory-informed action or thinking in practice) manifest in the need for being both systemic and systematic. The three principles represent a distilled expression of a systematic literacy of systems thinking, a literacy that speaks to the systemic sensibilities of Inter-relationships, Perspectives, and Boundaries (sometimes referred collectively as IPB), associated with any area of intervention. Drawing on metaphors of bricolage, conversation, and performance, and building on philosophical foundations of boundary critique, the three principles provide for a requisite systems literacy (as an emergent property of systemic sensibilities and systems thinking literacy) for enabling appropriate STiP capabilities to flourish when making a meaningful change. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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23 pages, 579 KiB  
Article
Prioritizing Factors to Foster Improvement of Sales Operations in Small- and Medium-Sized Industrial Organizations
by Luis A. Vásquez-Ruiz, Juan E. Núñez-Ríos and Jacqueline Y. Sánchez-García
Systems 2024, 12(9), 383; https://doi.org/10.3390/systems12090383 - 23 Sep 2024
Viewed by 916
Abstract
Small- and medium-sized companies depend heavily on their internal configuration to achieve their goals, generate profit, and remain competitive. The performance of the sales department is often crucial for this. Decision-makers need to understand how to coordinate the sales force’s operations while considering [...] Read more.
Small- and medium-sized companies depend heavily on their internal configuration to achieve their goals, generate profit, and remain competitive. The performance of the sales department is often crucial for this. Decision-makers need to understand how to coordinate the sales force’s operations while considering team members’ communication and commitment. This article presents an approach to prioritize factors that will improve the operations of the sales department in small- and medium-sized companies in the industrial sector. To achieve this, we adopted the soft modeling approach by (1) outlining a conceptual model that identifies the factors that can lead to improvements based on the literature and (2) using the analytical hierarchy process to validate a construct and prioritize the factors. This study is focused on the organizational domain and involves the participation of sixty employees from medium-sized Mexican companies with at least five years of experience. The results indicate that the factors that foster improvement in sales department operations are communication improvement, failure prevention, workload alignment, and adequate integration of human efforts with technology without neglecting coordination and management mechanisms. This article could encourage academics and practitioners to adopt the soft modeling approach to adopt new courses of action based on continuous learning and improve organizational cohesion. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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21 pages, 6465 KiB  
Article
Soft Systems Methodology in Standardizing the Method for Applying Dolphin-Assisted Therapies in Neurodivergent Patients: Case Study of Delfiniti Mexico
by Ana Lilia Coria Páez, Brenda Lorena Flores Hidalgo, Oswaldo Morales Matamoros, Jesús Jaime Moreno Escobar and Hugo Quintana Espinosa
Systems 2024, 12(8), 294; https://doi.org/10.3390/systems12080294 - 11 Aug 2024
Viewed by 1060
Abstract
Dolphin-assisted therapy (DAT) currently lacks a standard for their application, making it difficult to collect the consistent data necessary for comparative studies and the development of new evidence-based therapeutic strategies. Due to their high social component, DAT requires a standardized method that identifies [...] Read more.
Dolphin-assisted therapy (DAT) currently lacks a standard for their application, making it difficult to collect the consistent data necessary for comparative studies and the development of new evidence-based therapeutic strategies. Due to their high social component, DAT requires a standardized method that identifies the elements that affect them, understands their complex situations, and proposes solutions to the challenges. This study aims to establish the first steps towards standardizing DAT, using the Soft Systems Methodology (SSM) as the central approach. SSM is suitable for addressing complex and ambiguous problems that involve multiple actors and perspectives. Through SSM, the study seeks to visualize problems, clarify conflict relationships that hinder standardization, and propose effective solutions. To establish an initial standard method, a time and motion study is performed to identify activities that disrupt the sequence of operations and the capture of EEG signals collected before, during, and after DAT. SSM allows for summarizing the current system situation, identifying and analyzing problems, clarifying challenges, and proposing pertinent solutions to achieve the standardization of this therapy. This methodology facilitates the identification of critical points and the development of intervention strategies that could improve the efficiency and effectiveness of the therapeutic process, establishing a more coherent framework for the implementation of DAT. Thus, the contribution of this work is based on systems thinking to strategic management, as it demonstrates the potential role of systems thinking, specifically SSM, in analyzing complex problems, improving strategy mapping, fostering strategic decision making, and planning for the future in the context of strategic management. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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17 pages, 780 KiB  
Article
The Systems Thinking Approach to Strategic Management
by Martin Kunc
Systems 2024, 12(6), 213; https://doi.org/10.3390/systems12060213 - 15 Jun 2024
Cited by 1 | Viewed by 4488
Abstract
This paper presents a review of the field of systems thinking and strategic management The evolution of the areas of interest between systems thinking and strategic management follows similar patterns with more prescriptive developments occurring within the 1960s until 1980s; then, an increasing [...] Read more.
This paper presents a review of the field of systems thinking and strategic management The evolution of the areas of interest between systems thinking and strategic management follows similar patterns with more prescriptive developments occurring within the 1960s until 1980s; then, an increasing focus on emergence and transformation emerged in later years. From the review, there seems to exist synergies between multiple strands in Systems Thinking and Strategic Management. Suggestions to facilitate the interaction between both fields are proposed, considering the type of processes to generate strategies and the perspectives employed to visualize the organizations as systems. Hopefully, the paper can contribute to embedding systemic approaches to the strategic management of organizations and society. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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24 pages, 4782 KiB  
Article
A Dynamic Analysis to Examine Regional Development in the Context of a Digitally Enabled Regional Innovation System: The Case of Western and Central Macedonia (Greece)
by Elpida Samara, Pavlos Kilintzis, Efthymios Katsoras, George Martinidis and Paraskevi Kosti
Systems 2024, 12(6), 200; https://doi.org/10.3390/systems12060200 - 7 Jun 2024
Cited by 2 | Viewed by 967
Abstract
The significance of Regional Innovation Systems (RIS) as a strategic tool for enhancing a region’s competitiveness has been increasingly recognized. This paper presents a model of RIS that was developed using the system dynamics (SD) methodology. The goal of this model is to [...] Read more.
The significance of Regional Innovation Systems (RIS) as a strategic tool for enhancing a region’s competitiveness has been increasingly recognized. This paper presents a model of RIS that was developed using the system dynamics (SD) methodology. The goal of this model is to amalgamate the systemic approach with computer modeling and simulation disciplines into a comprehensive dynamic framework for analyzing RIS. Within this framework, the paper explores the impact of smart technologies on regional development through the RIS. Specifically, the SD model serves as an ‘experimental tool’ for conducting extensive what-if scenario analyses concerning smart technologies. The efficacy of these technologies is examined in terms of their dynamic influence on regional development, with insights derived from simulation outcomes. Data from two Greek regions provides a strategic analysis over a designated time horizon. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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23 pages, 3100 KiB  
Article
Applying Integrative Systems Methodology: The Case of Health Care Organizations
by Markus Schwaninger and Johann Klocker
Systems 2024, 12(4), 140; https://doi.org/10.3390/systems12040140 - 22 Apr 2024
Cited by 1 | Viewed by 1382
Abstract
Systems thinking has a lot to offer to the field of strategizing. Calls for a greater use of the Systems Approaches to management are increasingly being advanced in the world of organizations, public and private. Yet, practical implementation of such postulates is lagging. [...] Read more.
Systems thinking has a lot to offer to the field of strategizing. Calls for a greater use of the Systems Approaches to management are increasingly being advanced in the world of organizations, public and private. Yet, practical implementation of such postulates is lagging. This article aims to demonstrate the potential of systems thinking in shaping strategy in management and organization. It builds on a framework known as Integrative Systems Methodology, a circular set of established components of strategic processes: all elements of the methodology are covered, from finding purpose and goals, modeling, and diagnosing to the design of strategies and change. Along this path, complementary methodologies are combined to cope with high environmental complexity. In the present case, these are the systems methodologies of Organizational Cybernetics (namely Viable System Model) and System Dynamics. The layout of the treatise is conceptual in nature. Nevertheless, long-term empirical evidence from a set of real-world organizations-one center and several peripheral healthcare entities-is presented to make the methodology tangible: theoretically grounded and experientially corroborated. The case study we are introducing is from health care, concretely: an oncological care system. Structural patterns are elicited, which are isomorphic, applicable to any health care system. From a conceptual-theoretical stance, crucial factors conducive to continuous organizational learning are elaborated. Professionals can benefit from acquiring new ways of coping with the ever-increasing complexity. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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31 pages, 4454 KiB  
Article
Fostering the “Performativity” of Performance Information Use by Decision-Makers through Dynamic Performance Management: Evidence from Action Research in a Local Area
by Vincenzo Vignieri and Noemi Grippi
Systems 2024, 12(4), 115; https://doi.org/10.3390/systems12040115 - 28 Mar 2024
Cited by 1 | Viewed by 1626
Abstract
A local area configures a socio-economic system in which several institutions interact. As stakeholders hold different values and perhaps conflicting interests, managing local area performance is a dynamic and complex issue. In these inter-institutional settings, performance management may help address such complexity. Traditional [...] Read more.
A local area configures a socio-economic system in which several institutions interact. As stakeholders hold different values and perhaps conflicting interests, managing local area performance is a dynamic and complex issue. In these inter-institutional settings, performance management may help address such complexity. Traditional performance management approaches, mostly based on static and linear analysis, fail to capture the dynamic complexity of local-area performance, bounding decision-makers’ mindsets to an organizational view of performance. Overcoming such limitations requires methods oriented to grasp a better understanding of the social reality in which their institutions operate. This contribution aims to illustrate how the Dynamic Performance Management (DPM) approach may foster a “performative” use of performance information by decision-makers in inter-institutional settings. To this end, the article highlights the importance of designing conducive learning settings (i.e., action research enhanced by a system dynamics-based interactive learning environment) to support decision-makers make such a cognitive leap. Drawing from empirical evidence on destination governance studies, the article shows that enriching performance management with system dynamics modeling may help decision-makers to reflect on key issues impacting local area development, sparking a discussion on potential actions to balance economic, social, and competitive dimensions of performance. Findings reveal that DPM insight modeling holds explanatory and communicative potential in real forums by providing decision-makers with an understanding of the means-end relationships linking strategic resources to outcomes through value drivers. The use of such performance information can help local area stakeholders to (re)conceptualize the social reality in which their institutions operate. By acting as a “maieutic machine”, DPM fosters a shift from an organizational and static to an inter-organizational and dynamic view of local area performance. Implications of the study include the opportunity to provide training to strengthen the active use of performance information by decision-makers in inter-institutional settings. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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15 pages, 1785 KiB  
Article
Why Do Key Decision-Makers Fail to Foresee Extreme ‘Black Swan’ Events? A Case Study of the Pike River Mine Disaster, New Zealand
by Richard John Logan, Robert Y. Cavana, Bronwyn E. Howell and Ian Yeoman
Systems 2024, 12(1), 34; https://doi.org/10.3390/systems12010034 - 19 Jan 2024
Viewed by 2253
Abstract
This research addresses the strategic issue of why key decision-makers fail to foresee potential extreme ‘black swan’ events. Following a review of the literature, a conceptual framework is developed that identifies two types of organisational blindness that are reflected in Tetlock’s hedgehog cognitive [...] Read more.
This research addresses the strategic issue of why key decision-makers fail to foresee potential extreme ‘black swan’ events. Following a review of the literature, a conceptual framework is developed that identifies two types of organisational blindness that are reflected in Tetlock’s hedgehog cognitive thinking style, being the oversimplification of uncertainty (e.g., inductive biases) and an unquestioned, top-down, reference narrative. This framework is tested using a case study approach and qualitative analysis of secondary data sources available from the Royal Commission of Inquiry and other published reports following the 2010 methane explosion at the Pike River Coal Ltd.’s mine (Pike) in New Zealand, that killed 29 miners and caused the loss of all funds invested. The results indicate that the combined effect of both blindnesses meant that Pike’s collective intelligence was limited, and for the three key decision-makers at the Pike River mine, some type of extreme ‘black swan’ event was apparently inevitable. This research provides theoretical and practical contributions to the analysis of business and public policy decision-making under uncertainty. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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29 pages, 6901 KiB  
Article
Critical Thinking Skills Enhancement through System Dynamics-Based Games: Insights from the Project Management Board Game Project
by Federico Barnabè, Stefano Armenia, Sarfraz Nazir and Alessandro Pompei
Systems 2023, 11(11), 554; https://doi.org/10.3390/systems11110554 - 19 Nov 2023
Cited by 1 | Viewed by 2840
Abstract
This study aims to explore and discuss the role of systems thinking and system dynamics-assisted games in enhancing critical thinking skills in learners. In more detail, the study relies on the use of a system dynamics-based interactive learning environment related to project management [...] Read more.
This study aims to explore and discuss the role of systems thinking and system dynamics-assisted games in enhancing critical thinking skills in learners. In more detail, the study relies on the use of a system dynamics-based interactive learning environment related to project management issues, followed by systems thinking-supported debriefing sessions. The interactive learning environment was developed and used in the form of a single-player, online, computer-based game. The game was designed to mimic all the necessary planning and operational activities needed to organize a wedding ceremony. The acquisition of critical thinking skills in learners was evaluated in three main ways: (1) players’ performances were analyzed through a scoring system embedded in the game that considers several performance dimensions; (2) feedback from the players was collected and analyzed by using basic content analysis; (3) players’ performances were analyzed using five main categories of structures that are typical of project management domains, i.e., project features, the rework cycle, project control, ripple effects, and knock-on effects. The findings show that the joint use of system dynamics and systems thinking tools and principles within a gaming environment has the potential to facilitate and enhance the acquisition of critical thinking skills in learners and may also provide valid support for educators and practitioners interested in the enhancement of project management skills. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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21 pages, 1281 KiB  
Article
Systems Approach for the Adoption of New Technologies in Enterprises
by Ana Gabriela Ramírez-Gutiérrez, Pavel Solano García, Oswaldo Morales Matamoros, Jesús Jaime Moreno Escobar and Ricardo Tejeida-Padilla
Systems 2023, 11(10), 494; https://doi.org/10.3390/systems11100494 - 27 Sep 2023
Cited by 3 | Viewed by 2904
Abstract
There is a great challenge in the business sector to adopt new technologies that boost companies to break into Industry 4.0, especially to obtain the capacity to adopt and develop complex systems based on: artificial intelligence, Big Data, Data Mining, and Cyber Physical [...] Read more.
There is a great challenge in the business sector to adopt new technologies that boost companies to break into Industry 4.0, especially to obtain the capacity to adopt and develop complex systems based on: artificial intelligence, Big Data, Data Mining, and Cyber Physical Systems. However, efforts tend to be more of an empirical process, rather than a prior analysis, that allows companies to identify the complexity of the situation and trigger a viable implementation. For this reason, this research carried out a systematic review to identify and analyze, from the Systems Science approach, the proposed and most used models to face these organizational problems. In total, 42 of the 3800 documents were filtered for discussion using a systems approach. In addition, one of the models was tested by interviews with Mexican managers to understand how it promotes the abstraction of complexity necessary for a viable system change. The findings at the end of the work were to determine the lack of systemic properties in the current proposals, especially in the efforts to adopt artificial intelligence and the need to have a suitable model for the context of technology. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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20 pages, 2572 KiB  
Article
Evolutionary Game Analysis on Operation Mode Selection of Big-Science Infrastructures
by Zhenyu Huang
Systems 2023, 11(9), 465; https://doi.org/10.3390/systems11090465 - 6 Sep 2023
Viewed by 1386
Abstract
As big-science infrastructures (BSIs) become the new infrastructure to support the construction of strong science and technology in China, how to choose an operation mode that is more conducive to achieving the construction goals of BSIs has become a current focus issue. The [...] Read more.
As big-science infrastructures (BSIs) become the new infrastructure to support the construction of strong science and technology in China, how to choose an operation mode that is more conducive to achieving the construction goals of BSIs has become a current focus issue. The existing literature focuses more on the governance relationship between BSIs and universities or research institutes, while the important role of government has not yet been thoroughly analyzed. This study argues that government plays a fundamental role in the selection of operation modes for BSIs. Therefore, this study builds an evolutionary game model between the government and the contractor based on the perspective of asset specificity by analyzing the practical basis for the strategic choices of the government and the contractor for the operation of BSIs. The model is numerically simulated and analyzed. The research results indicate that the government’s decisions on operation strategies, outsourcing strategies, and the combination of the two significantly affect the strategic choices of the contractor, thereby affecting whether the government can obtain the value of asset specificity of BSIs. The government’s choice of the “independent operation” strategy or the combination “dependent operation + controlled outsourcing” strategy is more conducive to encouraging the contractor to choose the “cooperation” strategy for producing specific value for BSIs. The main contribution of this study is to clarify that the allocation of the government control right is the key factor in obtaining the value of asset specificity of BSIs. Full article
(This article belongs to the Special Issue The Systems Thinking Approach to Strategic Management)
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