A system dynamics perspective on a viable systems approach definition for sustainable value

Abstract

Aim of this work is to shed light on sustainable value and develop a model, based on vSa and translated at applicative level through the system dynamics methodology for measuring sustainable value. By adopting vSa perspective, value, characterized by strongly subjective contents, will be considered as a vector quantity, as the result of the subjective weighting of the different dimensions that may change according to the considered organization. Starting from the analysis of system dynamics and vSa, we will implement the theoretical framework into a model developed with system dynamics, hence through a methodology capable of addressing systemic problems which is also an expressive approach to solve issues arising in complex systems (characterized by interdependence, mutual interaction, information feedback, circular causality). In order to translate theory into “action and application” we will develop a model through which it will be possible to exploit the advantages of vSa implemented into an SD model, which ultimately can also be instantiated to specific cases and then simulated for further quantitative insights. Currently, there is no theoretical/practical approach to sustainable value measurement for business organizations that simultaneously considers the dimensions of the triple bottom line together with the subjective perspective of decision-makers. From these considerations, we derived the idea to integrate vSa and system dynamics with the aim of analyzing the issue of sustainable value, whose triple dimension is usually (erroneously) seen under a perspective that does not consider the interactions among those three dimensions. The integration of the subjective perspective within a model for calculating sustainable value can be seen as considering vSa as the theoretical framework, and system dynamics as the methodology that allows translating such an approach into a model that can later be simulated. It is also worth mentioning that through the application of the vSa theory to the case of sustainable value, by means of a transcoding approach like the system dynamics one, we are somehow trying to “redefine”, or better “enhance”, the vSa theory itself, by “operationalizing” it.