Abstract
Public organizations need innovative approaches for managing common goods and to explain the dynamics linking the (re)generation of common goods and organizational performance. Although system dynamics is recognised as a useful approach for managing common goods, public organizations rarely adopt the system dynamics for this goal. The paper aims to review the literature on the system dynamics and its recent application, known as dynamic performance management, to highlight the state of the art and future opportunities on the management of common goods. The authors analyzed 144 documents using a systematic literature review. The results obtained outline a fair number of documents, countries and journals involving the study of system dynamics, but do not cover sufficient research on the linking between the (re)generation of common goods and organizational performance. This paper outlines academic and practical contributions. Firstly, it contributes to the theory of common goods. It provides insight for linking the management of common goods and organizational performance through the use of dynamic performance management approach. Furthermore, it shows scholars the main research opportunities. Secondly, it indicates to practitioners the documents providing useful ideas on the adoption of system dynamics for managing common goods.
Highlights
Organizations need innovative approaches for managing common goods and linking thegeneration of common goods and organizational performance management [1]
We suggest the use of system dynamics to address this gap to contribute to the theory on common goods providing a useful approach for managing common goods and linking common goods and organizational performance management in the public sector
We systematically investigated the literature on system dynamics and dynamic performance management in the public context to show (a) the state of the art and (b) future opportunities on the use of system dynamics in public context
Summary
Organizations need innovative approaches for managing common goods and linking the (re)generation of common goods and organizational performance management [1]. The common good can lose its value, for instance, through the users’ behaviour (e.g., beneficiaries’ neglect, mistakes, or disorganization) [1] In this sense, the users have to contribute to the generation of common goods, and their regeneration; otherwise, they lose value. Numerous public organizations implemented managerial models traditionally used by non-public organizations, for example, Balance Scorecard, these models rarely represented the managerial complexity of a public organization, thereby failing in their purpose [3,4,5] In this sense, system dynamics may be a useful approach for managing this linking in the public context [6,7]. Dynamic performance management is recognised as an innovative approach to linking the (re)generation of common goods and organizational performance, it is still not adopted widely enough for this purpose [7,10,11,12,13]
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