Purpose – 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, and through which it will be possible, once contextualized, to simulate the behaviours of business organizations interested in measuring sustainable value. According to the above-mentioned theoretical framework, value, traditionally considered as something objective and defined a priori, owns a multiple nature and is characterized by strongly subjective contents. This last concept means that the definition of value passes through the perspective of the subjects towards whom it is created (Recipient), in relation to the perspective of the entity who is interested in its creation and measurement (the governing body of the organizations). This conceptualization, based on vSa, assumes greater significance when we refer to sustainable value, which is the result of the concurrent consideration of three dimensions: economic, social and environmental. By adopting this perspective, value will be considered as a vector quantity and as the result of the subjective weighting of the different stakeholders that may change according to the considered organization. Design/Methodology/approach – The paper will start from the analysis of the existing relations between the two considered approaches: system dynamics and vSa. Then, we will implement the theoretical framework in a simulation model trough system dynamics, which is capable to address systemic problems and is an expressive approach to solve issues rising in complex social, managerial, economic, or ecological systems: any dynamic systems characterized by interdependence, mutual interaction, information feedback, and 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 a simulation model. Findings – The integration of the subjective perspective within a model for calculating sustainable value will consider vSa as the theoretical framework of reference and System Dynamics as the methodology that allows translating such approach into a simulation model. Originality/value – The reasons that have inspired this work derive from the consideration that, currently, there isn’t a 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, derives the idea to integrate vSa and System Dynamics in analyzing the issue of sustainable value, whose triple dimension is usually (erroneously) seen in an optic that does not consider the interactions among those very same three dimensions.

A System Dynamics simulation model for sustainable value through the Viable Systems Approach

Carrubbo L
2017

Abstract

Purpose – 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, and through which it will be possible, once contextualized, to simulate the behaviours of business organizations interested in measuring sustainable value. According to the above-mentioned theoretical framework, value, traditionally considered as something objective and defined a priori, owns a multiple nature and is characterized by strongly subjective contents. This last concept means that the definition of value passes through the perspective of the subjects towards whom it is created (Recipient), in relation to the perspective of the entity who is interested in its creation and measurement (the governing body of the organizations). This conceptualization, based on vSa, assumes greater significance when we refer to sustainable value, which is the result of the concurrent consideration of three dimensions: economic, social and environmental. By adopting this perspective, value will be considered as a vector quantity and as the result of the subjective weighting of the different stakeholders that may change according to the considered organization. Design/Methodology/approach – The paper will start from the analysis of the existing relations between the two considered approaches: system dynamics and vSa. Then, we will implement the theoretical framework in a simulation model trough system dynamics, which is capable to address systemic problems and is an expressive approach to solve issues rising in complex social, managerial, economic, or ecological systems: any dynamic systems characterized by interdependence, mutual interaction, information feedback, and 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 a simulation model. Findings – The integration of the subjective perspective within a model for calculating sustainable value will consider vSa as the theoretical framework of reference and System Dynamics as the methodology that allows translating such approach into a simulation model. Originality/value – The reasons that have inspired this work derive from the consideration that, currently, there isn’t a 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, derives the idea to integrate vSa and System Dynamics in analyzing the issue of sustainable value, whose triple dimension is usually (erroneously) seen in an optic that does not consider the interactions among those very same three dimensions.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11386/4705005
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