System Dynamics and Environmental Constraints: How CEOs Are Redefining Strategy for Sustainable Corporate Transformation
DOI:
https://doi.org/10.18531/sme.vol.12.no.3.pp.20-35Schlagwörter:
System Dynamics Modelling (SDM), Corporate Sustainability Strategy, Systems Thinking, Environmental Constraints, Executive Decision-MakingAbstract
Based on exploring how the application of System Dynamics Modelling (SDM), combined with an increased awareness of environmental constraints, influences strategic decision-making among corporate executives pursuing sustainability transformation. Drawing upon the principles of systems thinking and environmental frameworks such as the Planetary Boundaries and Limits to Growth, the study investigates how executives adapt to complex, dynamic challenges that transcend traditional business metrics. Using qualitative data from in-depth interviews with five CEOs across diverse sectors, this research identifies common themes around how leaders perceive ecological limits and systemic feedback, and how this shapes long-term strategy formation.
Furthermore, the study integrates quantitative simulation using the World3 model to demonstrate the systemic impacts of corporate decisions on pollution, resource depletion, and industrial output over time. The findings suggest that CEOs who are informed by systems thinking, and environmental thresholds are more likely to engage in strategic foresight, invest in resilience, and redefine corporate success beyond short-term profit. The paper contributes to the field by demonstrating the practical relevance of SDM in bridging the gap between theoretical sustainability imperatives and executive-level decision-making. It also offers a conceptual framework for integrating SDM with sustainability governance, highlighting the potential for more adaptive, long-term strategic planning in the face of ecological disruption.
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