African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4191

Full Length Research Paper

Exploring an innovative model of corporate reform using the system dynamics approach

Iuan-Yuan Lu*, Chao-Ching Wei and Wen-Pin Lee
Institute of Business Administration, National Sun Yat-Sen University, No.70, Lianhai Rd., Gushan Dist., Kaohsiung City 804, Taiwan (R.O.C.).
Email: [email protected]

  •  Accepted: 28 December 2011
  •  Published: 25 April 2012

Abstract

This present study conducted a systematic thinking-based qualitative analysis, using simulation-oriented quantitative method to examine the causal loops of corporate reform. A reform strategy shall incorporate innovative value proposals to create extra revenues while expanding the potential of profit growth. The essential part of such a strategy, nevertheless, is to deliver as soon as possible the features and capacities of products/services that are emphasized and willingly paid for by customers. A business leader should consider the reform’s overall impact on the relationship/interdependency among the ecology, resources, and institution of the organization; to control its success (or not) is affected by the events, behaviours and structure; builds sustainable feedback performance-wise, and subsequently ensures continuous competitiveness. The reform-induced competitiveness is effective enough to tackle the competition from rivals.

 

Key words: System dynamics, system thinking, innovation, leading product, corporate reform, corporate change, strategy.