Fostering entrepreneurial learning processes through Dynamic Start-up business model simulators

Abstract Entrepreneurial learning is a critical process in realizing the success or failure of a new business venture, as it implies that would-be entrepreneurs acquire those strategic management competencies required to start and manage a new business. Actually, statistics on start-up survival/failure rate reveal that the main reasons for failure are related to a lack of entrepreneurial competencies of start-uppers. This paper argues that combining Business Model representation schemas with System Dynamics modelling may support potential start-up entrepreneurs in learning and experimenting how to turn a business idea into a real firm. System Dynamics modelling is a methodology that allows …

A dynamic business modelling approach to design and experiment new business venture strategies

Abstract Business Modelling has evolved as a key activity to reflect new business venture strategy by framing the way a firm will operate and how it will function in achieving its goals (e.g., profitability, growth, innovation, social impact). However, scholars and practitioners have criticized the adoption of a too static perspective in the design and use of conventional Business Model representations. Such a static perspective prevents nascent entrepreneurs experimenting with their Business Models and, as a result, identifying the most effective strategies, especially in terms of business sustainability and profitability. In this paper, we argue that combining conventional Business Model …

Understanding the Microfoundations of Entrepreneurial Ecosystems: Toward a Value-Based Method and Theory

Despite the progress made by scholars, empirically investigating entrepreneurial ecosystems (EEs) remains problematic because of the inherent complexities and nonlinearities of interactions among EE actors. The research to date has shown a tendency to focus on macrolevel ecosystem dynamics while neglecting the microfoundations of EEs. We contend that this negligence is due to a lack of appropriate methodologies that can capture EE microfoundations through a systemic value-based perspective. To fill this gap, in this article, we propose a novel methodological approach, the value system method, which enables framing EEs through critical causal interdependences between key actors’ business mod…

Generalising Theories Explaining the Different Modes of SME Development and the Associated Growth Trajectories

Previous research has identified two forms of “abnormal” growth – styled as business dwarfism and gigantism - which can both lead to missed opportunities for owners/entrepreneurs and local economies, and even to business crisis and collapse. It has also shown that stunted and inflated growth phenomena, rather than being characterised by completely different rules and rationales, are closely related and that certain fundamental structures and processes underpin both those forms of ab-normal company growth behaviour. This paper reports an examination of a further SME phenomenon – what we have chosen to call "micro-giants". These are companies that would be categorised as rela-tively small fir…

Sistemi di governo e di valutazione della performance per l'azienda "Università".

Politiche incentivanti, Motivazione delle Risorse Umane e Performance nell’Azienda Pubblica: un approccio di System Dynamics.

Strategic Asset Building and Competitive Strategies for SMEs which Compete with Industry Giants

This chapter studies companies which are arguably business super-heroes – the small firms which despite the apparent handicap of very limited resources are able to compete against much larger, multinational firms – the micro-giants Davids that take on Goliaths. Through a process of detailed case studies of actual firms, analysis of asset structure, and experiments with a simulation model, the relationships between key assets, critical success factors, and micro-giant competiveness are explored. The model produces six scenarios reflecting different strategies for developing tangible and intangible assets and, critically, the balance between them. A level of aggression is needed in asset buil…

Una proposta metodologica di rappresentazione della performance accademica in chiave sistemica: l’applicazione del Dynamic Performance Management al governo delle università

L’introduzione della contabilità economico-patrimoniale nel sistema universitario italiano – imposta dalle recenti disposizioni normative – pone oggi diverse sfide di carattere metodologico, culturale, organizzativo e tecnico, agli studiosi delle discipline economico-aziendali. Il presente studio è finalizzato alla progettazione e analisi di un modello di valutazione della performance declinato sulle specificità della fattispecie aziendale “università” secondo una prospettiva sistemica dove coesistano misure di performance competitiva, sociale ed economica, che possano efficacemente supportare i decisori accademici nei processi gestionali. Tale approccio viene comunemente denominato Dynamic…

A Physiological Approach to Analysing SME Growth Patterns and to Understanding the Distinctions and Similarities between Normal and Abnormal Growth

Building on earlier work on abnormal SME growth trajectories, this paper investigates to what extent the analysis can be extended to the study of an unusual but “normal” growth pattern. The detailed case histories of two firms which might be called micro-giants are presented. These are companies that would be categorised as small firms but are actually competing, and competing successfully, in non-niche markets with much larger firms, or even multinational giants. The resource based view and modelling approaches developed in the earlier non-normal growth situations is then applied to these cases. It is argued that by viewing the management of strategic assets as part of the normal business …

Building on Entrepreneurs’ Leadership through ‘Lean’ and Dynamic Performance Management Systems in Small and Micro Firms. Challenges and Missed Opportunities

This paper frames the potential benefits of ‘lean’ and dynamic performance management (PM) systems for small and micro enterprises. In this context, the ‘lean’ attribute is used to characterize a different approach in applying PM to small firms, in respect to larger organizations. In fact, such systems may exploit the entrepreneur’s tacit knowledge and build on leadership, by incorporating individual attributes into organizational routines. Related to small and micro firms, direct experience and case-studies suggest that their sudden crises and demises are often a product of gradual – internal and external – phenomena that entrepreneurs are not enabled to selectively and promptly detect and…

A System Dynamics Approach to Analysing the Effect of Clientelism on Public Organizations Performance in Italy

This paper tries to analyse the effects of political clientelism on the performance of public utilities and organizations in Italy. Shortly, clientelism consists in a series of reciprocal convenience-based relationships between politicians and individuals, commanding unequal resources and involving mutually beneficial transactions in terms of economic, social and political consequences. The motivation of this research stems from the fact that analysing the effect of clientelism may contribute in (1) improving the quality of electoral strategies and the resulting public policies and (2) managing the performance of public organizations according to a sustainable perspective. Hence, the key is…

Demand and Supply Model for the Natural Gas Supply Chain in Colombia

Natural gas is considered the transitional fuel for excellence between fossil and renewable sources, considering its low cost, greater efficiency and lesser effects on the environment. This has led to increased demand levels worldwide, requiring the intervention of public and private actors to meet such demand. In this research, we study the natural gas supply chain in Colombia using system dynamics modelling. The results allow to contrast both the behaviour of the production and transport levels and the behaviour of the demand from the consumption sectors, allowing to identify capacity levels to be developed considering implementation times and percentages of coverage in the supply.

Business model scaling and growth hacking in digital entrepreneurship

Creating an innovative product and validating an innovative business model may not be enough for digital startups to be competitive. To grow fast and expand globally, digital startups need to innovate their business model during the scaling phase. A pragmatic approach has recently been proposed to support digital entrepreneurs engaging in business-model innovation during the scaling phase (i.e., business-model scaling), a strategy known as growth hacking. However, we know little about its theoretical grounding and how effective growth hacking is, as businesses lack methodologies to assess its effectiveness before committing resources and investments. To fill this gap, we developed a method …

Supporting start-up business model design through system dynamics modelling

Purpose The purpose of this paper is to explore how system dynamics (SD) modelling can provide a methodological support to business model (BM) design with the intent to better communicate business strategy and manage performance. Design/methodology/approach After a literature review of the field and an analysis of the strengths and limitations of conventional BM frameworks, the paper illustrates and discusses an approach that combines such a framework with SD modelling. A single-case study design was selected to explore the implications and limitations of using this combined approach to business modelling. Findings The methodological support provided by SD to BM design may effectively impr…

Prevention and Mitigation of Rural Higher Education Dropout in Colombia: A Dynamic Performance Management Approach.

Background: Dropout in higher education is a socio-educational phenomenon that has the scope to limit the benefits of education as well as to widen social disparities. For this reason, governments have implemented various public policies for its prevention and mitigation. However, in rural populations, such policies have proven to be ineffective. The aim of this paper is to simulate public policy scenarios for the treatment of school dropout in rural higher education in Colombia from a Dynamic Performance Management approach. Methodology: To achieve the aim, a parameterised simulation model was designed with data from Colombian state entities in rural higher education. Five simulations were…

Sustainable strategies for small companies competing 
against multinational giants

A Dynamic Performance Management Approach to Evaluate and Support SMEs Competitiveness: Evidences from a Case Study

The role of Performance Management (PM) systems has become crucial for steering Small-Medium Enterprises (SMEs) to successfully compete during the ongoing critical economic transition. To improve decision-maker strategic learning processes, traditional PM frameworks need to be combined with System Dynamics (SD) modeling. This paper shows how to design and use a Dynamic Performance Management (DPM) approach to assess and support SMEs competitiveness. The emerging framework is applied to a real case of a small business to analyze the empirical effectiveness of the approach hereby suggested.

Applying System Dynamics Modelling to Strategic Management: A Literature Review

System dynamics (SD) has been proved to be a useful methodology to support both understanding and learning processes of complex systems and phenomena. Since its origin, SD has been successfully applied to many different fields of studies (e.g. climate change, physics, engineering, environmental sciences, economics, management, etc.). Among these, strategic management (SM) has a particular relevance as testified by several streams of research that originate from the combination between SD modelling and SM. The aim of this paper is to explore and discuss the theoretical and empirical development of SD in the SM field through a systematic analysis of the literature in order to highlight the ma…

Conceptualizing Innovative Business Planning Frameworks to Improving New Venture Strategy Communication and Performance. A Preliminary Analysis of the “Dynamic Business Model Canvas”

Business planning is a fundamental activity that start-up entrepreneurs are called to carry out in order to attract new investors, business angels, and venture capitalists, to subsidize a new business idea. The key-tool universally used to communicate a new venture strategy to these players, as well as to other stakeholders, is the business plan, i.e. a framework including the business idea description, the product(s), the market sector(s), the core-assets, the budget, the business sustainability and profitability, and so on. As such, a major success factor for drawing up a business plan is the capability to clearly and synthetically communicate the business strategy. Among the others, one …

Fostering growth patterns of SMEs through business model innovation. A tailored dynamic business modelling approach

Abstract In the contemporary complex and fast-changing markets, there is persistent pressure for Small-and-Medium Enterprises (SMEs) to engage in business model innovation to promptly meet customer expectations and successfully compete for survival. In the last decade, multiple approaches to business model development and innovation have been explored. However, they have been primarily designed for large-sized companies, while SMEs display distinctive organizational attributes. Thus, SMEs require a tailored approach to design, experiment and innovate their business models, in order to frame the specific complexity of their value creation processes. This paper aims to explore how a Dynamic B…

An exploration of digital ride-hailing multisided platforms' market dynamics: empirical evidence from the Uber case study

PurposeThe purpose of this paper is to experiment a dynamic performance management (DPM) approach to explore and assess the business dynamics of digital ride-hailing platforms with a focus on both supply and demand sides, and related interplays.Design/methodology/approachThe research adopts the DPM framework supported by simulation-based experimentations for developing a systemic case interpretation of Uber Inc. and its specific business complexity.FindingsThe emerging scenario analysis reveals that changes in the commission percentage for drivers and cutting prices for customers (car hailers) by competitors have significant impacts on the car-hailing industry.Originality/valueDPM and assoc…

Managing Sustainable Performance and Governance in Higher Education Institutions : A Dynamic Performance Management Approach

This book aims to cover about a decade of research activities devoted to university management, exploring its specific organizational complexity, and adopting systemic approaches to managing its performance generation mechanisms. It also draws on the field experience spent as the academic delegate for scientific support to strategic planning, management control, performance evaluation, and statistical reporting at the University of Palermo, Italy. This work is included in a series on “System Dynamics for Performance Management.” The fast-changing evolutionary process of global higher education systems systematically poses new challenges related to the appearance of innovative elements that …

Sistemi di governo e di valutazione della performance per l'azienda "Università"

Modeling the natural gas supply chain for sustainable growth policy

Abstract Natural gas has been used globally as a transitional fuel for supporting a green-energy-supply strategy, which has been questioned for the intermittence and lack of reliability of renewables. This paper proposes a System Dynamics model for assessing alternative security of supply policy along the natural gas value chain. The model incorporates demand, transport, production and reserves of natural gas variables according to a systemic perspective. It also includes a module for evaluating the effect of natural gas price on the demand and supply levels, respectively. Alternative supply policies are evaluated under different scenarios. The chosen case-study focuses on the Colombian nat…

Adopting a Dynamic Performance Governance Approach to Frame Interorganizational Value Generation Processes into a University Third Mission Setting

In recent years, the literature on Higher Education policy and management emphasized an increasingly entrepreneurial role played by Universities in contributing to the socio-economic development of their regional and local areas. Besides Education and Research, this crucial role identifies a Third Mission to be fulfilled by Higher Education Institutions (HEIs), which entails social engagement, networking and collaboration with other stakeholders to generate sustainable community outcomes. This chapter introduces the use of the Dynamic Performance Governance approach to analyze the academic network value generation processes underlying Third Mission activities in Universities. The emerging f…

Improving performance measurement/management in Academic Institutions: a dynamic resource-based view. Insights from a field project

Supporting public sector management through simulation-based methods: a dynamic performance management approach

AbstractThough it draws a number of precursors, simulation-based techniques applied to traditional performance management frameworks constitute a novel approach to support public sector institutions in framing organizational performance dynamics and, as a result, improving public service delivery. This paper aims at contributing to the improvement of the outcomes achievable from the use of traditional performance management systems in the public sector by combining them with a simulation-based method named System Dynamics modeling. Such an approach is called Dynamic Performance Management.

La misurazione della performance accademica: un'analisi applicata al "costo standard per studente in corso"

The recent introduction of the “standard cost per regular student”, as a criterion adopted by the Italian Ministry of Education to measure public university performance, implies a deep afterthought of those methods underlying the design of performance management and measurement systems in Italian universities. This has also to be extended – through a systemic perspective – to the evaluation of the Third Mission activities influencing the corresponding socio-economic context. With the intent to support a diagnostic activity related to the academic performance, this paper aims at introducing a system of output-outcome indicators – within a consistent framework – oriented to measure the driver…

A dynamic simulation approach to frame drivers and implications of corruption practices on firm performance

Corruption is a multifaceted socio-economic phenomenon widely spread - although with different intensity - all around the world. Many studies on corruption have been conducted at a country-level, but relatively little effort has been placed in evaluating its implications, in terms of both financial and competitive performance, at a firm-level. Therefore, this paper aims at exploring the causal relationships underlying the effect of corruption on firm performance in order to show the different scenarios that may emerge from the combination between external (i.e., contextual conditions) and internal (i.e., organizational characteristics) forces that drive corruption. To this end, we adopt a D…

Incentive-based Policies, Human Resource Motivation and Performance of Public Organizations: a System Dynamics Approach

Designing a Multi‐Sided Platform business model assessment framework: a Dynamic Performance Management perspective

The purpose of this research is to offer an assessment framework to validate multisided platform business models. For this aim, we propose a systemic perspective based on the dynamic performance management approach. This approach is particularly effective to make explicit the net of relationships between internal and external strategic resources, the value creation and capture drivers, and the way such drivers influence platform performances. The developed multisided platform business model assessment framework has been tested by using a success and a failure case, respectively, Airbnb and Take Eat Easy. Research originality results from the combination of multisided platform value creation…

Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models

In the last decade, business models for sustainability have gained increasing attraction by corporate sustainability scholars with international conferences and scientific journals encouraging the development of the debate on their design, use and innovation processes. Capitalizing on the basic principles, requirements, and methodological limitations found in the literature on sustainability‐oriented business model design, this paper aims to conceptualize a dynamic business modeling for sustainability approach, which combines an adapted sustainable business model canvas and system dynamics modeling. To this end, the paper also illustrates the key operating principles of the proposed approac…

A System Dynamics Approach to Evaluate Incentive-based Policies, Human Resource Motivation and Performance of Public Sector Organizations

This paper tries to analyze - through a System Dynamics approach - positive and negative effects caused by human resources‘ (de)motivation in terms of productivity and quality of performance in public sector organizations. Therefore, motivation is here meant as an inclination to fill a gap between a desired and an actual level of productivity; this can be achieved through a set of policies aimed to encourage, sustain and address human resource behaviour in a working setting. As a consequence of such policies, public sector organizations would increase their productivity and effectiveness, thereby improving the level of wealth to the community they work for. But how does work motivation infl…

THE “ENTREPRENEURIAL UNIVERSITY”: A PRELIMINARY ANALYSIS OF THE MAIN MANAGERIAL AND ORGANISATIONAL FEATURES TOWARDS THE DESIGN OF PLANNING & CONTROL SYSTEMS IN EUROPEAN ACADEMIC INSTITUTIONS

In the last decade, European academic institutions have been affected by significant reforms aimed to improve their own performance levels. The reason for these reforms has been inspired by various factors, such as budgetary restrictions imposed by National Governments and the “marketisation” of the Higher Education sector. This has led European universities to increase their autonomy and accountability to successfully perform and compete in a worldwide competitive system. Both autonomy and accountability have involved a greater emphasis on performance management and Planning & Control (P&C) systems. In the light of the new institutional and competitive context, the aim of this paper is to …

L’analisi delle politiche di riduzione dei cesarei attraverso il dynamic performance management: La valutazione del percorso nascita in un’azienda sanitaria

Da tre decenni l'Organizzazione Mondiale della Sanità considera appropriata una percentuale di cesarei tra il l 0-1 5%. Tuttavia, molti Paesi tuttora si trovano a fronteggiare valori molto più elevati e le politiche adottate dai decisori pubblici spesso mostrano di essere poco efficaci. Il presente lavoro prende avvio dall'analisi del percorso nascita introdotto in Sicilia e propone il ricorso all'approccio del Dynamic Performance Management per investigare le cause sottostanti l'andamento dei parti cesarei. Lo studio ha consentito di costruire un modello di System Dynamics, successivamente personalizzato con i dati di un'azienda sanitaria. L'analisi dei risultati delle simulazioni evidenzi…

Business model innovation for the Sustainable Development Goals

Business model innovation can be a key driver to realizing the transformation needed to achieve the United Nations Sustainable Development Goals (SDGs). At the same time, the SDGs can support organizations as they identify and tackle opportunities for business model innovation. This study uses a constructive research method to build a managerial approach that supports business model innovation for the SDGs. The approach helps organizations assess their contribution to the SDGs, explore and prioritize SDG-oriented business opportunities and risks, and formulate business model innovation strategies accordingly. The proposed approach was developed through participatory action research conducte…

A Dynamic Viewpoint to Design Performance Management Systems in Academic Institutions: Theory and Practice

This article illustrates how to design and apply Performance Management systems in academic institutions by identifying and modeling those factors affecting academic performance through a dynamic performance management view. Particularly, combining performance management with System Dynamics modeling may allow academic decision-makers to better identify key performance drivers for pursuing a sustainable performance improvement in universities. In the second section of the article, a number of examples based on empirical findings from a field project aimed at designing a dynamic performance management model for the University of Palermo (Italy) are discussed.

How to support energy policy coordination? Findings from the Brazilian wind industry

Abstract Despite a growing sense of urgency, the deployment of clean technologies has been affected by fragmentation of energy policy design and implementation. In some case, wicked policy issues around renewable energy infrastructure have delayed or even halted the uptake of renewables. To find possible answer to consistent policy design that involves public/private institutions of the electricity sector, the authors propose the adoption of a dynamic performance management approach to support the energy policy coordination.

Il “costo standard unitario di formazione per studente in corso” a supporto della progettazione delle politiche e strategie accademiche secondo una prospettiva bilanciata output-outcome

La recente introduzione del “costo standard di formazione per studente in corso” quale criterio per la valutazione ministeriale degli atenei impone un profondo ripensamento delle metodologie e degli schemi sottostanti alla progettazione dei sistemi di governo e di misurazione della performance adottati all’interno delle università italiane. Tale ripensamento deve essere esteso – attraverso una prospettiva sistemica – anche alla valutazione delle attività di Terza Missione che producono un impatto sul territorio di riferimento. Con l’obiettivo di supportare l’attività di diagnosi e la successiva ridefinizione delle politiche e strategie delle istituzioni accademiche, il presente studio mira …

Business model innovation for the SDGs: Towards a performance measurement system

Business model innovation can be a key element for realizing the transformation needed to accomplish the Sustainable Development Goals. However, literature on Sustainable Business Models still lacks quantitative-oriented approaches and tools supporting the implementation and assessment of business model innovations for sustainability. This study proposes an eight-phase performance measurement system supporting organisations in implementing, assessing and managing business model innovations aiming at contributing to the Sustainable Development Goals. The performance measurement system builds upon literature on business model innovation for sustainability, performance measurement and manageme…

Experimenting lean dynamic performance management systems design in SMEs

Purpose The purpose of this paper is to frame the potential benefits of lean dynamic performance management (PM) systems for small and micro-enterprises. Such systems may exploit the entrepreneur’s tacit knowledge and build on managerial competencies, by incorporating individual attributes into organisational routines. Design/methodology/approach The paper suggests the use of insight models based on the combination of lean PM tools and system dynamics (SD) modelling. Based on a number of exemplary cases, the paper discusses the potential benefits of these models, in respect to four specific contexts: artisan, new company start-up, established firm and micro-giant company. Related to such c…

Analyzing Business Dynamics of Ride-Hailing Services: A DPM Approach Applied to Uber Inc.

Purpose – The purpose of this paper is to explore business dynamics of a rising ride-hailing service industry through case study and foster understanding of hypothetical feedback effects within the broader system. Design/methodology/approach – The research adopts the dynamic performance management framework with simulation-based methodology for developing a dynamic case interpretation of specific type of business complexity. Findings – Scenario analysis shows that changes in the commission percentage for drivers, and cutting prices for customers (car hailers) by competitors have significant impacts on the car hailing industry. Research limitations – The findings of our analysis are limited …

Using simulation to analyze renewables penetration in Brazil

In the new global economy, renewable energy has become a central issue for the competitive. Renewables are the main source of the Brazilian electricity generation sector. This article analyzes the vulnerabilities of hydropower generation and wind power penetration in Brazil. The study presents the results obtained from preliminary analyses of renewable energy’s market penetration in Brazil. Simulation results show the climate variation effects on hydroelectricity generation as well as wind power penetration.

Turning a business idea into a real business through an entrepreneurial learning approach based on dynamic start-up business model simulators

In this paper we argue that the use of System Dynamics modelling applied to Business Model design and representation may result in an entrepreneurial learning approach to support potential entrepreneurs in exploring and learn how a business operates and reacts according to alternative strategic choices. As such, a Dynamic Business Modelling approach provides useful insights to start-up entrepreneurs learning processes by capturing and explaining how critical Business Model elements interact to produce enduring competitive advantages over time.

Blending Collaborative Governance and Dynamic Performance Management to Foster Policy Coordination in Renewable Energy Supply Chains

As the use of renewable energy is growing worldwide, the wind industry is being endorsed as a promising source for clean energy supply. In this context, the strategic management of the supply chain is fundamental to pursue a steady expansion of renewable energy. However, the fragmentation between energy policy design and implementation has been considered as a major cause threatening the effectiveness in managing the supply chain. This problem has been provoked mainly by an unsynchronized and uncoordinated decision-making process that involves public and private institutions. This chapter proposes the adoption of a dynamic performance management approach for enhancing a collaborative govern…

Supporting the natural gas supply chain public policies through simulation methods: A dynamic performance management approach

Natural gas is considered the transitional fuel par excellence between fossil and renewable sources, considering its low cost, greater efficiency and lesser impact on the environment. This is the reason why its demand levels have increased worldwide, requiring intervention of public and private stakeholders in order to meet these increments. The participation of diverse interconnected stakeholders (key actors) of the supplier-client form, constitutes a supply chain for natural gas, in which the effects of the application of public policy actions can be analysed in the time, using Dynamic Performance Management DPM methodology. The results of the model show the behaviour of the reserves, pro…

Using simulation to Analyze wind power penetration: The case of North and Northeast Brazil

Brazil is rich in renewable sources that can be used for energy generation. The renewable source of energy generation predominantly in Brazil is hydropower. However, the availability of hydropower depends on the useful volume reserves, which is subject to rainfall. Consequently, wind power is a renewable source that is being integrated into the electricity-interconnected system in Brazil. The growth of wind power generation depends on the financial resources and the delays in transmission projects. Despite the Brazilian incentives policy in wind power, the insufficient of transmission infrastructure affects to electricity price in electricity market. This paper addresses the effects of the …

Designing dynamic performance management systems to foster SME competitiveness according to a sustainable development perspective: empirical evidences from a case-study

The role of performance management (PM) systems has become crucial for steering small-medium enterprises (SMEs) to successfully compete during the ongoing critical economic transition. To improve decision-maker strategic learning processes, traditional PM frameworks need to be combined with system dynamics (SD) modelling. This paper shows how to design and use a dynamic performance management (DPM) approach to assess and support SMEs competitiveness according to a sustainable development perspective. The emerging framework is applied to a real case of an Italian small business to analyse the empirical effectiveness of the approach hereby suggested.

Designing Performance Management Systems in Academic Institutions: a Dynamic Performance Management View

This paper illustrates how to design and implement performance management systems in universities by identifying and modeling those factors impacting on academic performance through a dynamic performance management view. Particularly, combining performance management with System Dynamics modeling may allow academic decision-makers to better identify key-performance drivers for pursuing a sustainable performance improvement in universities. In the second section of the paper, a number of examples based on empirical findings from a field project aimed at designing a dynamic performance management model for the University of Palermo are discussed.

Assessing the effect of transmission constraints on wind power expansion in northeast Brazil

Abstract The rapid growth of the wind industry in Brazil presents new opportunities and challenges for its electricity industry. As new capacity becomes available, more transmission infrastructure is required for security of supply. The Brazilian electricity system has experienced congestion in the northeast region, affecting the coordinated expansion of transmission and new wind power capacity. This paper uses a simulation model for better assessing long-term policy synchrony of the wind industry. The simulation shows that the resulting prices are competitive in the middle to long terms.

EFFECTS OF THE PENETRATION OF WIND POWER IN THE BRAZILIAN ELECTRICITY MARKET

Climate variability has been the main driver for renewables in the Brazilian electricity market. This article analyzes the vulnerabilities of the dependence on hydropower in renewable energy production due to climate variation, as well as wind power penetration in Brazil, given a set of wind industry policies. Despite Brazilian renewable energy increase, the study shows the impact in energy supply in north region, due to the lack of transmission infrastructure. In Brazil, the potential trade-offs between renewables growth, and transmission infrastructure inconsistencies in terms of policy implementation are not yet well analyzed. Simulation results show the potential conflicts between energ…

Alternative Energy Policy for Mitigating the Asynchrony of the Wind-Power Industry’s Supply Chain in Brazil

High dependency on hydroelectricity has revealed drawbacks in the security of power supplies as a consequence of the climate variability in South America. Under these conditions, Brazil is starting to consider alternative renewable sources for energy production, seeking to avoid periods of scarcity while also promoting clean technologies in its electricity market. Since 2004, wind power has shown a significant rise in terms of installed capacity in this country. Despite increases in wind-power units, Brazil suffers from delays in setting up its transmission infrastructure, which affects the performance of the wind-power supply chain. This chapter presents a simulation model that helps asses…

Designing Outcome-Based Performance Management Systems to Assess Policies Impacting on Caesarean Section Rate: An Analysis of the Sicilian Maternity Pathway

The reduction in Caesarean sections (CSs) is widely considered a priority in the public decision makers agenda. Though the World Health Organisation has strongly encouraged countries to implement policies to reduce CSs to 10–15%, after almost thirty years this goal appears still far from its achievement. The literature depicts CS as a multifaceted phenomenon whose causes involve different factors, ranging from the patient sphere to the health care level of services provided, and the societal preference of CS practice. Policy makers aiming to standardise cares and to reduce CSs often implement maternity pathways (MP). By investigating the MP introduced in the Sicilian region, the authors hig…

Introducing a strategic perspective in lean thinking applications through system dynamics modelling: the dynamic Value Stream Map

PurposeLean Thinking is an operation management discipline which aims to identify, map and analyse the activities forming a process to detect “value waste” and outline the most effective flow of activities to execute in sequence. Process mapping is often developed in lean projects through the use of the Value Stream Map (VSM). Like many other management tools, the VSM adopts a static and non-systemic perspective in the representation of an organizational process. This may result in the implementation of Lean projects inconsistent with the overall organizational long-term strategy, thus leading to dysfunctional performance. In order to overcome this limit, the paper suggests combining VSM wi…

Combining system dynamics modelling and management control systems to support strategic learning processes in SMEs: a Dynamic Performance Management approach

Traditional management control systems, mainly centred on accounting-based measures, are widely recognized as useful tools to support Small and Medium Enterprises (SMEs) managers and entrepreneurs in steering business development. However, due to the increasing turbulence and dynamic complexity that characterize today’s competitive arenas, such systems need to be combined with simulation-based methodologies in order to improve entrepreneurial learning processes and, as a result, better detect possible crisis symptoms and weak signals of change—emerging from the business environment—to promptly react. Therefore, the aim of this paper is to show how a combination of traditional management con…

Applying System Dynamics Modelling to Strategic Management: A Literature Review

System dynamics (SD) has been proved to be a useful methodology to support both understanding and learning processes of complex systems and phenomena. Since its origin, SD has been successfully applied to many different fields of studies (e.g. climate change, physics, engineering, environmental sciences, economics, management, etc.). Among these, strategic management (SM) has a particular relevance as testified by several streams of research that originate from the combination between SD modelling and SM. The aim of this paper is to explore and discuss the theoretical and empirical development of SD in the SM field through a systematic analysis of the literature in order to highlight the ma…

Framing Caesarean Section Reduction Policies Through a Dynamic Performance Management Approach: A Maternity Pathway Case-Based Analysis

The World Health Organization since the last three decades strongly encourages countries to reduce the caesarean section (CS) rate down to 10–15%. However, this goal nowadays appears still far from its achievement. Public decision-makers are indeed struggling to design and implement effective policies to reduce the CS rate. The literature provides a wide range of factors causing a change in the CS rate, such as the patient clinical profile and the healthcare service quality provided. Maternity pathway (MP) is considered a mean through which to standardize the cares and to reduce CSs. This study investigates the MP recently introduced in Sicilian local health authorities. Based on such an an…

Il dynamic business model: una prospettiva dinamica per la progettazione dei modelli di business

Building on the extant literature on business modelling and focussing on start-up firms, this article aims at exploring the combination between conventional business model schemes and System Dynamics methodology with the intent to overcome those limitations related to a static design approach. By mapping the multiple key elements underlying value creation processes – linked according to a cause-and-effect perspective – and with the support of a simulation-based methodology, entrepreneurs may experiment and understand how the firm reacts to strategic and organizational changes in terms of performance, innovation and value creation.

Tackling wicked problems in performance management and governance of public health: an empirical analysis of COVID-19 vaccination strategies

PurposePublic health strategies and activities are intrinsically complex. According to the literature, this “wickedness” depends on the different interests and expectations of the stakeholders and the community, the fragmented governance of the related services and the challenges in measuring and assessing public health outcomes. Existent performance measures and management systems for public health are not designed to cope with wickedness since they are mainly focused on inputs and outputs, neglecting broader outcomes because of their long-term impact and the poor accountability of results. This research aims to tackle this shortfall by adopting a dynamic performance management (DPM) appro…

Benefits from energy policy synchronisation of Brazil’s North-Northeast interconnection

Abstract During the last 10 years Brazil has accelerated the incorporation of new wind capacity into its power matrix. This situation has generated the need for increased transport capacity. However, there have been delays in the planning process for new transmission line construction, thus inducing trapped electricity in the system; in other words, electricity that cannot be dispatched to the interconnected system. Using system dynamics modelling, this paper assesses energy policy alternatives for improving the synchronisation between the construction of both power generation and transmission capacities. Simulation results show that policy synchronisation within the wind industry may provi…

Strategia e innovazione delle PMI italiane: quali condizioni possono influenzarne il successo competitivo? Il caso Mosaicoon S.p.A.

A Dynamic Simulation Approach to Frame Drivers and Implications of Corruption Practices on Firm Performance

Corruption is a multifaceted socio-economic phenomenon widely spread – although with different intensity – all around the world. Many studies on corruption have been conducted at a country-level, but relatively little effort has been placed in evaluating its implications, in terms of both financial and competitive performance, at a firm-level. Therefore, this paper aims at exploring the causal relationships underlying the effect of corruption on firm performance in order to show the different scenarios that may emerge from the combination between external (i.e., contextual conditions) and internal (i.e., organizational characteristics) forces that drive corruption. To this end, we adopt a D…