Factors affecting the adoption of systems thinking

Systems' thinking has received considerable attention over the last several decades; however, the adoption of systems thinking as an approach to creating competitive advantages is still lagging. The objective of this research is to test whether the adoption of systems thinking leads to an organization's competitive capabilities and the quality of the products produced. An investigative model linking the organizational factors of systems thinking (i.e., institutional efficacy, self-efficacy, organizational and environmental evolution, and organizational culture and climate) to the organization's competitive capabilities and quality of the products is proposed. Structural equation modelling is used to test the model. Thirteen hypotheses are tested, of which seven are accepted. The sample consists of 130 organizations. Six constructs (i.e., institutional efficacy, self-efficacy, organizational and environmental evolution, organizational culture and climate, competitive capabilities, and the quality off products) are tested, providing important lessons for managers and researchers in systems thinking.