Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change

The relationship between organizational change and performance is an important topic in strategic management. However, the way in which the process of organizational change affects organizational performance has been underestimated (Combe & Carrington, 2015). This study explores how Chief Execut...

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Main Authors: Yang, Miles, Young, S., Li, S., Huang, Y.
Format: Journal Article
Published: John Wiley and Sons Ltd 2016
Online Access:http://hdl.handle.net/20.500.11937/34323
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author Yang, Miles
Young, S.
Li, S.
Huang, Y.
author_facet Yang, Miles
Young, S.
Li, S.
Huang, Y.
author_sort Yang, Miles
building Curtin Institutional Repository
collection Online Access
description The relationship between organizational change and performance is an important topic in strategic management. However, the way in which the process of organizational change affects organizational performance has been underestimated (Combe & Carrington, 2015). This study explores how Chief Executive Officers' beliefs lead to organizational changes and then subsequently generate superior organizational performance, using General Electric Corporation as a case. We developed a detailed simulation model of GE, including human resources, financial and cost accounting, research and development, and operations. Historical information and archival data were used to specify and formulate the model. The results show that a Chief Executive Officer's belief system can impact a firm's strategic decisions and financial performance both in the short and long term. In the short term, leaders' beliefs influence the strategies of the company and can be beneficial to financial outcomes. In the long term, leaders' beliefs may protect the company from future failures.
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publishDate 2016
publisher John Wiley and Sons Ltd
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spelling curtin-20.500.11937-343232017-09-13T15:14:33Z Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change Yang, Miles Young, S. Li, S. Huang, Y. The relationship between organizational change and performance is an important topic in strategic management. However, the way in which the process of organizational change affects organizational performance has been underestimated (Combe & Carrington, 2015). This study explores how Chief Executive Officers' beliefs lead to organizational changes and then subsequently generate superior organizational performance, using General Electric Corporation as a case. We developed a detailed simulation model of GE, including human resources, financial and cost accounting, research and development, and operations. Historical information and archival data were used to specify and formulate the model. The results show that a Chief Executive Officer's belief system can impact a firm's strategic decisions and financial performance both in the short and long term. In the short term, leaders' beliefs influence the strategies of the company and can be beneficial to financial outcomes. In the long term, leaders' beliefs may protect the company from future failures. 2016 Journal Article http://hdl.handle.net/20.500.11937/34323 10.1002/sres.2394 John Wiley and Sons Ltd unknown
spellingShingle Yang, Miles
Young, S.
Li, S.
Huang, Y.
Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change
title Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change
title_full Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change
title_fullStr Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change
title_full_unstemmed Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change
title_short Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change
title_sort using system dynamics to investigate how belief systems influence the process of organizational change
url http://hdl.handle.net/20.500.11937/34323