A Systems Thinking Approach to Improving Firms’ Competitive Capabilities and Firm Performance

Abstract This research aims to establish how systems thinking (ST) can be used to develop firm competitive capabilities (CC) and improve firm performance (FP). The focus is on ST applications in the South African information and communications technology (ICT) industry. The methodology includes Structural text condensation of relevant literature combined with interviews involving a selection of participants. From the analysis, some of the key findings are that ST enables the firm to contextualize itself in the wider systems environment, which results in improvements in FP. The research stream is specifically on soft ST and its contribution to improvements in firm CC and FP. This research creates an opportunity for further research into how soft ST can be leveraged in delivering firm CC and improvements in FP. The theoretical contribution made in this paper is exploring the relationship/linkage between the different concepts of soft ST, CC and FP.