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TERRA ECONOMICUS

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  • Sustainable organizational development and human capital in the context of soft systems methodology

Sustainable organizational development and human capital in the context of soft systems methodology


TERRA ECONOMICUS, , Vol. 22 (no. 1),

As the world faces major challenges related to the climate change and geopolitical hurdles, soft systems methodology (SSM) and institutional factors offer a complex approach that might be helpful in achieving the sustainable development goals (SDGs) and are therefore gaining an increasing popularity in the research literature. By embracing the principles of SSM within the realm of institutional economics, academics and decision-makers can navigate through the complexities of real-world problems and devise effective strategies for addressing them. Understanding the intricate relationship between SSM and institutional economics offers a unique lens through which organizational performance and sustainability can be enhanced. This synergy, when explored and applied judiciously, provides a comprehensive framework that addresses not only the technical aspects of an organization but also its socio-economic dimensions. In the empirical part of the paper, a bibliometric analysis is used based on the sample of 76 documents indexed in Web of Science (WoS) database between 1995 and 2023. The network cluster analysis using the text data and the bibliometric data is employed using the VOSViewer software for network analysis. The results show that as the economic and social processes are becoming more robust, SSM and institutional economics are currently returning to the spotlight of the academic research focused on topics such as organizational performance and sustainability as well as sustainable human capital efficiency.
Citation: Strielkowski W., Kuzmin E., Suvorova A., Gorlova O. (2024). Sustainable organizational development and human capital in the context of soft systems methodology. Terra Economicus22(1), 137–150. DOI: 10.18522/2073-6606-2024-22-1-137-150
Acknowledgment: This research was supported by the Russian Science Foundation grant No. 23-28-01768.


Keywords: soft system methodology; institutional economics; sustainable development; human capital; bibliometrics; network cluster analysis

JEL codes: B52, J24, O15, P50

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  • Chan, C. (2023). A comprehensive AI policy education framework for university teaching and learning. International Journal of Educational Technology in Higher Education 20(1), 1–25. DOI: 10.1186/s41239-023-00408-3
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  • Checkland, P., Poulter, J. (2020). Soft systems methodology. In: Reynolds, M., Holwell, S. (eds.) Systems Approaches to Making Change: A Practical Guide. London: Springer. DOI: 10.1007/978-1-4471-7472-1_5
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  • Coase, R. (2013). The problem of social cost. The Journal of Law and Economics 56(4), 837–877. DOI: 10.1086/674872
  • Cradock-Henry, N., Connolly, J., Blackett, P., Lawrence, J. (2020). Elaborating a systems methodology for cascading climate change impacts and implications. MethodsX 7, 100893. DOI: 10.1016/j.mex.2020.100893
  • Dahesh, M., Tabarsa, G., Zandieh, M., Hamidizadeh, M. (2020). Reviewing the intellectual structure and evolution of the innovation systems approach: A social network analysis. Technology in Society 63, 101399. DOI: 10.1016/j.techsoc.2020.101399
  • D’Amore, G., Di Vaio, A., Balsalobre-Lorente, D., Boccia, F. (2022). Artificial intelligence in the waterenergy-food model: a holistic approach towards sustainable development goals. Sustainability 14(2), 867. DOI: 10.3390/su14020867
  • Dumitriu, D., Militaru, G., Deselnicu, D., Niculescu, A., Popescu, M. (2019). A perspective over modern SMEs: Managing brand equity, growth and sustainability through digital marketing tools and techniques. Sustainability 11(7), 2111. DOI: 10.3390/su11072111
  • Ercantan, O., Eyupoglu, S. (2022). How do green human resource management practices encourage employees to engage in green behavior? Perceptions of university students as prospective employees. Sustainability, 14(3), 1718. DOI: 10.3390/su14031718
  • Eweje, G., Sajjad, A., Nath, S., Kobayashi, K. (2021). Multi-stakeholder partnerships: A catalyst to achieve sustainable development goals. Marketing Intelligence & Planning, 39(2), 186-212. DOI: 10.1108/MIP-04-2020-0135
  • Faller, P., Lundgren, H., Marsick, V. (2020). Overview: why and how does reflection matter in workplace learning? Advances in Developing Human Resources 22(3), 248–263. DOI: 10.1177/1523422320927295
  • Garg, S., Sinha, S., Kar, A., Mani, M. (2022). A review of machine learning applications in human resource management. International Journal of Productivity and Performance Management 71(5), 1590–1610. DOI: 10.1108/IJPPM-08-2020-0427
  • Grewatsch, S., Kennedy, S., Bansal, P. (2023). Tackling wicked problems in strategic management with systems thinking. Strategic Organization 21(3), 721–732. DOI: 10.1177/14761270211038635
  • He, Q., Wang, Z., Wang, G., Zuo, J., Wu, G., Liu, B. (2020). To be green or not to be: How environmental regulations shape contractor greenwashing behaviors in construction projects. Sustainable Cities and Society 63, 102462. DOI: 10.1016/j.scs.2020.102462
  • Hegab, H., Khanna, N., Monib, N., Salem, A. (2023). Design for sustainable additive manufacturing: A review. Sustainable Materials and Technologies e00576. DOI: 10.1016/j.susmat.2023.e00576
  • Hodgson, G. (1998). The approach of institutional economics. Journal of Economic Literature 36(1), 166–192
  • Jackson, M. (2023). Critical systems practice 4: Check-Evaluating and reflecting on a multimethodological intervention. Systems Research and Behavioral Science 40(4), 617–632. DOI: 10.1002/sres.2912
  • Kineber, A., Antwi-Afari, M., Elghaish, F., Zamil, A., Alhusban, M., Qaralleh, T. (2023). Benefits of implementing occupational health and safety management systems for the sustainable construction industry: a systematic literature review. Sustainability 15(17), 12697. DOI: 10.3390/su151712697
  • Kish, K., Mallery, D., Haage, G., Melgar-Melgar, R., Burke, M., Orr, C., Larson, J. (2021). Fostering critical pluralism with systems theory, methods, and heuristics. Ecological Economics 189, 107171. DOI: 10.1016/j.ecolecon.2021.107171
  • Lamé, G., Jouini, O., Stal-Le Cardinal, J. (2020). Combining soft systems methodology, ethnographic observation, and discrete-event simulation: A case study in cancer care. Journal of the Operational Research Society 71(10), 1545–1562. DOI: 10.1080/01605682.2019.1610339
  • Li, Z., She, J., Guo, Z., Du, J., Zhou, Y. (2024). An evaluation of factors influencing the community emergency management under compounding risks perspective. International Journal of Disaster Risk Reduction 100, 104179. DOI: 10.1016/j.ijdrr.2023.104179
  • Lin, C., Wittmer, J., Luo, X. (2022). Cultivating proactive information security behavior and individual creativity: The role of human relations culture and IT use governance. Information & Management 59(6), 103650. DOI: 10.1016/j.im.2022.103650
  • Lohman, L. (2020). Using soft systems thinking to craft instructional design and technology interventions. TechTrends 64(5), 720–729. DOI: 10.1007/s11528-020-00536-x
  • Martin, A., O’Meara, P. (2020). Community paramedicine through multiple stakeholder lenses using a modified soft systems methodology. Australasian Journal of Paramedicine 17, 1–11. DOI: 10.33151/ajp.17.793
  • Martín, E., Giordano, R., Pagano, A., Van Der Keur, P., Costa, M. (2020). Using a system thinking approach to assess the contribution of nature based solutions to sustainable development goals. Science of the Total Environment 738, 139693. DOI: 10.1016/j.scitotenv.2020.139693
  • Mayhew, A. (2018). An introduction to institutional economics: Tools for understanding evolving economies. The American Economist 63(1), 3–17. DOI: 10.1177/0569434517749157
  • Ménard, C., Shirley, M. (2014). The future of new institutional economics: from early intuitions to a new paradigm? Journal of Institutional Economics 10(4), 541–565. DOI: 10.1017/S174413741400006X
  • Murphy, K. (2020). Performance evaluation will not die, but it should. Human Resource Management Journal 30(1), 13–31. DOI: 10.1111/1748-8583.12259
  • Nicolini, D., Pyrko, I., Omidvar, O., Spanellis, A. (2022). Understanding communities of practice: Taking stock and moving forward. Academy of Management Annals 16(2), 680–718. DOI: 10.5465/annals.2020.0330
  • North, D. (1990). Institutions, Institutional Change, and Economic Performance. Cambridge: Cambridge University Press
  • North, D. (1994). Economic performance through time. The American Economic Review 84(3), 359–368.
  • North, D. (2016). Institutions and economic theory. The American Economist 61(1), 72–76. DOI: 10.1177/0569434516630194
  • Ormerod, R., Yearworth, M., White, L. (2023). Understanding participant actions in OR interventions using practice theories: A research agenda. European Journal of Operational Research 306(2), 810–827. DOI: 10.1016/j.ejor.2022.08.030
  • Ostrom, E. (1990). Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge: Cambridge University Press.
  • Otenyo, E., Lind, N., Jones, L. (eds.) (2006). Comparative Public Administration: The Essential Readings. London: Emerald Group Publishing.
  • Petracca, E., Gallagher, S. (2020). Economic cognitive institutions. Journal of Institutional Economics 16(6), 747–765. DOI: 10.1017/S1744137420000144
  • Pham, N., Hoang, H., Phan, Q. (2020). Green human resource management: a comprehensive review and future research agenda. International Journal of Manpower 41(7), 845–878. DOI: 10.1108/IJM-07-2019-0350
  • Rai, S., Rai, S., Singh, N. (2021). Organizational resilience and social-economic sustainability: COVID-19 perspective. Environment, Development and Sustainability 23, 12006–12023. DOI: 10.1007/s10668-020-01154-6
  • Rana, G., Sharma, R. (2019). Emerging human resource management practices in Industry 4.0. Strategic HR Review 18(4), 176–181. DOI: 10.1108/SHR-01-2019-0003
  • Reddy, V., Chiranjeevi, T., Syme, G. (2020). Inclusive sustainable intensification of agriculture in West Bengal, India: Policy and institutional approaches. International Journal of Agricultural Sustainability 18(1), 70–83. DOI: 10.1080/14735903.2019.1698489
  • Ren, S., Jackson, S. (2020). HRM institutional entrepreneurship for sustainable business organizations. Human Resource Management Review 30(3), 100691. DOI: 10.1016/j.hrmr.2019.100691
  • Ribeiro, N., Nguyen, T., Duarte, A., de Oliveira, R., Faustino, C. (2020). How managerial coaching promotes employees’ affective commitment and individual performance. International Journal of Productivity and Performance Management 70(8), 2163–2181. DOI: 10.1108/IJPPM-10-2018-0373
  • Salavati, S., Mirijamdotter, A., Elm, P., Perez, M. (2021). Coordinated SSM: An adaptation of the SSM learning cycle. Systems 9(3), 49. DOI: 10.3390/systems9030049
  • Silalahi, M., Walsh, S. (2023). Analyzing government policies in addressing unemployment and empowering workers: Implications for economic stability and social welfare. Law and Economics 17(2), 92–110. DOI: 10.35335/laweco.v17i2.3
  • Singh, S., Singh, S., Koohang, A., Sharma, A., Dhir, S. (2023). Soft computing in business: exploring current research and outlining future research directions. Industrial Management & Data Systems 123(8), 2079–2127. DOI: 10.1108/IMDS-02-2023-0126
  • Slattery, O., Trubetskaya, A., Moore, S., McDermott, O. (2022). A review of lean methodology application and its integration in medical device new product introduction processes. Processes 10(10), 2005. DOI: 10.3390/pr10102005
  • Strielkowski, W., Popov, E. (2017). Economic modelling in institutional economic theory. Journal of Institutional Studies 9(2), 18–28. DOI: 10.17835/2076-6297.2017.9.2.018-028
  • Strielkowski, W., Kuzmin, E., Suvorova, A., Nikitina, N., Gorlova, O. (2023). Organizational economic sustainability via process optimization and human capital: A soft systems methodology (SSM) approach. arXiv preprint, 2311.17882. DOI: 10.48550/arXiv.2311.17882
  • Strielkowski, W., Samoilikova, A., Smutka, L., Civín, L., Lieonov, S. (2022). Dominant trends in intersectoral research on funding innovation in business companies: A bibliometric analysis approach. Journal of Innovation & Knowledge 7(4), 100271. DOI: 10.1016/j.jik.2022.100271
  • Vahdat, S. (2022). The role of IT-based technologies on the management of human resources in the COVID-19 era. Kybernetes 51(6), 2065–2088. DOI: 10.1108/K-04-2021-0333
  • Venter, C. (2020). A reflection on SSM as a critical social action research method: Towards improvement of project governance. Electronic Journal of Business Research Methods 18(2), 142–152. DOI: 10.34190/JBRM.18.2.006
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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606