Abstract for:Dynamics of Institutional Change

Institutionalization of System Dynamics (SD) for the strategy formulation process in managing wicked problems has seen little success despite wide application to economic, energy, ecological, and business systems (Ford, 1997; Lyneis, 1999; Sterman, 2000; Rouwette, Vennix, & Mullekom, 2002; Dwyer & Stave, 2008; Stave, 2010). Organisational interventions based on the SD approach prove successful in their immediate contribution to a specific solution regarding a complex problem by providing novel systemic insights, commitment for shared action and initiation of change (see for example Lane, 1992; Vennix, 1996; Lyneis, 1999; Rouwette et al., 2002). Despite the proved short term project success, only few clients continue to use SD methodology for further analysis. System Dynamics thus often falls short of being institutionalized within the client's organisation (Größler, 2007). Institutionalization in this research is defined as a behavior that is performed by two or more individuals, persists over time, and exists as a part of the daily functioning of the organization (Goodman & Dean Jr., 1981). Applied to SD, institutionalization comprises the solidification of the methodology within the structure and processes of the client organisation.