Palaima, Tomas and Skarzauskiene, Aelita. (2010) Systems thinking as a platform for leadership performance in a complex world. Baltic Journal of Management, Vol.5 (No.3). pp. 330-355. ISSN 1746-5265

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Abstract

Purpose - Effective decision making and learning in a world of growing dynamic complexity requires leaders to become systems thinkers to develop tools to understand the structures of complex systems The paper aims to clarify the relationship between systems thinking and leadership performance The relevance of systems thinking as a competence was disclosed in the context of leadership in the complex world

Design/methodology/approach - The paper followed a quantitative research approach First, exploratory factor analysis was employed to assess dimensionality of scales Second relationships between variables were explored using Spearman s correlation Third, multiple linear regression was run to test the hypothesized model of relationships The total sample of 201 consists of subsamples in two industries retail trade (103 respondents) and manufacturing (98 respondents)

Findings - Based on the analysis and synthesis of the scientific literature, a conceptual model of relationship between intelligence competencies (such as systems thinking) and leadership performance is developed The theoretical model is supported by empirical evidence from the two industries perspectives the paper compares the impact of systems thinking on leadership performance in manufacturing and retail trade enterprises Correlational and regression analyses revealed that systems thinking was associated with higher leadership performance

Research limitations/implications - Because of the chosen research approach, the research results may lack generalizability First, the model was tested empirically only in two industries in retail trade and in manufacturing Second, the sample of this research was limited only to national level, therefore there is no possibility to compare results across different countries In order to generalize the research findings further research should include more companies from different industries

Practical implications - The paper discloses the benefits of systems thinking in organization and includes implications for the development of systems thinking and other leadership competencies

Originality/value - This paper establishes a link between systems thinking and leadership performance Theoretical insights that systems thinking is most important dealing with conceptual strategic problems of an organization were confirmed empirically

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	Baltic Journal of Management
Publisher:	Emerald Group Publishing Ltd
ISSN:	1746-5265
Official Date:	2010
Volume:	Vol.5
Number:	No.3
Number of Pages:	26
Page Range:	pp. 330-355
Identification Number:	10.1108/17465261011079749
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
URI:	http://wrap.warwick.ac.uk/id/eprint/4809

Data sourced from Thomson Reuters' Web of Knowledge

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