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Analytical thinking, Little's Law understanding, and stock‐flow performance: two empirical studies

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  • Rosa Hendijani

Abstract

Stocks and flows are the foundations of dynamic systems. Most people have difficulties inferring the behavior of a stock from its flows. Recent studies have argued that understanding of stock‐flows can improve if individuals engage in analytical thinking. In this study, we examine the effect of analytical thinking and the mediating effect of Little's Law understanding on stock‐flow performance. Little's Law is one of the fundamental laws of queueing systems. Queueing systems are made of stocks and flows and their components, including arrivals, departures, and queue are the inflow, outflow, and accumulation in stock‐flow systems. Thus, it can be predicted that grasping Little's Law can mediate the effect of analytical thinking on stock‐flow performance. In order to examine the research hypotheses, two empirical studies were designed. The results supported our hypotheses in both studies. Analytical thinking had a positive effect on stock‐flow performance. Little's Law understanding partially mediated this effect. © 2021 System Dynamics Society.

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  • Rosa Hendijani, 2021. "Analytical thinking, Little's Law understanding, and stock‐flow performance: two empirical studies," System Dynamics Review, System Dynamics Society, vol. 37(2-3), pages 99-125, April.
    • Handle: RePEc:bla:sysdyn:v:37:y:2021:i:2-3:p:99-125
    DOI: 10.1002/sdr.1685
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