IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v27y2018i4p767-776.html
   My bibliography  Save this article

A comparative study of the application of systems thinking in achieving organizational effectiveness in Malaysian and Pakistani banks

Author

Listed:
  • Akhtar, Ch. Shoaib
  • Awan, Sajid Hussain
  • Naveed, Shaheryar
  • Ismail, Kamariah

Abstract

The present work is a comparative study of the banking industry of Malaysia and Pakistan. The paper aims to measure the impact of individual systems thinking on the overall organizational effectiveness. Skilled individuals are considered as an asset of the organization especially when these individuals exhibit systems thinking capabilities that helps in achieving effectiveness. The sample consisted of 368 respondents belonging to lower and middle tier levels in the banking sector of both countries. The results indicate that Malaysian banking employees are ahead of their counterparts in Pakistan while applying systems thinking. The study is significant in enhancing the understanding of the importance of systems thinking for organizational effectiveness. The study has managerial implications for the top management of banks.

Suggested Citation

  • Akhtar, Ch. Shoaib & Awan, Sajid Hussain & Naveed, Shaheryar & Ismail, Kamariah, 2018. "A comparative study of the application of systems thinking in achieving organizational effectiveness in Malaysian and Pakistani banks," International Business Review, Elsevier, vol. 27(4), pages 767-776.
    • Handle: RePEc:eee:iburev:v:27:y:2018:i:4:p:767-776
    DOI: 10.1016/j.ibusrev.2018.01.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593117300653
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2018.01.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lutuf Ali Phulpoto & Aisha Bashir Shah & Faiz Muhammad Shaikh, 2012. "Global Financial Crises and its Impact on Banking Sector in Pakistan," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 2(6), pages 142-152.
    2. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    3. Fainshmidt, Stav & Nair, Anil & Mallon, Mark R., 2017. "MNE performance during a crisis: An evolutionary perspective on the role of dynamic managerial capabilities and industry context," International Business Review, Elsevier, vol. 26(6), pages 1088-1099.
    4. Guy L. F. Holburn & Bennet A. Zelner, 2010. "Political capabilities, policy risk, and international investment strategy: evidence from the global electric power generation industry," Strategic Management Journal, Wiley Blackwell, vol. 31(12), pages 1290-1315, December.
    5. Arthur T. Denzau & Douglass C. North, 1994. "Shared Mental Models: Ideologies and Institutions," Kyklos, Wiley Blackwell, vol. 47(1), pages 3-31, February.
    6. Philip Anderson, 1999. "Perspective: Complexity Theory and Organization Science," Organization Science, INFORMS, vol. 10(3), pages 216-232, June.
    7. Max Boisot & John Child, 1999. "Organizations as Adaptive Systems in Complex Environments: The Case of China," Organization Science, INFORMS, vol. 10(3), pages 237-252, June.
    8. M. Bensaou, 1997. "Interorganizational Cooperation: The Role of Information Technology an Empirical Comparison of U.S. and Japanese Supplier Relations," Information Systems Research, INFORMS, vol. 8(2), pages 107-124, June.
    9. Papakitsos, Evangelos C., 2016. "Systemic modelling for relating labour market to vocational education," International Journal for Research in Vocational Education and Training (IJRVET), European Research Network in Vocational Education and Training (VETNET), European Educational Research Association, vol. 3(3), pages 166-184.
    10. Carl F. Fey & Daniel R. Denison, 2003. "Organizational Culture And Effectiveness: Can American Theory Be Applied In Russia?," William Davidson Institute Working Papers Series 2003-598, William Davidson Institute at the University of Michigan.
    11. Robert Fabac, 2010. "Complexity in Organizations and Environment - Adaptive Changes and Adaptive Decision-Making," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 8(1), pages 34-48.
    12. Nicoleta Liliana ROBU, 2015. "The Usage Of System Dynamics In Strategic And Operational Decisions In The Financial Sector," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 5(4), pages 16-25, December.
    13. Daniel R. Denison & Aneil K. Mishra, 1995. "Toward a Theory of Organizational Culture and Effectiveness," Organization Science, INFORMS, vol. 6(2), pages 204-223, April.
    14. Honohan,Patrick & Laeven,Luc (ed.), 2005. "Systemic Financial Crises," Cambridge Books, Cambridge University Press, number 9780521851855.
    15. Gómez, Carolina, 2004. "The influence of environmental, organizational, and HRM factors on employee behaviors in subsidiaries: a Mexican case study of organizational learning," Journal of World Business, Elsevier, vol. 39(1), pages 1-11, February.
    16. Budhwar, Pawan S., 2000. "Indian and British personnel specialists' understanding of the dynamics of their function: an empirical study," International Business Review, Elsevier, vol. 9(6), pages 727-753, December.
    17. Markman, Gideon M. & Venzin, Markus, 2014. "Resilience: Lessons from banks that have braved the economic crisis—And from those that have not," International Business Review, Elsevier, vol. 23(6), pages 1096-1107.
    18. O'Reilly, Charles A., III & Tushman, Michael L., 2013. "Organizational Ambidexterity: Past, Present and Future," Research Papers 2130, Stanford University, Graduate School of Business.
    19. David B. Zoogah & Raymond A. Noe & Oded Shenkar, 2015. "Shared mental model, team communication and collective self-efficacy: an investigation of strategic alliance team effectiveness," International Journal of Human Rights and Constitutional Studies, Inderscience Enterprises Ltd, vol. 4(4), pages 244-270.
    20. Vahlne, Jan-Erik & Jonsson, Anna, 2017. "Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): Case studies of AB Volvo and IKEA," International Business Review, Elsevier, vol. 26(1), pages 57-70.
    21. Wang, Q. & von Tunzelmann, N., 2000. "Complexity and the functions of the firm: breadth and depth," Research Policy, Elsevier, vol. 29(7-8), pages 805-818, August.
    22. Vasconcelos, Flávio C. & Ramirez, Rafael, 2011. "Complexity in business environments," Journal of Business Research, Elsevier, vol. 64(3), pages 236-241, March.
    23. Lutuf Ali Phulpoto & Aisha Bashir Shah & Faiz Muhammad Shaikh, 2012. "Global Financial Crises and its Impact on Banking Sector in Pakistan," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 2(6), pages 142-152, June.
    24. Carl F. Fey & Daniel R. Denison, 2003. "Organizational Culture and Effectiveness: Can American Theory Be Applied in Russia?," Organization Science, INFORMS, vol. 14(6), pages 686-706, December.
    25. Nicola Cetorelli & Linda S. Goldberg, 2014. "Measures of global bank complexity," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 107-126.
    26. William Young & Fiona Tilley, 2006. "Can businesses move beyond efficiency? The shift toward effectiveness and equity in the corporate sustainability debate," Business Strategy and the Environment, Wiley Blackwell, vol. 15(6), pages 402-415, November.
    27. Sabrina Schneider & Patrick Spieth, 2013. "Business Model Innovation: Towards An Integrated Future Research Agenda," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-34.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jaffar Abbas & Iftikhar Hussain & Safdar Hussain & Sabahat Akram & Imrab Shaheen & Ben Niu, 2019. "The Impact of Knowledge Sharing and Innovation on Sustainable Performance in Islamic Banks: A Mediation Analysis through a SEM Approach," Sustainability, MDPI, vol. 11(15), pages 1-25, July.
    2. Morteza Nagahi & Niamat Ullah Ibne Hossain & Raed Jaradat & Vidanelage Dayarathna & Chuck Keating & Simon Goerger & Michael Hamilton, 2022. "Classification of individual managers' systems thinking skills based on different organizational ownership structures," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(2), pages 258-273, March.
    3. Sajid Hussain Awan & Nazia Habib & Chaudhry Shoaib Akhtar & Shaheryar Naveed, 2020. "Effectiveness of Performance Management System for Employee Performance Through Engagement," SAGE Open, , vol. 10(4), pages 21582440209, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Verdu-Jover, Antonio J. & Alos-Simo, Lirios & Gomez-Gras, Jose-Maria, 2018. "Adaptive culture and product/service innovation outcomes," European Management Journal, Elsevier, vol. 36(3), pages 330-340.
    2. Yanica Dimitrova, 2018. "The Culture of Innovation Model," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 39-68.
    3. Ricciardi, Francesca & Zardini, Alessandro & Rossignoli, Cecilia, 2016. "Organizational dynamism and adaptive business model innovation: The triple paradox configuration," Journal of Business Research, Elsevier, vol. 69(11), pages 5487-5493.
    4. Yilmaz, Cengiz & Ergun, Ercan, 2008. "Organizational culture and firm effectiveness: An examination of relative effects of culture traits and the balanced culture hypothesis in an emerging economy," Journal of World Business, Elsevier, vol. 43(3), pages 290-306, July.
    5. Kwantes, Catherine T. & Boglarsky, Cheryl A., 2007. "Perceptions of organizational culture, leadership effectiveness and personal effectiveness across six countries," Journal of International Management, Elsevier, vol. 13(2), pages 204-230, June.
    6. Bortolotti, Thomas & Boscari, Stefania & Danese, Pamela, 2015. "Successful lean implementation: Organizational culture and soft lean practices," International Journal of Production Economics, Elsevier, vol. 160(C), pages 182-201.
    7. Tiago Melo, 2012. "Determinants of corporate social performance: the influence of organizational culture, management tenure and financial performance," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 8(1), pages 33-47, March.
    8. Shepherd, Dean A. & Breugst, Nicola & Patzelt, Holger, 2023. "A founding-team model of creating a venture's culture," Journal of Business Venturing, Elsevier, vol. 38(2).
    9. Ziad F. Elsahn & Maureen Benson-Rea, 2018. "Political Schemas and Corporate Political Activities During Foreign Market Entry: A Micro-process Perspective," Management International Review, Springer, vol. 58(5), pages 771-811, October.
    10. Ignacio Gómez Roldán & Rafael Guillermo Ricardo Bray, 2009. "Similarities and differences existing in cultural profiles of colombian organizations of higher and lower performance," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, June.
    11. Mathew, Jossy & Ogbonna, Emmanuel & Harris, Lloyd C., 2012. "Culture, employee work outcomes and performance: An empirical analysis of Indian software firms," Journal of World Business, Elsevier, vol. 47(2), pages 194-203.
    12. Boumediene Ramdani & Ahmed Binsaif & Elias Boukrami & Cherif Guermat, 2022. "Business models innovation in investment banks: a resilience perspective," Asia Pacific Journal of Management, Springer, vol. 39(1), pages 51-78, March.
    13. Naor, Michael & Jones, Janine Sanders & Bernardes, Ednilson S. & Goldstein, Susan Meyer & Schroeder, Roger, 2014. "The culture-effectiveness link in a manufacturing context: A resource-based perspective," Journal of World Business, Elsevier, vol. 49(3), pages 321-331.
    14. Alpay, Güven & Bodur, Muzaffer & YIlmaz, Cengiz & Çetinkaya, Saadet & ArIkan, Laçin, 2008. "Performance implications of institutionalization process in family-owned businesses: Evidence from an emerging economy," Journal of World Business, Elsevier, vol. 43(4), pages 435-448, October.
    15. Morgulis-Yakushev, Sergey & Yildiz, H. Emre & Fey, Carl. F., 2018. "When same is (not) the aim: A treatise on organizational cultural fit and knowledge transfer," Journal of World Business, Elsevier, vol. 53(2), pages 151-163.
    16. Mazur Jolanta & Zaborek Piotr, 2016. "Organizational Culture and Open Innovation Performance in Small and Medium-sized Enterprises (SMEs) in Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 51(1), pages 104-138, September.
    17. Zheng, Wei & Yang, Baiyin & McLean, Gary N., 2010. "Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management," Journal of Business Research, Elsevier, vol. 63(7), pages 763-771, July.
    18. Peters, Matt D. & Wieder, Bernhard & Sutton, Steve G., 2018. "Organizational improvisation and the reduced usefulness of performance measurement BI functionalities," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 1-15.
    19. Tahira Rasheed & Arshad Zaheer & Sadaf Manzoor, 2021. "Do Narcissists Tend to Reduce Interpersonal Conflicts in Organizations? The Effects of Abusive Supervision on Ostracism and Interpersonal Conflicts," Journal of Economics and Behavioral Studies, AMH International, vol. 12(6), pages 43-58.
    20. Muhammad Imran Hanif & Muhammad Shahzad Hani & Asif Kamran & Rabia Khan & Shao Yunfei, 2016. "Knowledge Sharing And Innovation Performance Affected By Hr Generic Strategies: An Empirical Study Of Smes In China And Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 12(1), pages 272-306.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:27:y:2018:i:4:p:767-776. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.