Unpacking the Drivers and Outcomes of Management Innovation Using System Dynamics: A Conceptual Approach

This study aims to investigate the dynamic mechanisms underlying management innovation by addressing the limitations of static models that overlook feedback loops and time delays. It aims to identify the key internal and external drivers that influence management innovation within organizations. Drawing on system dynamics principles, this study develops a causal loop diagram as a conceptual framework to explore the interrelationships among factors affecting management innovation. The approach highlights the reinforcing and balancing feedback loops, incorporating the effect of time delays between implementation and outcomes. The study reveals that management innovation operates through multiple reinforcing and balancing loops, driven by internal and external factors. It highlights how feedback mechanisms, resource constraints, and time delays shape the dynamic evolution of management innovation processes and organizational adaptability. The study provides theoretical and practical insights but is conceptual in nature; future empirical research across different industries is needed to validate and generalize the proposed framework. By applying a system dynamics lens, this study advances the theoretical understanding of management innovation processes and offers actionable guidance for managers and policymakers to foster sustainable management innovation.