"System dynamics approach to evolution and process of corporate political action"
The fields of industrial management and business studies have been actively borrowing ideas from the study of complex systems. Especially pertinent has been system dynamics approaches ever since 1970’s. Despite this long history of modeling approaches to management and business issues there still remain quite a few research gaps in the current knowledge. This paper takes a systems thinking approach to studying political actions corporations and enterprises are carrying out in their operations. This is a special class of operations and actions of a firm that has multiple actors (though very restricted in numbers), and multiple possibilities to carry out these actions and operations and multiple choices for actions and operations. Therefore, this is a typical situation in human systems that represents dynamic complexity with low level of combinatorial complexity. We approach the corporate political action (CPA) from an evolutionary, processual point of view and present a propositional inventory in a form of system dynamics model. Our model includes several levels of actors and ties the corporation into industry level as well as society and international level and further larger environmental context. Feedback loops are explicitly considered in order to present the processual outcomes of actions of a corporation. The model facilitates more detailed analysis of this special class of operations that corporations engage in.