Fostering sustainable performance in services through systems thinking

This paper aims to investigate the impact of designing service operations using the systems thinking approach on the sustainable performance of service organisations. Data was collected from a survey conducted with 183 service organisations that have implemented the systems thinking approach. Using Structural Equation Modelling, the results confirmed that using the systems thinking approach has a significant impact upon the environmental and social performances but has no direct effect on the economic performance of such organisations. The analysis also indicated a statistically positive relationship between environmental and economic performances and between social and economic performances, but not between environmental and social performances, thus suggesting that the dimensions of sustainable performance should not be viewed as being equally weighted. This study shows that the systems thinking approach ensures that the service system design is directly linked with enhanced environmental and social benefits while indirectly contributing to economic benefits.