Dynamic Performance Management: An Approach for Managing the Common Goods

TL;DR

This paper reviews how system dynamics, specifically dynamic performance management, can be used to improve the management of common goods in public organizations, highlighting research gaps and practical insights.

Contribution

It offers a comprehensive review of literature on dynamic performance management for common goods and identifies future research and practical opportunities.

Findings

Limited research on linking common goods regeneration and organizational performance

System dynamics is underutilized in managing common goods

Provides practical guidelines for adopting system dynamics in public organizations

Abstract

Public organizations need innovative approaches for managing common goods and to explain the dynamics linking the (re)generation of common goods and organizational performance. Although system dynamics is recognised as a useful approach for managing common goods, public organizations rarely adopt the system dynamics for this goal. The paper aims to review the literature on the system dynamics and its recent application, known as dynamic performance management, to highlight the state of the art and future opportunities on the management of common goods. The authors analyzed 144 documents using a systematic literature review. The results obtained outline a fair number of documents, countries and journals involving the study of system dynamics, but do not cover sufficient research on the linking between the (re)generation of common goods and organizational performance. This paper outlines academic and practical contributions. Firstly, it contributes to the theory of common goods. It provides insight for linking the management of common goods and organizational performance through the use of dynamic performance management approach. Furthermore, it shows scholars the main research opportunities. Secondly, it indicates to practitioners the documents providing useful ideas on the adoption of system dynamics for managing common goods.