A system dynamics model for sustainable corporate strategic planning

Abstract

Paper aims: This paper presents a manufacturing process model for assessing the effects on economic, social, and environmental targets, given variations on corporate strategies of production, innovation, marketing, and demand for final goods. Originality: The model integrates economic, social, and environmental dimensions that are validated through three main scenarios: Business as Usual (no strategic application), Business as Investment (strategic application), and Business as Vision (changes in demand). Research method: The model estimates the social, environmental, and economic performance through time based on the System Dynamics methodology. Main findings: The results demonstrate the model’s suitability as a decision-support tool for sustainability planning in a corporate environment. Implications for theory and practice: The model facilitates the analysis of the effects of resource allocation on corporate strategy.