How can systems thinking help us in the COVID‐19 crisis?

Abstract

The COVID‐19 pandemic outbreak remains one of the most influential events in the global economy over the recent years. While being primarily public health related, it has a tremendous impact on many other aspects, including business management. Many businesses were forced to introduce rapid changes to their business models in order to survive. The aim of this paper is to show the complexity and interrelations of changes triggered by COVID‐19 outbreak. Understanding of this complexity is crucial for developing business resilience to similar events in the future. The paper uses systems thinking approach to analyze influence of COVID‐19 pandemic on business operations and to show the importance of the proper government response to the COVID‐19 crisis. A causal loop diagram is used to show the complicated mechanisms behind the impact of pandemic on several aspects of business operation and management. Perceptions of some variables play more important roles than actual variables, and it often requires more than one actor to solve a particular problem. Adaptive business management may prove to be a particular challenge for small business owners. The paper provides useful insights into the complex nature of contemporary business operation and management in the wake of a major epidemiological crisis. It may contribute to a better understanding of important factors that often tend to be disregarded and not paid enough attention to. It offers food for thought not only for academics, but also to business owners/managers, aware of the complexity of contemporary world and to government‐level decision‐makers.