Organizational Performance as A Systemic Construct
Abstract
This study reconceptualizes organizational performance through the lens of systems thinking, arguing that conventional financial and efficiency-based approaches are increasingly inadequate for capturing the complexity of contemporary organizations. In response, this study develops a systemic conceptualization of performance as a multidimensional and emergent construct. Drawing on classical and contemporary contributions to systems theory, the analysis conceptualizes the organization as a complex sociotechnical system composed of interdependent subsystems embedded within dynamic environments. Within this framework, performance is not treated as a static outcome but as a dynamic property emerging from continuous interactions between internal structures and external conditions. This article examines the evolution of performance theories, from traditional financial models to multidimensional frameworks such as the Competing Values Framework, and discusses contemporary measurement approaches, including the Balanced Scorecard and sustainability-oriented frameworks. It ultimately proposes a systemic conception of performance structured around a viability-performance matrix, emphasizing feedback loops, adaptive capacity, and structural tensions between stability and flexibility. This study contributes to management theory by bridging systems thinking and performance literature, with implications for organizational design, governance, and sustainability-oriented management.