Determining the Factors to Improve Sustainable Performance in a Medium-Sized Organization

Abstract

Small- and medium-sized organizations rely heavily on their internal configuration to achieve sustainable performance. However, their internal structure often represents an obstacle to achieving that goal. To help organizations achieve sustainable performance, we develop a research framework using the viable system model (VSM) to evaluate the relationship between organizational factors. We adopt a systems perspective: (1) The VSM serves as a theoretical foundation to define factors to be evaluated through a conceptual model; (2) social network analysis to obtain information for the conceptual model; (3) partial least squares path modeling to test the proposed model with 150 employees; and (4) VSM to suggest changes. The nine hypotheses are supported, suggesting that improving sustainable performance is related to adopting a network structure and focusing on relational factors to reduce inconsistencies between operations and coordination systems. This article differs from previous studies, as it proposes a methodological coupling to assist decision-makers in improving organizational balance and performance. Additionally, it can encourage academics to reconsider structural factors, enabling them to allocate resources more precisely and enhance effectiveness.