System approach in enterprise researches: application of soft system methodology

According to the evidence, the conventional quantitative reductionist research methodology was failed in explaining complex and intertwined issues of enterprise development. In this situation, the system approach to holistic research in the field of entrepreneurship and enterprise is needed. The purpose of this study is to introduce a systems approach in enterprise and entrepreneurship researches, with an emphasis on Soft System Methodology and its foundations, including participatory action research and conceptual modeling. SSM is a methodology that allows support and structure the thinking and intervention on the complex enterprise problems. Indeed, the advantages of this methodology are that makes easier to structure problematic complex situations of enterprise and steers the researcher or system analyzer to obtain and share a realistic and holistic perception of internal and external environment of the enterprise. The SSM applies participatory action research as kind of Cooperative or collaborative inquiry for integrated collective learning, innovation and change in enterprise environment. In the SSM process, conceptual models were used in order to help people recognize, understand and simulate the enterprise subjects which the model represents. For this purpose, an innovative methodology was introduced for the conceptual modeling in the seven stages based on semantic analysis. As alternative, evolutionary systems - integration of critical systems inquiry with SSM- could be considered as a methodology which is applicable to the exploration of open complex social systems of enterprise with the capacity to evolve over time.