Revisiting Systems Thinking and Productivity in SMEs: Challenges and Opportunities

Abstract

Small and Medium Enterprises (SMEs) play a vital role in driving economic development, particularly in emerging economies. However, many SMEs encounter challenges related to productivity, often stemming from fragmented processes, limited coordination, and reactive decision-making. This article revisits systems thinking as a strategic approach to enhance productivity within SMEs. Based on an integrative review of relevant literature, the study explores the obstacles SMEs face in adopting systems thinking and identifies opportunities for integrating this methodology into small business operations. Findings indicate that while systems thinking can facilitate improved collaboration, efficiency, and adaptability, practical barriers—such as limited expertise, abstract conceptual frameworks, and resource constraints—may impede its implementation. Nonetheless, targeted strategies—including SME-specific training, simplified models, and digital tools—can facilitate adoption. This work contributes to the ongoing discussion on sustainable SME development by emphasizing the need for accessible systems thinking frameworks that foster resilience and competitiveness.