Abstract

Purpose: 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, such as public transport, education, and 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 inter-relations of changes triggered by COVID-19 outbreak. Understanding of this complexity is crucial for developing business resilience to similar events in the future. Methodology: The paper uses Systems Thinking approach to analyse influence of COVID-19 pandemic on business operations. Causal loop diagrams are used to show the complicated mechanisms behind the impact of pandemic on several aspects of business operation and management. Findings: Causal loop diagrams indicate that complicated relations between various elements may produce surprising and unexpected outcomes. The existing delays may result in actions bringing counterintuitive results. Perceptions of some variables play more important roles than actual variables and it often requires more than one actor to solve a particular problem – hence the need for organisational, as well as social learning. Adaptive business management may prove to be a particular challenge for small business owners. Research limitations: The paper is mostly of a conceptual nature. Causal loop diagrams require extensive data in order to be transformed into full Systems Thinking models. Hence this paper may serve as a basis for further development. Practical implications: 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 by business owners/managers. Originality/value: The paper links one of the major current challenges for the global economy with Systems Thinking, which offers a holistic perspective on business operation and management with emphasis on linkages and interactions between numerous stakeholders involved. It offers food for thought not only for academics, but also to business owners/managers, aware of the complexity of contemporary world

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