Investigation of the variables affecting the competitiveness of the sawmill industry and their interactions using systems dynamics modelling

Abstract

The sawmill industry, just like many other industries, is a complex system with several variables at play. This complexity impacts strategy implementation and decision-making in the individual sawmills. The study aimed to examine the different variables interacting with each other and impacting decision-making in the sawmill industry. The study made use of primary and secondary data. The primary data was collected through an industry survey sent to managerial staff members across different sawmills in South Africa. Based on the literature reviewed, secondary data was used to construct the systemigram and causal loop diagram. The research revealed that the sawmill industry is a complex system comprising different elements that complicate decision-making for sawmill management. This is due to many variables that affect strategy implementation in the pursuit of firm and industry competitiveness. This study’s use of systems dynamics tools, such as a systemigram and causal loop diagram, ensured the system’s complexity was adequately mapped out. Future studies should involve sawmilling stakeholder engagements to validate the proposed causal loop diagram further and explore ways to improve strategy implementation in the sawmill industry.