Title: Assessing the Viable System Model: an empirical test of the viability-hypothesis

Authors: Cristina I. Crisan Tran

Addresses: University of St. Gallen, Institute of Management Dufourstrasse 40a, CH-9000 St. Gallen, Switzerland

Abstract: This paper attempts to explore whether Stafford Beer|s Viable System Model (VSM) explains the viability of start-ups. The assumption that the five structural components of the VSM (Systems 1-5) positively influence the viability of start-ups has been tested empirically. Neither each individual hypothesis for every system could be confirmed nor could the total structure of the VSM be falsified. However, the results indicate that strategic management (System 4) has the most positive and significant influence on the viability of start-ups. The present study makes the VSM accessible for quantitative empirical research and contributes substantially to overcome criticism concerning the abstractness of the model.

Keywords: VSM; viable system model; LISREL; organisational cybernetics; startups viability; strategic management.

DOI: 10.1504/IJASS.2008.022795

International Journal of Applied Systemic Studies, 2008 Vol.2 No.1/2, pp.66 - 81

Published online: 26 Jan 2009 *

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