Systemic Governance: A Systematic Review of the Use of Systems Thinking In Public Policy Governance Structure

Abstract

Governance increasingly faces problems whose complexity, interdependence, and pace exceed the reach of linear, control-based approaches. This paper investigates how Systems Thinking (ST) is used in public policy governance structures. Despite the growing use of ST in public policy governance, two main gaps remain in the literature. 1) The absence of a systematic mapping of how ST is operationalized in public policy governance and of the consolidation of its theoretical insights into integrated governance functions. 2) The limited integration between ST-based diagnostic insights and the prescriptive design of viable governance arrangements. To address these gaps, a systematic review of 48 documents was conducted following the PRISMA 2020 guidelines, and the documents were retrieved from Web of Science, Scopus, and Elicit. The findings are synthesized along eight analytical dimensions: wicked problems, methodologies, system pathologies, frameworks, organizational learning, policy, governance systems, and variety and viability. These dimensions are consolidated into four governance functions: reframing the challenge, designing viable structures, operationalizing tools and guides, and enabling adaptive policy learning. The corresponding research gaps are identified. Building on this synthesis, the paper introduces the concept of cybernetic state capacity, defined as the integrated institutional ability to sense environmental variety, coordinate across recursive levels, learn from feedback, and adapt over time. The paper contributes to theory by mapping how ST is used in public policy governance and by framing four research gaps that orient a future research agenda focused on the prescriptive design of viable governance arrangements. The paper contributes to practice by clarifying, for three audiences, namely 1) policymakers, 2) public sector managers, and 3) governance researchers and consultants, the methodological resources, particularly the Viable System Model, Critical Systems Heuristics, Soft Systems Methodology, and System Dynamics, available when designing governance arrangements for complex policy domains.