A study of cognitive management issues at the business ventures targeting the business in the new field, using a causal loop diagram

Abstract

Business ventures have the characteristics of conducting business focusing on a specific growth market. In the growth process, several issues emerge that are inherent to business ventures in the new field, namely, new product development and / or new service introduction. For the business ventures, developing business in the new field impacts the sustainability of the enterprise. The business ventures need specific characteristics to achieve this sustainability. Those characteristics vary according to the competitive condition of the market. However, there have been only few empirical comparisons on this subject in the past. This paper identifies business characteristics that business ventures targeting the business in the new field based on the transformation of finance and cognitive management issues. A causal loop diagram analysis, which is one of the System Dynamics tools, is used to identify the underlying major factors which influence the sustainability of the business. The analysis shows the problems of cognitive management issues and the associated countermeasures.