The contribution of systems theory to sustainability in degrowth contexts: The role of subsystems

Abstract The earth and the natural world have physical limits. Thus, industries or firm systems operating on this planet have limits as well. Infinite growth is intrinsically impossible. Some firms have integrated these principles into their management methods while struggling to survive in a traditional competitive environment with short‐term economic constraints. This paper explores the managerial practices that help firm systems address these paradoxical tensions of being responsible for the environment and having a long‐term degrowth orientation while also successfully competing in traditional capitalistic markets. Using a social system approach, the paper applies functional differentiation focusing on the internal aspects of the management of the firm. The paper highlights that the role of each subsystem can be crucial for integrating the survival of the firm system and the natural system';; limits. Each subsystem has a potential effect on the natural system that can be analysed and managed in a specific way.