Application of systems thinking and system dynamics in managing risks and stakeholders in construction projects: A systematic literature review

Abstract This paper conducts a systematic literature review on systems thinking (ST) and system dynamics (SD) applications in construction project risk and stakeholder management over the past decade. It evaluates current practices' alignment with SD, addressing project complexity and uncertainty. Seventy‐three articles are analysed following Preferred Reporting Items for Systematic Reviews and Meta‐Analysis (PRISMA) guidelines, using descriptive, thematic and bibliometric analyses. Findings show fluctuating trends in ST and SD applications due to COVID‐19 in 2019, with notable contributions from China, Australia and the UK. Building projects are the most studied, employing mixed methodologies. Thematic analysis highlights SD's significant role in system representation and risk management, with 80% of studies utilizing SD models for various risk factors. While less common in stakeholder management, SD enhances communication and understanding of stakeholder dynamics. The study advocates for integrating SD modelling in construction management for improved decision‐making, risk mitigation and stakeholder engagement for project management practitioners, urging collaboration between academia, industry and policymakers for effective construction policies. Academics and researchers should focus on standardizing SD modelling tools, exploring hybrid methodologies like agent‐based modelling, and integrating emerging technologies like artificial intelligence (AI) and the Internet of Things (IoT) to enhance real‐time decision‐making capabilities. Collaboration between academia, industry practitioners and policymakers is crucial to ensure SD research translates into effective policies and best practices, particularly in safety and environmental impact assessments.