Open systems theory, or seeing an organization as an open and networked structure that is part of and affected by external environments, can offer a new organizational structure model for arts and cultural organizations that can lead to enhanced performance both in financial and non-financial areas. This conceptual article offers propositions of open systems theory applied to arts and cultural organizations, specifically in organizational structure and performance effectiveness. These new insights open up an alternative paradigm toward how internal aspects of organizations not only affect internal measures of performance, but ultimately affect external measures of how an organization serves its mission and community.
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