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Structural Inertia And Organizational Change

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Abstract

Considers structural inertia in organizational populations as an outcome of an ecological-evolutionary process. Structural inertia is considered to be a consequence of selection as opposed to a precondition. The focus of this analysis is on the timing of organizational change. Structural inertia is defined to be a correspondence between a class of organizations and their environments. Reliably producing collective action and accounting rationally for their activities are identified as important organizational competencies. This reliability and accountability are achieved when the organization has the capacity to reproduce structure with high fidelity. Organizations are composed of various hierarchical layers that vary in their ability to respond and change. Organizational goals, forms of authority, core technology, and marketing strategy are the four organizational properties used to classify organizations in the proposed theory. Older organizations are found to have more inertia than younger ones. The effect of size on inertia is more difficult to determine. The variance in inertia with respect to the complexity of organizational arrangements is also explored. (SRD)
... Indeed, organizational practices are constructed through routines and habits that inform behavior, work routines and practices. Over a period of time, inertia can become attached to work routines, leading to them becoming rigid, bound by past experience, internally resistant to change, and as a result, inertia reinforces the status quo [74][75][76]. ...
... Organizational inertia theory does not position that organizational change never occurs, but rather that the changes that are made reinforce inertia [76]. Indeed, organizations can have high levels of inertia either in the routines employed, in the defined rules used to transition between routines, or within their organizational memory [74]. Organizational inertia has characteristics of sluggishness [77], stickiness [76,78]; or viscosity where information and innovations fail to flow [79]. ...
... More widely across the literature, structural inertia, a form of lock-in, has been described as either internal within organizations or external within the wider environment [74]. Structural inertia has two main aspects, namely that the factors that may have the benefit of driving resilience and survival advantage can also make the organizations resistant to change. ...
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... Routine dynamics, a branch of routine scholarship, considers routines as actions with 'internal dynamics that contribute to both stability and change in organizations' (Feldman et al., 2016: 505). This branch has grown since the turn of the millennium (Feldman & Pentland, 2022) and distances itself from earlier understandings of routines as stable entities leading to organizational inertia (Hannan & Freeman, 1983). The routine dynamics perspective is thus grounded in a distinctly processual understanding studying the situated dynamics of routines (Dionysiou & Tsoukas, 2013;Parmigiani & Howard-Grenville, 2011) by exploring how recognizable patterns of actions change, emerge, replicate, and reproduce . ...
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