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Article
Publication date: 30 April 2024

Ying-Feng Kuo, Hsin-Hsien Liu and Tso-Hao Shen

Inaction inertia occurs when people are less likely to act on a similar but inferior option after missing a superior opportunity, compared to if they had not missed out. This…

Abstract

Purpose

Inaction inertia occurs when people are less likely to act on a similar but inferior option after missing a superior opportunity, compared to if they had not missed out. This study aims to explore how promotional formats and their sequence affect the inaction inertia effect in online shopping, under the assumption of economic equivalence.

Design/methodology/approach

The authors performed two online experiments and analyzed the data by analysis of variance.

Findings

The findings indicate that, under the premise of economic equivalence: Monetary promotions exhibit a higher inaction inertia effect on consumers than nonmonetary promotions. When consumers miss a more favorable promotion and subsequently encounter a relatively less attractive one presented in a different promotional format, the inaction inertia effect is lower than when reencountering the same promotion format. When consumers miss a better monetary promotion and presently encounter a relatively less attractive nonmonetary promotion, the inaction inertia effect is lower than when they miss a superior nonmonetary promotion and currently encounter a relatively less attractive monetary promotion.

Originality/value

This study reveals the sequence effects of promotional formats, indicating that nonmonetary promotions following monetary ones effectively reduce inaction inertia. A strategically sequenced set of formats enhances consumer recommendations, mitigating inaction inertia. These findings open new research paths, providing insights into the impact of promotional format sequences on the inaction inertia effect. Consequently, this knowledge helps e-retailers in implementing effective promotional strategies and driving online purchases.

Details

Journal of Consumer Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0736-3761

Keywords

Book part
Publication date: 3 October 2006

Martin Ruef

Although recent public attention has focused on boom-and-bust cycles in industries and financial markets, organizational theorists have made only limited contributions to our…

Abstract

Although recent public attention has focused on boom-and-bust cycles in industries and financial markets, organizational theorists have made only limited contributions to our understanding of this issue. In this chapter, I argue that a distinctive strategic insight into the mechanisms generating boom-and-bust cycles arises from a focus on entrepreneurial inertia – the lag time exhibited by organizational founders or investors entering a market niche. While popular perceptions of boom-and-bust cycles emphasize the deleterious effect of hasty entrants or overvaluation, I suggest instead that slow, methodical entries into an organizational population or market may pose far greater threats to niche stability. This proposition is explored analytically, considering the development of U.S. medical schools since the mid-18th century.

Details

Ecology and Strategy
Type: Book
ISBN: 978-1-84950-435-5

Article
Publication date: 1 November 2022

Zhiyong Li, Mang Long, Songshan (Sam) Huang, Zhaohan Duan, Yingli Hu and Rui Cui

This paper aims to examine the effect of consumer inertia – a tendency to adhere to prior purchase decisions despite the existence of preferable alternatives – on the…

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Abstract

Purpose

This paper aims to examine the effect of consumer inertia – a tendency to adhere to prior purchase decisions despite the existence of preferable alternatives – on the relationships between switching costs and customer retention, and explain the controversy within them in the context of budget hotels.

Design/methodology/approach

An empirical test was conducted via structural equation modelling based on 337 self-administered questionnaires from customers at six of Chinese popular budget hotels.

Findings

Consumer inertia was a significant mediator between switching costs and customer retention. Specifically, consumer inertia completely mediated the effects of financial switching costs on customer retention, but partially did between procedural switching costs and customer retention. By introducing consumer inertia, the explanatory power of customer retention improved significantly by 19%.

Originality/value

This paper clarifies the effects of multiple dimensions of switching costs on customer retention via the mediating role of consumer inertia and partly addresses the inconsistency in the prior studies from an inertia perspective.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 3
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 20 January 2021

Jacques Nel and Christo Boshoff

Digital-only banks are emerging as challenger banks to the traditional-bank business model in South Africa. However, traditional-bank customers could resist the use of…

2233

Abstract

Purpose

Digital-only banks are emerging as challenger banks to the traditional-bank business model in South Africa. However, traditional-bank customers could resist the use of digital-only banks, theoretically due to their satisfaction with the status quo. Consequently, inertia arising from bias to traditional banks based on status quo satisfaction could engender their resistance to become customers of digital-only banks. The objective of the study, therefore, is to investigate how traditional-bank customers' inertia influences digital-only bank resistance.

Design/methodology/approach

Based on a literature review, digital-only bank adoption barriers and cognitive-based initial distrusting beliefs were identified as mediators of the influence of inertia on digital-only bank resistance. To test the mediation model empirically, data was collected from 610 traditional-bank-only customers.

Findings

The five adoption barriers fully mediate the influence of inertia on cognitive-based initial distrusting beliefs. The five barriers in serial with cognitive-based initial distrusting beliefs partially mediate the influence of traditional-bank customers' inertia on digital-only bank resistance. Cognitive-based initial distrusting belief is an essential factor in the mechanism underlying the influence of traditional-bank customers' inertia on digital-only bank resistance.

Originality/value

Digital-only banks are relatively new. Research is therefore lacking in consumer behavior explaining the use of digital-only banks by traditional-bank customers in the South African context. A further novelty of the study is the empirical assessment of mechanisms that explain the influence of inertia on cognitive-based initial distrusting beliefs, and the influence of inertia on resistance behavior.

Details

International Journal of Bank Marketing, vol. 39 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 14 July 2020

Xiongfei Cao, Jingjing Yao and Xiayu Chen

Built upon the push–pull–mooring framework, this study explores the factors that affect user switching from blog to microblogging. Low social presence is posited to form the push…

Abstract

Purpose

Built upon the push–pull–mooring framework, this study explores the factors that affect user switching from blog to microblogging. Low social presence is posited to form the push effect of blog, whereas larger referent network size and relative ease of use work together to shape the pull effect of newly emerging microblogging. Furthermore, adopting the status quo bias theory and habit literature as theoretical lens, affective commitment, switching costs and habit are regarded as important sources of inertia. Inertia is presumed to play a key role in mooring effects because it negatively affects switching intention and attenuates the main effects of pull and push factors. More importantly, the effects of affective commitment, switching costs and habit on switching intention are fully mediated through inertia.

Design/methodology/approach

An empirical study of 239 users who use blog and microblogging services concurrently was conducted in China.

Findings

Our findings indicate that low social presence pushes bloggers away, whereas relative ease of use pulls them to the microblogging. Affective commitment, switching costs and habit are important sources of inertia. In the context of this study, inertia fully mediates the relationship between habit and switching intention, and only partially mediates the effect of affective commitment and switching costs on switching intention. Furthermore, inertia negatively moderates the relationships between social presence, relative ease of use and switching intention.

Originality/value

This study expands our understanding of online service switching mechanism, and identified key factors in IT switching, such as social presence, affective commitment and inertia. We believe that these mechanisms and key factors are not necessarily limited to online services, but are largely applicable to other contexts in which people interact with technology. This study builds a useful foundation for future research.

Details

Internet Research, vol. 30 no. 6
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 7 January 2021

Volkan Soner Özsoy

This paper aims to consider each strategy of the particle swarm optimization (PSO) as a unit in data envelopment analysis (DEA) and uses the minimax mixed-integer linear…

Abstract

Purpose

This paper aims to consider each strategy of the particle swarm optimization (PSO) as a unit in data envelopment analysis (DEA) and uses the minimax mixed-integer linear programming DEA approach to find the most suitable inertia weight strategy. A total of 15 inertia weight strategies were empirically examined in a suite of 42 benchmark problems in the view of DEA.

Design/methodology/approach

PSO is very sensitive to inertia weight strategies, and therefore, an important amount of research attempts has been concentrated on these strategies. There is no research into the determination of the most suitable inertia weight strategy; however, there are a large number of comparisons related to the inertia weight strategies. DEA is one of the performance evaluation methods, and its models classify the set of strategies into two distinct sets as efficient and inefficient. However, only one of the strategies should be used in the PSO algorithm. Some effective models were proposed to find the most efficient strategy.

Findings

The experimental studies demonstrate that an approach is a useful tool in the determination of the most suitable strategy. Besides, if the author encounters a new complex problem whose properties are known, it will help the author to choose the best strategy.

Practical implications

A heavy oil thermal cracking three lumps model for the simplification of the reaction system was used because it is an important complicated chemical process. In addition, the soil water retention curve (SWRC) plays an important role in diverse facets of agricultural engineering. As the SWRC can be regarded as a nonlinear function between the water content and the soil water potential, Van Genuchten model is proposed to describe this function. To determinate these model parameters, an optimization problem is formulated, which minimizes the difference between the measured and modeled data.

Originality/value

In this paper, the PSO algorithm is integrated with minimax mixed-integer linear programming to find the most suitable inertia weight strategy. In this way, the best strategy could be chosen for a new more complex problem.

Details

Engineering Computations, vol. 38 no. 4
Type: Research Article
ISSN: 0264-4401

Keywords

Article
Publication date: 21 October 2013

Šarūnas Nedzinskas, Asta Pundzienė, Solveiga Buožiūtė-Rafanavičienė and Margarita Pilkienė

This paper aims to examine the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic…

3670

Abstract

Purpose

This paper aims to examine the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic capabilities and organizational inertia in a volatile environment.

Design/methodology/approach

A quantitative survey was carried out in Lithuania's SME sector. In order to achieve the aim of this empirical research, a sample of 360 SMEs was analyzed.

Findings

This exploratory study offers a conceptual model for dynamic capabilities and organizational inertia in a volatile environment. The findings suggest that dynamic capabilities have positive effects on non-financial relative organizational performance, though no impact on financial relative organizational performance has been revealed. The authors argue that organizational inertia moderates dynamic capabilities and relative organizational performance.

Research limitations/implications

One suggestion for further research is to investigate the interaction between dynamic capabilities and organizational inertia in a stable environment and to perform longitudinal research embracing a broader sample of organizations.

Originality/value

The study addresses a gap in strategic management literature and practice, examining the interaction between SME dynamic capabilities and organizational inertia in a volatile environment during an economic crisis.

Details

Baltic Journal of Management, vol. 8 no. 4
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 7 January 2014

Victor Dos Santos Paulino

– The topic of the risk associated with innovation is being investigated through the influence of technological risk on technology adoption.

1122

Abstract

Purpose

The topic of the risk associated with innovation is being investigated through the influence of technological risk on technology adoption.

Design/methodology/approach

The paper analyses the dynamics of technology adoption in high technology products thanks to several regressions. The paper uses data gathered from a major European space integrator.

Findings

The paper shows that a firm may implement a reliability-based inertia strategy under a specific context. This type of inertia strategy is rational and leads a firm to limit the adoption of new technologies and favours the reuse of proven technologies. This strategy is relevant to facing a risk of decrease in technical reliability.

Research limitations/implications

While the space industry displays some similarities with other capital good industries, it remains specific compared to mass production industries. The current paper should be considered as a preliminary research that aims at structuring the notion of inertia strategy.

Practical implications

In order to increase the commercial demand, the paper proposes that satellite manufactures adopt more intensive reliability-based inertia strategy and institutional demand asks for less experimental satellites.

Originality/value

This paper contributes to show that delays in technology adoption should not systematically be regarded as a weakness. Implementing a strategy that aims at slowing down technology adoption may sometimes improve firm survival. The paper also intends to provide a new insight to the paradoxical nature of change.

Details

European Journal of Innovation Management, vol. 17 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 14 October 2013

Hao-Chen Huang, Mei-Chi Lai, Lee-Hsuan Lin and Chien-Tsai Chen

This study aims to examine how open innovation can be effective in changing organizational inertia to create business model innovation and improve firm performance. It also seeks…

9708

Abstract

Purpose

This study aims to examine how open innovation can be effective in changing organizational inertia to create business model innovation and improve firm performance. It also seeks to explore whether the existence of open innovation has a mediating effect and influence.

Design/methodology/approach

This study constructs a theoretical model to explore the relationship between latent variables and uses a questionnaire to collect research data. In the conceptual framework, organizational inertia is a second-order latent variable and comprises three first-order latent variables: insight inertia, action inertia, and psychological inertia. Open innovation is also a second-order latent variable, and consists of two first-order latent variables: outbound and inbound open innovation. To clarify the relationship between these latent variables, structural equation modeling (SEM) is used to test the goodness of fit of the theoretical model and research hypotheses. This study uses 141 small to medium-sized manufacturing enterprises (SMEs) in Taiwan as the research subjects.

Findings

The SEM analysis revealed that open innovation has a significant mediating effect on the relationship between organizational inertia and business model innovation, and the relationship between organizational inertia and firm performance; business model innovation also has a positive influence on firm performance.

Originality/value

This study contributes the empirical analysis of SMEs to illustrate the role of open innovation on business model innovation processes.

Details

Journal of Organizational Change Management, vol. 26 no. 6
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 24 March 2021

Mona Ashok, Mouza Saeed Mohammed Al Badi Al Dhaheri, Rohit Madan and Michael D. Dzandu

Knowledge management (KM) is associated with higher performance and innovative culture; KM can help the public sector to be fiscally lean and meet diverse stakeholders’ needs…

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Abstract

Purpose

Knowledge management (KM) is associated with higher performance and innovative culture; KM can help the public sector to be fiscally lean and meet diverse stakeholders’ needs. However, hierarchical structures, bureaucratic culture and rigid processes inhibit KM adoption and generate inertia. This study aims to explore the nature and causes of this inertia within the context of the United Arab Emirates (UAE) public sector.

Design/methodology/approach

Using an in-depth case study of a UAE public sector organisation, this study explores how organisational inertia can be countered to enable KM adoption. Semi-structured interviews are conducted with 17 top- and middle-level managers from operational, management and strategic levels. Interview data is triangulated with content analysis from multiple sources, including the UAE Government and case organisation documents.

Findings

The results show transformation leadership, external factors and organisational culture mediate the negative effect of inertia on KM practices adoption. We find that information technology plays a key role in enabling knowledge creation, access, adoption and sharing. Furthermore, we uncover a virtuous cycle between organisational culture and KM practices adoption in the public sector. In addition, we develop a new model (the relationship between KM practices, organisational inertia, organisational culture, transformational leadership traits and external factors) and four propositions for empirical testing by future researchers. We also present a cross-case comparison of our results with six private/quasi-private sector cases who have implemented KM practices.

Research limitations/implications

Qualitative data is collected from a single case study.

Originality/value

Inertia in a public section is a result of bureaucracy and authority bounded by the rules and regulations. Adopting a qualitative methodology and case study method, the research explores the phenomena of how inertia impacts KM adoption in public sector environments. Our findings reveal the underlying mechanisms of how internal and external organisational factors impact inertia. Internally, supportive organisational culture and transformational leadership traits positively effect KM adoption, which, in turn, has a positive effect on organisational culture to counter organisational inertia. Externally, a progressive national culture, strategy and policy can support a knowledge-based organisation that embraces change. This study develops a new model (interactions between internal and external factors impacting KM practices in the public sector), four propositions and a new two-stage process model for KM adoption in the public sector. We present a case-comparison of how the constructs interact in a public sector as compared to six private/quasi-private sector cases from the literature.

Details

Journal of Knowledge Management, vol. 25 no. 9
Type: Research Article
ISSN: 1367-3270

Keywords

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