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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.

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.

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

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%.

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.

This study aims to investigate the direct effect of intellectual capital on the organizational performance of Indonesian state-owned enterprises (SOEs) and their subsidiaries. Furthermore, it also examines whether the relationship is mediated by open innovation and moderated by organizational inertia.

This study is designed as quantitative research. A survey method is employed to collect data by distributing questionnaires to the upper-level managers of the SOEs and their subsidiaries. A total of 293 questionnaires were distributed to the respondents, and 97 responses were obtained for further analysis. The partial least square structural equation modeling (PLS-SEM) is used to test the hypotheses. A mediation-moderation research framework is employed.

The results show that intellectual capital has a positive effect on organizational performance. Further results also demonstrate that open innovation mediates the intellectual capital–organizational performance relationship and organizational inertia moderates the intellectual capital–organizational performance relationship. Theoretically, the findings contribute to the resource-based view (RBV) and knowledge-based view (KBV) by providing empirical evidence of the importance of distinctive internal resources in achieving superior organizational performance. Practically, the findings provide strategic information for managers that they should properly manage intellectual capital, open innovation and organizational inertia because of their effects on organizational performance.

First, this study addresses the previous research gaps by confirming that intellectual capital has a positive effect on organizational performance in the research setting of an emerging market. Second, by using a mediation research framework, this study shows that open innovation mediates the relationship between intellectual capital and organizational performance. Third, by using a moderating research framework, this study also reveals that organizational inertia weakens the relationship between intellectual capital and organizational performance. Those associations are rarely researched.

The adoption of mobile payment remains low in certain regions, highlighting the need to identify the factors that enable and inhibit its adoption. This study aims to address this gap by investigating the role of information security, loss aversion and the moderating influence of the herd effect on Inertia and behavioral intentions in the adoption of mobile payment systems.

A structural equation model was developed and tested with 332 valid questionnaires to examine the proposed hypotheses.

The empirical results reveal that information security plays a significant role as an enabler, while loss aversion acts as an inhibitor of mobile payment adoption. Furthermore, the study uncovers the moderating influence of the herd effect on the relationship between Inertia and behavioral intentions.

This study was conducted in a specific region and may not be generalizable to other regions. Future studies could expand the sample size and scope to enhance the external validity of the findings.

This study offers practical implications for mobile payment service providers. Understanding the key enabling and inhibiting factors identified in this study can guide providers in designing and improving their services. Strengthening information security measures can help build trust among potential adopters, while offering incentives can mitigate the impact of loss aversion and encourage early adoption.

The findings of this study have social implications as they contribute to promoting the adoption of mobile payment systems. Increased adoption can enhance financial inclusion and stimulate economic development.

This study provides novel insights into the enabling and inhibiting factors of mobile payment adoption and highlights the moderating role of the herd effect. By shedding light on the influence of social norms on individual behavior in the context of mobile payment adoption, this study contributes to the existing literature and advances our understanding of this phenomenon.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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