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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.

Institutional theory had been developed for the purpose of explaining widespread diffusion, mimetic adoption and institutionalization of organizational practices. However, further extensions of institutional theory are needed to explain a range of different institutional trajectories and organizational responses since institutionalized standards constitute a minority of all diffusing practices. The study presents a theoretical framework which offers guidelines for explaining and predicting various adoption, variation and post-adoption scenarios.

The paper is primarily conceptual in nature, and the arguments are developed based on previous institutional theory and organizational change literature.

The notion of institutional inertia is proposed in order to provide a more detailed explanation of when and why organizations ignore, adopt, modify, maintain and abandon practices and the way intra-organizational institutional pressures shape, direct and constrain these processes. It is specified whether institutional inertia will be temporarily eclipsed or whether it will actively manifest itself during adoption, adaptation and maintaining attempts. The study distinguishes between four institutional profiles of organizational practices – institutionalized, institutionally friendly, neutral and contested practices – which can vary along three dimensions: accuracy, extensiveness and meaning. The variation and post-adoption outcomes for each of them can be completely characterized and predicted by only three parameters: the rate of institutional inertia, institutional profile of these practices and whether they are interpretatively flexible. In turn, an extent of intraorganizational institutional resistance to new practices is determined by their institutional profile and flexibility.

It is expected that proposed theoretical explanations in this paper can offer insights into these empirical puzzles and supply a broader view of organizational and management changes. The study’s theoretical propositions help to understand what happens to organizational practices after they are handled by organizations, thus moving beyond the adoption/rejection dichotomy.

The paper explores and clarifies the nature of institutional inertia and offers an explanation of its manifestation in organizations over time and how it shapes organizational practices in the short and long run. It challenges a popular assumption in organizational literature that fast and revolutionary transition is a prerequisite for successful change. More broadly, the typology offered in this paper helps to explain whether and how organizations can successfully handle and complete their change and how far they can depart from institutional norms.

The purpose of this paper is to provide a process model on how mindfully performed organisational routines can simultaneously enable organisational stability and organisational change.

Via conceptual analysis, the authors develop several propositions and a process model integrating the theory of mindfulness and performative aspects of organisational routines with organisational stability and change. To do so, the authors review the literature on organisational routines, mindfulness, stability, inertia and change.

First, the authors demonstrate that, based on levels of mindfulness employed, performative aspects of organisational routines can be categorised as mindless, mindful and collectively mindful (meta-routines). Second, in the process model, the authors position the mindless performance of routines as enabling organisational stability, mediated through inertial pressure and disabling change, mediated through constrained change capacities. Finally, the authors state that engaging routines with mindfulness at an individual (mindful routines) or collective (meta-routines) level reduces inertia and facilitates change. Such simultaneous engagement leads to either sustaining stability when required or implementing continuous organisational change.

The framework uses continuous, versus episodic, change; future research can consider the model’s workability with episodic change. Future research can also seek to empirically validate the model. The authors hope that this model informs research in organisational change and provides guidance on addressing organisational inertia.

To the best of the authors’ knowledge, this study is the first to categorise the performative aspects of organisational routine based on the extent of mindfulness employed and propose that mindfulness-based practice of routines stimulates either inertia-induced or inertia-free stability and continuous change.

Inaction inertia is the phenomenon in which people are less likely to accept an opportunity after having previously missed a relatively superior one. This research explores how framing quantity promotions as either a freebie (e.g. “buy 1, get 1 free”) or a price bundle (e.g. “buy 2, get 50% off”) influences inaction inertia. Relevant mediators are also identified.

Three experiments, two using imaginary scenarios and one using an incentive-compatible design, test the hypotheses.

Consumers who miss a freebie quantity promotion express higher inaction inertia than consumers who miss a price bundle promotion. The cause of this difference is higher perceived regret and greater devaluation that result from missing a superior freebie (vs price bundle) promotion.

Future research should examine how factors influencing perceived regret and devaluation moderate the quantity promotional frame effect on inaction inertia.

The findings provide insights into which quantity promotional frames practitioners should use to reduce inaction inertia.

This study's comprehensive theoretical framework predicts quantity promotional frame effects on inaction inertia and identifies relevant internal mechanisms. The findings are evidence that inaction inertia is caused by both perceived regret and devaluation in certain contexts. Furthermore, this study identifies the conditions in which a price bundle promotional frame is more beneficial than a freebie promotional frame.

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.

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.

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.

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.

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.

Qualitative data is collected from a single case study.

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.

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 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.