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Resetting the clock: a feedback approach to the dynamics of organisational inertia, survival and change

Author

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  • E R Larsen

    (City University)

  • A Lomi

    (University of Bologna)

Abstract

Using system dynamics methods, we provide a feed-back interpretation of the ecological theory of organisational inertia and change, and explore the dynamic implications of the theory through computer simulation. The study offers three main analytical insights. Firstly, structural elements typically associated with the accumulation of organisational inertia need to be in place before organisations can exploit the advantages of cumulated experience. Secondly, inertia does not have the unique consequence of lowering organisational responsiveness to external stimuli, but also that of connecting pressure for change and change attempts within organisations. Thirdly, there seems to be an ideal level of organisational resistance to change, and hence of organisational inertia. Below this level organisations find change relatively easy to sustain, but are unable to stabilise change process and capitalise on their activities of exploration of new solutions. Above this level efforts aimed at improving the reproducibility of organisational structures are not compensated by a corresponding long-term increase in reliability.

Suggested Citation

  • E R Larsen & A Lomi, 1999. "Resetting the clock: a feedback approach to the dynamics of organisational inertia, survival and change," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(4), pages 406-421, April.
    • Handle: RePEc:pal:jorsoc:v:50:y:1999:i:4:d:10.1057_palgrave.jors.2600722
    DOI: 10.1057/palgrave.jors.2600722
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    Cited by:

    1. Joanne Meehan & David Bryde, 2011. "Sustainable procurement practice," Business Strategy and the Environment, Wiley Blackwell, vol. 20(2), pages 94-106, February.
    2. Marko Rillo, 2008. "Studying Strategy Process in Organizations That Are Structurally Modulating between Exploration and Exploitation: Comparison of Computational Modelling and Case Study Approach," Working Papers 177, Tallinn School of Economics and Business Administration, Tallinn University of Technology.
    3. Alessandro Lomi & Erik R. Larsen & John H. Freeman, 2005. "Things Change: Dynamic Resource Constraints and System-Dependent Selection in the Evolution of Organizational Populations," Management Science, INFORMS, vol. 51(6), pages 882-903, June.

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