Structural Inertia and Organizational Change Revisited III: The Evolution of Organizational Inertia
AbstractBuilding on a formal theory of the structural aspects of organizational change initiated in Hannan, Polos, and Carroll (2002a, 2002b), this paper focuses on structural inertia. We define inertia as a persistent organizational resistance to changing architectural features. We examine the evolutionary consequences of architectural inertia. The main theorem holds that selection favors architectural inertia in the sense that the median level of inertia in cohort of organizations presumably increases over time. A second theorem holds that the selection intensity favoring architectural inertia is greater when foresight about the consequences of changes is more limited. According to the prior theory of Hannan, Polos, and Carroll (2002a, 2002b), foresight is limited by complexity and opacity. Thus it follows that the selection intensity favoring architectural inertia is stronger in populations composed of complex and opaque organizations that in those composed of simple and transparent ones.
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Bibliographic InfoPaper provided by Stanford University, Graduate School of Business in its series Research Papers with number 1734.
Date of creation: Apr 2002
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Postal: Stanford University, Stanford, CA 94305-5015
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- Criscuolo,Paola & Narula,Rajneesh, 2005.
"Using multi-hub structures for international R&D: Organizational inertia and the challenges of implementation,"
025, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Paola Criscuolo & Rajneesh Narula, 2005. "Using Multi-hub Structures for international R&D Organizational Inertia and the Challenges of Implementation," DRUID Working Papers 05-13, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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