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Structural Inertia And Organizational Change Pdf

structural inertia and organizational change pdf

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This study provides an empirical test of Hannan and Freeman's theory of structural inertia. We examined the changes organizations undertook in response to a major environmental change. In addition, we examined the effects of the organizational changes on organizational survival. Contrary to inertia theory predictions, discontinuous environmental change was not associated with an increased probability of organizational change.

S.7 Hannan, M.T. _1984_. Structural Inertia and Organizational Change. Pág. 149-164

Author s : Michael T. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. Theory and research on organization-environment relations from a population ecology perspective have been based on the assumption that inertial pressures on structure are strong. This paper attempts to clarify the meaning of structural inertia and to derive propositions about structural inertia from an explicit evolutionary model.

Influence Costs, Structural Inertia, and Organizational Change

Structurally inert firms suffer elevated failure risks in the face of environmental change because inertia makes it difficult to keep pace with the speed of such change. Renewing recent debates on inertia and on structure, in this paper we examine the specifics of the make-up of structural inertia in the context of failure hazards—the measurable survival risks associated with failure. Developing a classification of structural inertia, we test a sample of firms listed on the Taiwanese Security Exchange across 52 industries to develop a convention on organizational structure, ratifying that structural inertia differs by type in incorporating failure hazards. Findings differentiate between and elaborate the validating environmental and resource conditions for these different categories, detailing the extent to which failure hazards are related to the specifics of each type. This variation is helpful in explaining better why, despite conditions leading to failure, inert organizations continue to thrive over time. Discussing this logic addresses the narrow representation of structural inertia and limitations to its theoretical development over several decades.

structural inertia and organizational change pdf

Structural Inertia and Organizational Change Revisited III: The Evolution of Organizational Inertia

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S.7 Hannan, M.T. _1984_. Structural Inertia and Organizational Change. Pág. 149-164

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. DOI: This paper builds an economic model of the relationship between influence activity and resistance to change in organizations. I show that influence activity can create harmful barriers to change and that the influence costs of change are positively related to the firm's prospects. The model rationalizes the widely held view that firms often must endure a survival-threatening crisis before meaningful change can be achieved. View via Publisher.

Building on a formal theory of the structural aspects of organizational change initiated in Hannan, Polos, and Carroll a, b , 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 a, b , 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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A classification of structural inertia: Variations in structural response

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  1. Edmee D.

    03.05.2021 at 22:05
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