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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 literature of organizational change hints that adaptability and inertia not only counterbalance but also reinforce each other, and the inertia-adaptability balance over time is nonlinear. The author aims to address this view more clearly by presenting a multi-stage conceptual model that delineates how adaptability and inertia take turns to override each other. In addition, data collected from over 400 nonprofit organizations within the USA were used to test this model.

This study uses polynomial regression to examine the multi-stage conceptual model. More precisely, it tests how organizational age influences an organization's innovativeness, managerial risk aversion, and red tape.

The findings support the multi-stage conceptual model. The results imply that organizational ecology and rational adaptation are mutually compatible perspectives in explaining organizational age dynamics.

This study introduces a multi-stage model that more clearly examines how adaptability and inertia counterbalance and reinforce over time. More importantly, the author empirically examines the nonlinear organizational age dynamics using quantitative data.

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.

Supply chain resilience and knowledge management (KM) processes have received increasing attention from researchers and practitioners. Nevertheless, previous studies often treat the two streams of literature independently. Drawing on the knowledge-based theory, this study aims to reconcile these two different streams of literature and examine how and when KM processes influence supply chain resilience.

This research develops a conceptual model to test a sample of data from 203 Chinese manufacturing firms using a structural equation modeling method. Specifically, the current study empirically examines how KM processes affect different forms of supply chain resilience (supply chain readiness, responsiveness and recovery) and examines the moderating effect of blockchain technology adaptation and organizational inertia on the relationship between KM processes and supply chain resilience.

The findings show that KM processes positively affect three dimensions of supply chain resilience, i.e., supply chain readiness, responsiveness and recovery. Besides, the study reveals that blockchain technology adoption positively moderates the relationships between KM processes and supply chain resilience, whereas organizational inertia negatively moderates these above relationships.

This research linked the two research areas of supply chain resilience and KM processes, further bridging the gap in the research exploration of KM in the supply chain field. Next, this study contributes to supply chain resilience research by investigating how KM systems positively impact supply chain readiness, responsiveness and recovery. In addition, this study found a moderating effect of blockchain technology adaption and organizational inertia on the relationship between KM processes and supply chain resilience. These findings provide a reference for Chinese manufacturing firms to strengthen supply chain resilience, achieve secure supply chain operations and gain a competitive advantage in the supply chain. This studys’findings advance the understanding of supply chain resilience and provide practical implications for supply chain managers.

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.

The adaptation perspective dominates the issue of organizational change and assumes that organizational inertia increases organizational mortality. This assumption is inadequate to analyze organizational change in risky activities. The purpose of this paper is to underline the relevance of organizational inertia when organizations face risky environments.

A conceptual framework was built that combines the adaptation and selection perspectives from the evolutionary approach and the high‐reliability organizations literature and apply it to space activities.

First, it was found that to prevent catastrophic failures, space organizations reproduce routines validated in previous successful programs, which leads to situations of organizational inertia; and second, the opposing perspectives of selection and adaptation become complementary when the author focus on the level of risk faced by organizations.

This paper focuses on space organizations and not more general types of organizations. However, the findings could be generalized to organizations manufacturing complex products and systems.

The originality of the paper is based on the new empirical and theoretical frameworks provided to analyze organizational inertia. Organizational inertia may be a satisfying response to environments favoring organizations with high levels of reliability. This new way of viewing inertia would be of value to scholars studying organizations in which errors can have catastrophic consequences.

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.

Knowledge creation (KC) is an important issue in a knowledge society. Organizational change is required to facilitate KC which embraces knowledge access and selection, knowledge diffusion, knowledge application, and knowledge storage. In this paper, three momenta of organizational change are reviewed and integrated. Knowledge access and selection driven by institutional regulation takes place in the beginning phase, knowledge diffusion and knowledge application driven by rationality in the subsequent phase, and knowledge storage driven by structural inertia in the last phase. Once the right momentum influences organizational change in the wrong phase, KC can rarely be accomplished.

Institutional theory assumes practice adoption and subsequent decoupling. However, there is a range of alternative organizational theories that challenge this view and offer instead their reinterpretation, extension and modification of institutional predictions with regard to the adoption and possible range of various responses and processes that follow the decision to adopt. This paper aims to review this spectrum of theories and suggest how they clarify, supplement, correct, restrict and/or abandon some institutional explanations and predictions.

Extensions and alternatives to institutional theory are mainly motivated by the need to have a theory of practice adoption and variation, and a plethora of alternative practice adoption theories currently exists in the literature. The authors review these theories and compare them against institutional theory and against each other.

The analysis revealed shortcomings and advantages of alternative theories compared to institutional theory and against each other. It is suggested which theory is most useful in each domain of application. The authors review and compare institutional theory, Scandinavian institutionalism, management fashion theory, virus theory and institutional inertia theory and analyze how and whether they are able to reproduce the success of institutional theory and successfully address and resolve its shortcomings and gaps. The authors conclude by discussing whether regular emergences of new theories that account for the idea-handling stage of diffusion signals institutional theory’s limit of validity in this domain.

The problem of idea emergence/diffusion/disappearance and adoption/variation/use are fundamentally different, but both of them motivated researchers to go beyond institutional theory. Despite being the dominant theory of organizations internally consistent and explaining a wide range of empirical observations, it is evident that institutional theory is not a complete theory. This paper contributes to this problem by exploring and comparing existing candidates for practice variation theory.

At its core, this volume tackles the contradictory views of the performance-enhancing effects of organizational flexibility and inertia head on, and in doing so, contributes to the development of theory and empirical evidence at the interface of strategic management and organizational ecology. In addition to the inertia–flexibility nexus, the volume explores a wide range of additional connections between these two perspectives across nine topical areas that both ecological and strategic management researchers have examined: (1) Entrepreneurship, (2) Top Management Teams, (3) Organizational Change, (4) Organizational Learning, (5) Technology Strategy, (6) Competitive Strategy, (7) Cooperative Strategy, (8) Scale and Scope, and (9) Industry Evolution.