Managing Organizational Inertia: Indonesian Family Business Perspective

Abstract

The ability to transform on a regular basis is critical in the effort to adapt to external challenges; however, changes to an organization’s fundamental characteristics may increase the likelihood of failure. Because of this, organizational restructuring efforts appear to engender cynicism, which appears to be one of the most significant obstacles facing contemporary businesses, particularly in this area. Organizational inertia is the term used to describe this aversion to change, as well as the desire to maintain the current status quo. A new organizational culture capable of combating the incidence of organizational stagnation is required by massive social, economic, and technological difficulties, and firms that employ the concept of empowering leadership will be able to meet these challenges. For the purposes of this study, a framework for discussing the phenomena of organizational cynicism was developed and implemented.

Agile Leadership and Digital Transformation in Savings Cooperative Limited: Impact on Sustainable Performance Amidst COVID-19

“…These findings concur with the study by Hongdiyanto et al [72], which similarly indicates a non-statistically significant negative relationship between organizational inertia and financial performance. Furthermore, Teofilus et al [73] established a negative correlation between organizational inertia and sustainable performance concerning profits, intra-organizational member enhancement, and business succession, albeit without statistical significance for non-financial performance. However, the effect of organizational inertia on intraorganizational member enhancement remains an under-researched area, presenting an intriguing gap in the current study that invites further investigation.…”

“…It affects profitability until the organization does not have sufficient resources to construct non-financial performance effectively. Organizational inertia has a negative relationship with financial and non-financial performance in supporting members within the organization [72,73]. For non-financial performance on members' support (customer and shareholder), community enhancement, and cooperation with competitors, the researcher views that it is essential because it is the nature of the sample group to identify organizational sustainability, although no research result supports the case.…”

Corporate entrepreneurial orientation and absorptive capacity as determinant of firm performance

“…In a competitive business environment, the existence and expansion of a company depend on its performance. High-performing companies are likely to enjoy growth, foster innovation, and quickly adjust to changing market conditions (Sabar et al, 2022;Teofilus et al, 2022).…”