Unfolding the Types of Organizational Inertia in Information Systems Adoption

Rinta-Kahila, Tapani; Penttinen, Esko; Nevalainen, Anssi

doi:10.1109/hicss.2016.486

Cited by 6 publications

(9 citation statements)

References 22 publications

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“…Halabi et al , 2010; Berry et al , 2006). A lack of funding is also a major barrier to technology adoption, thus supporting the idea that resource rigidity causes inertia in smaller organisations (Rinta-Kahila et al , 2016). Several respondents also mentioned the lack of time as a significant barrier to MA use, which is an important notion for the future when considering small businesses’ MA needs.…”

Section: Discussionmentioning

confidence: 82%

“…companies’ limited financial or technological resources resulting in an inability to invest in technology) or routine rigidity, capturing behavioural patterns that constrain the ability for change. Some of these companies simply become content with their incomplete systems because of a lack of time to improve them (Rinta-Kahila et al , 2016).…”

Section: Management Accounting In Small and Medium-sized Enterprisesmentioning

confidence: 99%

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Management accounting adoption in small businesses: interfaces with challenges and performance

Ylä-Kujala,

Kouhia-Kuusisto,

Ikäheimonen

et al. 2023

JAOC

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Purpose While companies worldwide are largely comprised of small and medium-sized enterprises (SMEs), a significant amount of management accounting (MA) research focuses on larger organisations, thus leaving MA practice in SMEs relatively under-researched. This paper aims to examine MA adoption (MAA) and its interfaces with MA challenges and business performance from a small business perspective. Design/methodology/approach A sample of 502 small businesses is investigated with an embedded mixed methods research design comprised of qualitative content analysis, factor analysis and analysis of variance. Findings Up to 78% of small businesses are facing MA challenges that stem from organisation, systems, personnel and/or resources. Based on the present findings, MA challenges do motivate small businesses to at least consider investing in MAA as small businesses facing challenges are more likely to acquire systems and services than those reporting no issues at all. Hence, small business managers seem to not only recognise where their challenges lie, but also seek ways to improve the situation through MAA. The analysis also reveals that companies with the highest MA know-how have the best average solvency, suggesting that small businesses indeed benefit from MAA. Interestingly, the performance at medium levels of know-how declines while investments increase, revealing a “decreasing solvency phenomenon”. Potential explanations are, e.g. the MA not fitting the company’s exact needs, or information usability and use being limited by poor MA understanding. Originality/value The originality of the research lies in exploring the interfaces between MA challenges, MAA and small business performance using distinctive embedded mixed methods research design.

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Section: Discussionmentioning

confidence: 82%

Section: Management Accounting In Small and Medium-sized Enterprisesmentioning

confidence: 99%

Management accounting adoption in small businesses: interfaces with challenges and performance

Ylä-Kujala,

Kouhia-Kuusisto,

Ikäheimonen

et al. 2023

JAOC

View full text Add to dashboard Cite

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“…Business firms with a tendency to be risk-averse and orientate only on short term performance metrics are obviously do not have orientation on long term performance achievement (Karimi and Walter, 2016). By developing corporate entrepreneurship, business firms can overcome their inertia regarding resources availability and routine rigidity that make it difficult for them to make changes and gain new sources of competitive advantage (Rinta-Kahila et al, 2016).…”

Section: Discussionmentioning

confidence: 99%

“…Covid-19 Pandemic variable was measured based on the impacts of Covid-19 Pandemic on organizational activities as well as individual perceptions about the effects of Covid-19 Pandemic on firm's performance and on the economy as a whole (Zou et al, 2020). Organizational inertia variable was measured using constructs developed by (Rinta-Kahila et al, 2016) from a number of references such as cognitive inertia, behavioral inertia, affective inertia, socio-cognitive inertia, economic inertia, and political inertia. As such, organizational inertia can be observed not only from the organizational level, but also from the individual of decision-makers level.…”

Section: Methodsmentioning

confidence: 99%

“…Oftentimes, firms cannot cope with the complexity of their business environmental changes as a result of their non-holistic linear thinking that leaned toward formal strategic planning (Carvalho et al, 2018). In considering the implementation of an innovation, organizational inertia will lead to a decision whether to adopt or to abort that innovation (Rinta-Kahila et al, 2016). The development of a business model innovation frequently creates a dilemmatic situation whether to proceed with the new innovation or sustain the existing business model (Latifi et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

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The Resiliency of Business Model Innovation of Indonesian Newspapers During Covid-19 Pandemic

Widjaja

Sammy

2022

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Newspaper business firms in Indonesia are facing difficult times both in keeping up with the advancement of digital technology and in dealing with Covid-19 Pandemic. This study attempts to examine the effects of Covid-19 Pandemic, corporate entrepreneurship, and organizational inertia on the business model innovation and business model performance of Indonesian newspaper business firms. This study employs a quantitative method using structural equation modelling (SEM). Data were collected from surveys on 50 newspapers’ leaders in DKI Jakarta, West Java, Central Java, and East Java. This study showed that there were direct consequences of both Covid-19 Pandemic, corporate entrepreneurship, and organizational inertia on business model innovation. Covid-19 Pandemic was also found affecting corporate entrepreneurship. Business model performance as measured by short term performance was not affected by business model innovation. Business model innovation is needed to improve long-term company performance.

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Building dynamic capabilities by leveraging big data analytics: The role of organizational inertia

Mikalef

Wetering

Krogstie

2021

Information & Management

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Unfolding the Types of Organizational Inertia in Information Systems Adoption

Cited by 6 publications

References 22 publications

Management accounting adoption in small businesses: interfaces with challenges and performance

Management accounting adoption in small businesses: interfaces with challenges and performance

The Resiliency of Business Model Innovation of Indonesian Newspapers During Covid-19 Pandemic

Building dynamic capabilities by leveraging big data analytics: The role of organizational inertia

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