CORE RIGIDITIES AND INCUMBENT INERTIA: A STUDY ON THEIR DYNAMICS AND RELATION TO BUSINESS MODEL CHANGE

Sammanfattning: This article adds to the understanding of incumbent inertia through the conceptual separation between voluntary inertia and implied inertia, and the analyzed dynamics of each in relation to core rigidities. Consequently, core rigidities are conceptually shown to be separate from incumbent inertia, concepts which are often confused in extant literature. Furthermore, the dynamics between core rigidities and the two types of incumbent inertia have been shown to have a direct influence on the extent of reactive approaches towards change. A model is presented based on a time axis, with voluntary inertia leading to core rigidities, and core rigidities creating constraints under which the firm must operate ­ phenomenon referred to as implied inertia. Additionally, we relate company efficiency, culture, and structure to these dynamics.