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Industrial and Corporate Change, Volume 13, Number 1, pp. 213-242
Industrial and Corporate Change 13/1 © ICC Association 2004; all rights reserved.

The evolution of inertia

Michael T. Hannan, László Pólos and Glenn R. Carroll

Correspondence: Michael T. Hannan, Graduate School of Business, Stanford University, Stanford, CA 94305-5015, USA. Email: hannan{at}stanford.edu

Abstract

This article examines some evolutionary consequences of architectural inertia in organizations. The main theorem holds that selection favors architectural inertia in the sense that the median level of inertia in a closed population of organizations increases over time. The other key theorems hold that the selection intensity favoring architectural inertia increases with the levels of intricacy and structural opacity and decreases with cultural asperity.


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