Organizational inertia and adaptation in a declining market

Organizations require cooperation from stakeholders with different interests. Stakeholders' interests often diverge, however, when markets shift from growth to decline, and firms must disinvest. Divergent interests underlie organizational inertia, and hinder adaptation to market decline. How, then, do organizations overcome this source of inertia? This study analyzes the intra-firm resource allocation process to specify sources of inertia and how firms adapt--or fail to adapt--to declining marke...