Innovation and Technology for Neutralizing Organizational Inertia: A Structural Equation Modeling (SEM) Approach

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1 Business Management Dept, Allameh Tabataba'i University, Tehran, Iran

2 Business Management Department, Allameh Tabataba'i University, Tehran, Iran.

3 Business Management Department, Allameh Tabataba'i University, Tehran, Iran.

10.22059/aie.2024.370560.1884

Abstract

In the current competitive landscape of the business world, particularly for small and medium-sized software enterprises within the information and communication technology sector, the imperative for survival lies in the ability to innovate. Business Model Innovation (BMI) emerges as a crucial driver in achieving competitiveness and superior performance under such circumstances. Nevertheless, certain organizations may encounter diverse forms of organizational inertia, hindering their capacity to effectively adapt to environmental changes and consequently impeding their ability to keep pace with the changes. In this context, organizational competencies and capabilities could potentially influence the organization's response to these challenges. This study seeks to explore the relationship between organizational inertia and BMI, taking into account the moderating effects of open innovation competencies and Information Technology (IT) ambidexterity as potential influencing factors. The statistical population targeted for this research comprises software companies within the Information and Communications Technology industry in Tehran Province, Iran. Our analysis indicates that organizational inertia exerts a significant and adverse impact on BMI, underscoring the importance of mitigating this inertia to facilitate innovation in business models. Furthermore, open innovation competencies are identified as a significant moderator in this relationship, emphasizing the need to cultivate these competencies within organizations, while the moderating role of IT ambidexterity was found to be non-significant.

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Advances in Industrial Engineering

Articles in Press, Accepted Manuscript
Available Online from 26 June 2024

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