A Study On The Relationship Among Organizational Inertia, Organizational Innovation And Organizational Performance Of Manufacturing Industry

Amidst the expansion of economic globalization and development of marketinformation technology, the enterprises have to face up with increasing pressure ofcompetition and extinction rate. Manufacturing industry, as one of the pillars of nationaleconomy under the present political, economic, cultural and social circumstances, hasbeen challenged by the same issue of existence. In particular, in consequence of theeconomic crisis, the inherent problems of manufacturing industry have been graduallyexposed, such as more cost (labor cost and material cost), hard financing, surplusproducts and low quality. The uncertain external economic trend forces the enterprises tomeasure the internal management of organization to seek solutions. Among the rest, theorganizational inertia, one of the keys to management, plays more and more remarkableinfluence on organization performance.The present paper addresses the relationship study among organizational inertia,organizational innovation and organizational performance of manufacturing industry, andthe function of organization innovation in the relationship between organizational inertiaand organizational performance. It focuses on internal organizational performance, andseeks internal means to enhance the manufacturing enterprise market competitiveness.First, the concerned front-end studies are referred to establish the indicator systemamong the organizational inertia, innovation and performance, which is the initialquestionnaire for the measurement. Second, the questionnaire is used for preview and getssmall samples; the statistical software SPSS17.0is applied for reliability analysis andexploratory factor analysis on the132small samples as collected. As a result,organizational inertia is composed by two dimensions, i.e., capacity extension and changelimit, organizational innovation by management and technology innovations,organizational performance by financial and non-financial performances. Then, themeasurement indicators are screened on the basis of exploratory factor analysis to get thefinal questionnaire. Such formal questionnaire is spread for collecting large sample data.The statistical software SPSS17.0is applied again for descriptive statistical analysis,normal distribution test and reliability analysis on the391large samples. The statisticalsoftware AMOS18is applied for confirmatory factor analysis of large samples. The resultis that the large sample data can be used for structural equation model test.Then according to the above data analysis and research, combined with the relevant literature, the structural equation models are formulated for the relationship betweenorganizational inertia and organizational performance, between organizational inertia andorganizational innovation, and among those three aspects. The statistical softwareAMOS18is applied for verifying the fitness of the model. It shows that the above threemodels are good at fitness, and the organizational inertia exerts obviously direct impactson organizational innovation and organizational performance, so does the organizationalinnovation on performance, meanwhile, the organizational innovation acts as a mediumbetween organizational inertia and organizational performance. Using SPSS17.0to doregression analysis on large sample data, it finds that it’s only the dimension of capacityextension that influences directly in organizational innovation, and that the twodimensions of organizational inertia can have obviously direct influence on organizationalperformance.Consequently, the paper analyzes and discusses the study conclusions of thestructural equation model, and provides a theoretical basis and practical direction to guidemanufacturing enterprises to strengthen internal management and improve the overallcompetitiveness.