Research On The Relationship Between Organizational Inertia And Enterprise Performance: The Moderating Effect Of Environmental Dynamism

With the development of economic globalization, increasingly complex market environment, the market competition becomes increasingly fierce, which is a severe challenge to the development of enterprises. In this context, organizational inertia has received increasing academic attention. According to resource-based view, with the organizational inertia enhances, companies will gradually accumulate a large amount of valuable and difficult imitative routines, management experience and skills to enable enterprises to gain competitive advantage. However, some studies have considered organizational inertia will hinder organization innovation and change, reducing the flexibility to respond to external environment change. So far, researches on organizations inertia effecting enterprise performance have no consistent conclusions. Therefore, organizational inertia influence on enterprise performance remains to be further explored.To further investigate the mechanism of the organization inertia impact on firm performance, based on the research literature, this paper establish an empirical research method to study the relationship between organizational inertia and enterprise performance. According to previous studies, the organizational inertia divided into three dimensions: structural inertia, knowledge inertia and cultural inertia, while enterprise performance divided into two dimensions: financial performance and innovation performance, and environmental dynamism as the moderator, this paper constructed a theoretical model and proposed hypotheses.This paper adopts questionnaire survey, data statistic and other research models to verify the theoretical model and proposed hypotheses. Referencing existing questionnaires, we carried out questionnaires to enterprises on the pearl river delta region. Then use statistical software to analyze sample data, including reliability, validity analysis, descriptive statistics, correlation analysis and regression analysis. The results show that:( 1) structural inertia and innovation performance are positively correlated, cultural inertia and financial performance, innovation performance are positively correlated.( 2) the dynamic environment in the relationship between knowledge inertia and corporate performance has played a negative role.This paper studied organization inertia effecting on enterprise performance, and the moderate role of environmental dynamism. This study enriches the researches of organization inertia, and provides theoretical enlightenment and useful guidance to enterprise practice.