Shackled to the Status Quo: The Inhibiting Effects of Incumbent System Habit, Switching Costs, and Inertia on New System Acceptance1

Given that adoption of a new system often implies fully or partly replacing an incumbent system, resistance is often manifested as failure of a user to switch from an incumbent technology to a newly introduced one. Thus, a potential source of resistance to adopting a new system lies in the use of an incumbent system. Using the status quo bias and habit literatures as theoretical lenses, the study explains how use of an incumbent system negatively impacts new system perceptions and usage intentions. We argue that habitual use of an incumbent system, rationalization due to perceived transition costs, and psychological commitment due to perceived sunk costs all encourage development of inertia. Inertia in turn…