Unbundling the Structure of Inertia: Resource Versus Routine Rigidity

I work to unbundle the structure of inertia into two distinct categories: resource rigidity (failure to change resource investment patterns) and routine rigidity (failure to change organizational processes that use those resources). Given discontinuous change, a researcher's failure to recognize these distinctions can generate conflicting findings regarding effects of threat perception on inertia. Using field data on the response of newspaper organizations to the rise of digital media, I show that a strong perception of threat helps overcome resource rigidity but simultaneously amplifies routine rigidity. I develop an interpretive model exploring mechanisms for overcoming these divergent behaviors.