Investigating Strategic Inertia Using OrgSwarm

This study describes a novel simulation model (OrgSwarm) of the process of strategic adaptation. Strategic adaptation is conceptualized as a process of adaptation (search), on a landscape of strategic possibilities, by a population of profit-seeking organizations. Unfortunately, the characteristics that make organizations coherent and viable such as organizational structure and shared organizational culture, also create strategic inertia, potentially limiting the ability of organizations to adapt. This study examines the impact of strategic inertia on the adaptive potential of organizations. The simulation results suggest that a degree of strategic inertia can assist rather than hamper adaptive efforts in static and slowly changing strategic environments.