• Journal of Information Technology Services
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• v.23 no.3
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• pp.17-37
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• 2024

This study explores the tendency of corporations and organizations to continue with their current processes despite having incentives for better Information Technology (IT) innovation or transition. In this context, the study argues that organizations may struggle with 'outsourcing inertia,' a well-known concept referring to an organization's deficient adaptability to environmental changes, particularly defined here as the organization's slow adaptation to changes in outsourcing levels. To verify this, the study analyzes how key variables identified from existing IT Outsourcing (ITO) decision-making research and recent studies on cloud computing transitions actually affect a firm's transition intentions. In the process, this study investigates the moderating effect of a firm's outsourcing inertia, utilizing the Technology-Organization-Environment (TOE) framework and the Push-Pull-Mooring (PPM) model based on migration theory to propose a research model. The study aims to contribute to finding strategic approaches necessary for facilitating IT innovation and transition by understanding the impact of outsourcing inertia on the decision-making process related to IT outsourcing. It is important to note that the majority of domestic conglomerates own IT subsidiaries, which significantly influence the process of transitioning to cloud computing. Nevertheless, research on the impact of IT subsidiaries on cloud computing transition is relatively scarce. Based on this background, this study proposes that IT subsidiaries within domestic conglomerates can act as a significant mooring factor of organizational inertia in the decision-making process for adopting cloud computing. Through this, the study seeks to provide strategic insights for overcoming organizational inertia faced by IT subsidiaries during the cloud computing transition process.

• Knowledge Management Research
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• v.18 no.4
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• pp.31-62
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• 2017

It found that employee silence negatively impacts both organizations and their employees as shown in findings from many studies and recently there has been a growing interest in it. Silence is described as intentionally withholding job-related ideas, information, concerns, and opinions. Employee silence may decrease organizational change and innovation and reduce employee learning motivation and knowledge sharing engagement as well. The purpose of this study is to examine the relationships among silence motivations, perceived silence climate, and employee silence; the relationships among employee silence, learning inertia and knowledge sharing disengagement; the mediating role of employee silence between antecedents of employee silence and consequences additionally. The results that analyzed using data from 225 employees in 42 organizations are as follows. First, the impact of silence motivation and perceived silence climate on employee silence are positively significant. Second, the influence of defensive silence motivation on the acquiescent and relational silence motivation is positively significant. Third, the influence of employee silence on learning inertia and knowledge sharing disengagement is positively significant. Forth, employee silence mediates the relationship between silence motivation and perceived silence climate and learning inertia and knowledge sharing disengagement. These results suggest that employee silence is another strong expression and message for organizations to try to establish a learning organization from the perspective of knowledge management.

• Journal of Technology Innovation
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• v.14 no.1
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• pp.1-30
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• 2006

The purpose of this paper is to analyze the organizational design and management of product development in creating new product architecture by an established firm. For the purpose, the paper put up the organizational design in the process of PDA(Personal Digital Assistant) development of Sharp and Casio which were Japanese major PDA firms in 1990s. PDA is the product born through architectural change from Electronic Organizer. Prior research on the product architecture change and organizational adaptation emphasized that an established firm is difficult to adapt to new product architecture due to the restriction of prior technology or organizational inertia. For overcoming these problems and successful development of new product architecture, organizational design and management in the process of product development becomes essential. In case of Sharp, corporate development project team had been used to overcome the restrictions from architectural knowledge accumulated through previous product. After launching first new PDA by corporate development project team, Sharp created a new division and pushed an evolution of PDA, when new PDA market start to grow up rapidly toward a major market segmentation. As a result, Sharp was able to build up stable PDA project trajectory. However, Casio was late for three years in launching of new PDA architecture because previous division charging of Electronic Organizer tried to develop first new PDA. Casio's PDA development was prohibited by engineers of previous division because new PDA architecture was inferior on user interface and display definition. That is, Casio's first PDA development was restricted by architectural knowledge of previous product.

• Proceedings of the Technology Innovation Conference
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• 2005.06a
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• pp.44-68
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• 2005

The purpose of this paper is to analyze the organizational design and management of product development in creating new product architecture by an established firm. For the purpose, the paper put up the organizational design in the process of PDA(Personal Digital Assistant) development of Sharp and Casio which were Japanese major PDA firms in 1990s. PDA is the product born through architectural change from Electronic Organizer. Prior research on the product architecture change and organizational adaptation emphasized that an established firm is difficult to adapt to new product architecture due to the restriction of prior technology or organizational inertia. For overcoming these problems and successful development of new product architecture, organizational design and management in the process of product development becomes essential. In case of Sharp, corporate development project team had been used to overcome the restrictions from architectural knowledge accumulated through previous product. After launching first new PDA by corporate development project team, Sharp created a new division and pushed an evolution of PDA, when new PDA market start to grow up rapidly toward a major market segmentation. As a result, Sharp was able to build up stable PDA project trajectory. However, Casio was late for three years in launching of new PDA architecture because previous division charging of Electronic Organizer tried to develop first new PDA. Casio's PDA development was prohibited by engineers of previous division because new PDA architecture was inferior on user interface and display definition. That is, Casio's first PDA development was restricted by architectural knowledge of previous product.

• Journal of Digital Convergence
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• v.18 no.8
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• pp.119-131
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• 2020

The purpose of this study is to examine the mediated effects of entrepreneurship and market orientation on organizational culture and management performance as the cause of the reversal phenomenon of startups defeating traditional giants. Through the research method of bootstrapping proposed by Hayes (2013), the total effect, direct effect and indirect effect analysis were conducted. As a result, there was no direct impact relationship between organizational culture and management performance, but it was confirmed that it had a positive impact on management performance by mediating both entrepreneurial behavior and market orientation in the relationship between organizational culture and management performance. This study is meaningful in that it is linked to existing theories such as entrepreneurship and market orientation and it extends the scope of competency targets required for business performance to an organizational culture. Companies need to create an innovation-oriented organizational culture for management performance and value creation, and they have to open up their culture with entrepreneurial behavior and market orientation by breaking away from the inertia of organization.

• Journal of Korea Technology Innovation Society
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• v.16 no.4
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• pp.1134-1162
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• 2013

The purpose of this paper is to provide an innovation strategy for a leading industrial company. We analyze the process of a shift in industrial leadership using the shipbuilding industry as a case study. This paper explains that the three core factors of decline are immobilization, lack of innovation for major products, and organizational inertia. This study presents that the leader of a market is not decided by strong competitiveness, but by quick reaction to major customers' needs, and that out-of-date strategies do not contribute to maintaining leadership. As a result of this study, it shows that the leading Korean industrial companies shall establish a new innovation-oriented and customer-oriented management system that is flexible enough to anticipate and respond to the changes in new competitive environments. These findings contribute to the formulation of new strategies for other manufacturing industries in Korea.

• Journal of Korea Trade
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• v.24 no.1
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• pp.82-98
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• 2020

Purpose - This study aims to overcome the limitations of existing studies, which linearly determine the precedence factors of competency in overseas subsidiaries. The research objectives are as follows. First, what kind of nonlinear effects does the level of control held by Korean headquarters over foreign subsidiaries have in terms of competency in the subsidiaries? Second, what kind of nonlinear effects do the local experiences of overseas subsidiaries have on their competency? Design/methodology - With data on Korean multinational corporations (MNCs), this paper analyzes the effects of control levels of headquarters (HQs) and host-country experiences of foreign subsidiaries regarding competency in overseas subsidiaries. In particular, this study focuses on nonlinear models, differentiating it from previous studies. In order to examine research hypotheses, this study conducted a survey of overseas subsidiaries of Korean corporations. Surveys were conducted through various methods including e-mail, online questionnaires, fax, and telephone calls. Copies of the questionnaire were distributed to a total of 2,246 overseas subsidiaries, and 409 completed responses were collected. Excluding 15 copies that were insufficiently answered, responses from a total of 394 copies were used for analysis. Findings - This study presents the following results. First, there is a U-shaped relationship between levels of HQ control and competency in foreign subsidiaries. This means that higher levels of HQ control negatively impact the competency levels of subsidiaries because strict control undermines autonomy in subsidiaries. However, if the level of HQ control exceeds a certain point, then the transfer of knowledge between HQs and subsidiaries is facilitated. Knowledge transferred from HQs can be used as prior knowledge by foreign subsidiaries to the benefit of all parties. Accordingly, knowledge transfer negates the negative effects of excessive HQ control and positively affects competency in subsidiaries. Second, there is an inverted U-shaped relationship between the local (host-country) experiences of subsidiaries and competency in foreign subsidiaries. This means that foreign subsidiaries can overcome the liabilities of foreignness and contribute to capability building by accumulating unique knowledge about their host countries. However, if local experiences accumulate excessively beyond a certain point, then the host country-specific experiences of foreign subsidiaries will offset the benefits discussed above. Excessive local experiences not only increase organizational inertia, but also create a problem of goal incongruence due to information asymmetry between HQs and subsidiaries. Therefore, excessive local experiences have negative effects on competency in foreign subsidiaries. Originality/value - This study suggests the following implications. First, unlike existing studies based mainly on linear models, this study presents important theoretical implications in its focus on nonlinear models and its analysis of the effects of HQ control and local experiences on competency in foreign subsidiaries from perspectives of organizational learning theory and agency theory. Second, in terms of practical implications, the results of this study suggest that optimally raising levels of HQ control and managing the local experiences of subsidiaries without increasing organizational inertia is important for enhancing competency in foreign subsidiaries.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.4
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• pp.117-129
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• 2023

Organizations must seek change in order to adapt to environmental changes and achieve better performance. However, despite this obvious statement, empirical analysis has been almost non-existent due to the difficulty of manipulating organizational performance or change. In this study, we overcame these limitations and analyzed the causes and effects of organizational change by assuming a professional sports team as a venture company, which is relatively easy to objectively measure and evaluate organizational change or performance. We systematically collected and preprocessed traditional and advanced metrics of National Basketball Association (NBA) statistics along with preprocessed trade data from eight years of regular seasons (2014~2015-2021~2022) to analyze our research model. Assessment of process macro model 7 derives the following empirical result. The results of the empirical analysis depict that NBA teams with low organizational performance in the previous season are more likely to make organizational changes through player trades to improve performance. Into the bargain player trades mediate the static relationship between the winning percentage in the previous season and the winning percentage in the current season. However, the indirect effect of a team's previous season's performance on player trades appears to vary depending on the current situations and context of each NBA team. Teams that made the playoffs in the previous season tend to make fewer trades than teams that did not and the previous season's performance is highly correlated with the current season's performance. On the other hand, teams that did not make the playoffs in the previous season tend to make a relatively larger amount of player trades in total, and the mediating effect of trades vanishes in this case. In other words, teams that did not make the playoffs in the previous season experience a larger change in performance due to trades than teams that made the playoffs, even if they achieved the same winning percentage. This empirical analysis of the inverse relationship between organizational change and the performance of professional sports teams has both theoretical and practical implications in the field of sports industry and management by analyzing the fundamentals of organizational change and the performance of professional sports teams.

• Korea Trade Review
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• v.42 no.3
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• pp.49-74
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• 2017

Drawing on the organizational learning theory, we argue that international patenting allows firms to assess the potential value of their innovation in host countries and find out latent local competitors. The information obtained from international patenting enables firms to make refined innovations that facilitate export performance. However, structural inertia and old knowledge can impede learning from international patenting. Thus, we expect larger firms and older firms to display greater reluctance to use the knowledge obtained from international patenting. Our empirical analysis of Korean pharmaceutical companies from 1998 to 2010 shows that international patent application increases export intensity but firm size and age weaken the positive effect of international patenting on export performance.

• Journal of the Korea Convergence Society
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• v.9 no.12
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• pp.429-440
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• 2018

The purpose of the study is to explore the experience of bullying in the workplace of nurses. The study period was April 1 2013 to July 5 2013. The subjects were 14 nurses who had experienced bullying at their workplace. Data were analyzed using Strauss and Corbin's grounded theory methodology. With data analysis, 139 concepts, 35 subcategories, and 13 categories were generated. "Disregard of presence by negatively learned inertia" was the central phenomenon for workplace bullying of nurses, and the core category was 'struggle to regain oneself'. This study will contribute to a change in individual and organizational awareness of bullying in the workplace by presenting a dynamic process of nurses experiencing bullying. Research is required on identifying workplace bullying status, monitoring methods and program development to reduce workplace bullying of nurses.