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Institutional Change, Absorptive Capacity, and the Organizational Zone of Inertia

Lamar University

A framework of theoretical propositions is presented as a heuristic to describe the potential linkage between institutional absorptive capacity and organizational inertia. Means through which insight inertia and action inertia might be addressed are presented. A series of propositions and associated literature are presented for illustration. The concept of a zone of inertia is incorporated to facilitate understanding of the variables involved.

Key Words: organizational learning • organizational change • institutional absorptive capacity

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