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The effect of core change on performance : inertia and regression toward the mean

By: GREVE, Henrich R.
Material type: materialTypeLabelArticlePublisher: Ithaca : Johnson Graduate School of Management, September 1999Administrative Science Quarterly 44, 3, p. 590-614Abstract: This paper examines the consequences of changes in the organization`s market position o its market share, testing arguments of inertia nd refression toward the mean and taking into account recent methodological critiques os studies on the consequences of organizations change. A study of format change in the U.S. radio indystry, 1984-1992, shows that changes case performance to decline, as inertia theory predicts, byt this is moderated by organizational size and performance before the change, so change cna be benficial for low-performing organizations byt may be harmful for large and successful organizations
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This paper examines the consequences of changes in the organization`s market position o its market share, testing arguments of inertia nd refression toward the mean and taking into account recent methodological critiques os studies on the consequences of organizations change. A study of format change in the U.S. radio indystry, 1984-1992, shows that changes case performance to decline, as inertia theory predicts, byt this is moderated by organizational size and performance before the change, so change cna be benficial for low-performing organizations byt may be harmful for large and successful organizations

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