GREVE, Henrich R

The effect of core change on performance : inertia and regression toward the mean - Ithaca : Johnson Graduate School of Management, September 1999

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