Question

Incumbent firms prefer to focus on incremental innovations which reinforce their established organizational structure and power distribution and avoid radical innovation that could disrupt their existing power distribution. This is known as

Answer 1

Organizational inertia is simply known to be the ability or strength of an organization to create internal changes in the midst of an important external changes. This is known as Organizational inertia

• An organization inertia often increase or takes place step by step in the organization's actions. The organization therefore suddenly reacts based on past experiences and strongly resists against changing.

It is the ability of a mature organization to still stand on its main trajectory. This inertia is made up of two elements. They are resource rigidity and routine rigidity

Incumbent firms favor incremental innovation over radical innovation because radical innovation often obstruct or disturb the existing power distribution that takes place in the firms.

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