Algorithmic routines and dynamic inertia: how organizations avoid adapting to changes in the environment

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dc.contributor.authorOmidvar, Omid
dc.contributor.authorSafavi, Mehdi
dc.contributor.authorGlaser, Vern L.
dc.date.accessioned2022-04-26T14:43:00Z
dc.date.available2022-04-26T14:43:00Z
dc.date.embargo2024-04-17
dc.date.issued2022-04-16
dc.description.abstractOrganizations often fail to adequately respond to substantive changes in the environment, despite widespread implementation of algorithmic routines designed to enable dynamic adaptation. We develop a theory to explain this phenomenon based on an inductive, historical case study of the credit rating routine of Moody’s, an organization that failed to adapt to substantial changes in its environment leading up to the 2008 financial crisis. Our analysis of changes to the firm’s algorithmic credit rating routine reveals mechanisms whereby organizations dynamically produce inertia by taking actions that fail to produce significant change. Dynamic inertia occurs through bounded retheorization of the algorithmic model, sedimentation of assumptions about inputs to the algorithmic model, simulation of the unknown future, and specialized compartmentalization. We enable a better understanding of organizational inertia as a sociomaterial phenomenon by theorizing how—despite using algorithmic routines to improve organizational agility—organizations dynamically produce inertia, with potentially serious adverse consequences.en_UK
dc.identifier.citationOmidvar O, Safavi M, Glaser VL. (2022) Algorithmic routines and dynamic inertia: How organizations avoid adapting to changes in the environment. Journal of Management Studies, Volume 60, Issue 2, March 2023, pp. 313-345en_UK
dc.identifier.issn0022-2380
dc.identifier.urihttps://doi.org/10.1111/joms.12819
dc.identifier.urihttp://dspace.lib.cranfield.ac.uk/handle/1826/17806
dc.language.isoenen_UK
dc.publisherWileyen_UK
dc.rightsAttribution-NoDerivatives 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nd/4.0/*
dc.subjectOrganizational Inertiaen_UK
dc.subjectRoutinesen_UK
dc.subjectAlgorithmsen_UK
dc.subjectArtifactsen_UK
dc.subjectFinancial Crisisen_UK
dc.subjectSociomaterialityen_UK
dc.subjectPerformativityen_UK
dc.titleAlgorithmic routines and dynamic inertia: how organizations avoid adapting to changes in the environmenten_UK
dc.typeArticleen_UK

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