Citation
Structural Inertia and Organizational Change
TL;DR
Organizations develop structural inertia over time
Hannan and Freeman's influential paper argued that organizations develop structural inertia that resists change, even when the environment demands adaptation. They showed that older, larger organizations are particularly prone to rigidity.
This work explains the 'rigid fractal' pathology - established organizational hierarchies become entrenched, with each layer developing vested interests that resist restructuring. The biological analog is developmental constraints that lock body plans early in evolution.
Key Findings from Hannan & Freeman (1984)
- Organizations develop structural inertia over time
- Older and larger organizations are more resistant to change
- Reliability and accountability demands reinforce structural rigidity