Capabilities, Cognition, and Inertia: Evidence from Digital Imaging

Organizational change is difficult. Even when established firms recognize the need to change in response to shifts in their external environment, they are often unable to respond effectively. Technological change has proven particularly deadly for established firms, with numerous examples of established firm failure in the face of radical technological change. Existing explanations for failure to adapt to radically new technology have focused on the nature of a firm's capabilities. In this paper we expand upon this work by examining how managerial cognition influences the evolution of capabilities and thus contributes to organizational inertia.