Momentum or Deceleration: The Effect of Previous Change

Abstract

ABSTRACT A conventional consensus on organizational change is the momentum view, which claims that prior changes of a given kind increase the probability of a subsequent change of the same kind. This consensus has been recently challenged by the deceleration view, which argues that prior changes decrease the probability of a subsequent change. By making a distinction between experienced changes and internalized changes, this study postulates that the two views complement and coexist with each other. A change of a given kind is less likely to occur with more experienced changes of the same kind, while it is more likely to occur with more internalized changes of the same kind. This integrated view is supported in a sample of 477 U.S. local governments making decisions about whether to outsource public services during 1982–2007. This study also looks into how relatedness to internalized changes affected the occurrence of a subsequent change of the same kind. The impact of operational relatedness was positive at an early time and increasingly negative in the long run. The impact of skill relatedness, however, was positive and steadily increased as time went on. MAD statement An important debate on organizational change is how prior changes of a given kind affect the probability of a subsequent change of the same kind. Whereas the momentum view claims that prior changes breed a subsequent change, the deceleration view contends that prior changes prevent a subsequent change. By distinguishing between experienced and internalized changes, this study argues and demonstrates, with a sample of U.S. local governments, that the two views complement and coexist with each other. A change is less likely to occur with more experienced changes, while it is more likely to occur with more internalized changes.