Evolutionary paths of organizational inertia based on system dynamics

This paper aims to build the model based on system dynamics (SD) theory, test its internal consistency, and explore the brief dynamic implications of a theory that relates to evolutionary paths of organizational inertia. This is the initial research of adopting system dynamics model and method to demonstrate the organizational inertia of biomedicine industry in the perspective of dynamic evolutionary paths. It reveals that the motivation of organizational inertia from the structural inertia is that empirical practice demands the relevant modeling foundations with the establishment of the causes trees, the uses trees, the causal feedback constructs and the corresponding equations. The dynamic evolutionary paths of organizational inertia are indicated by the causal feedback loop to illustrate that the domain of inertia is enlarged from structural inertia to organizational inertia which is effected by some main factors with delay to try to explode its positive effects on organizational innovation and meanwhile to restrain and divert the negative ones.