The tendency of firms to be slow to respond to changes in the industry environment due to their large size,established routines,or prior strategic commitments to existing suppliers and customers is known as:
A) organizational passivity.
B) organizational lethargy.
C) incumbent inertia.
D) incumbent apathy.

Question

Quizplus · Accepted Answer

The term "incumbent inertia" specifically refers to the tendency of established firms to be resistant to change and slow to respond to shifts in the industry environment. The other answer choices - organizational passivity, organizational lethargy, and incumbent apathy - do not capture this concept as precisely.

The Tendency of Firms to Be Slow to Respond to Changes