Volume 29, Issue 5, 2020
DOI: 10.24205/03276716.2020.1011
The Study of Organizational Inertia, Business Model Innovation and Organizational Performance in Taiwan Financial Institutions: Organizational Learning Perspective
Abstract
Due to the characteristic of constraints, organizations tend to remain stable and follow the existing routines. It results in their insensitivity to various threats and opportunities caused by external environment. According to empirical result, organizational inertia negatively and significantly influences organizational learning. Numerous studies argued that organizational learning significantly influences innovation and organizational learning significantly influences organizational performance. Empirical outcome shows that organizational learning positively and significantly influences innovation of business model and organizational performance. In an environment of rapid finetech development, organizational learning leads to originality and innovation, which result in synergy to enhance organizational competitiveness and organizational performance. If organizations can properly manage knowledge, upgrade quality, lower cost and immediately respond to customers’ needs, it is conducive to the outcome of organizational learning and lead to better organizational performance. Innovation of business model allows enterprises and related financial institutions to construct competitive advantage. Innovation of business model causes new operational model, enhances core competence of enterprises, satisfy customers’ needs, improve quality or attribute of current products or lower production cost of products, according to empirical result of this study, innovation of business model positively and significantly influences organizational performance.
Keywords
Financial Institutions, Organizational Inertia, Innovation of Business Model, Organizational Performance, Finetech