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Organisational inertia in Japanese institutions

Asano, Akihito; Eto, Takaharu


A bureau of hierarchical authority is responsible for overseeing the banking industry. We show that career concerns of officials in the authority generate organisational inertia in the sense that, regardless of changes in the environment, a new junior official prefers to stick to the decision made by the former junior official, which may be suboptimal. This kind of inertia is acute in typical Japanese organisations, which have lifetime employment with internal promotion. We provide anecdotal...[Show more]

CollectionsANU Research Publications
Date published: 2007
Type: Journal article
Source: Journal of Asian Economics
DOI: 10.1016/j.asieco.2007.07.008


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