Exploring the Mediating Effect of Organizational Inertia on the Relationship of Turnaround and Organizational Performance Framework: A Proposed Framework


  • Muhammad Suhaimi Mohd Yusof
  • Abd Rahim Romle


Organizational inertia is a state of organization in idle or stagnant organization phenomenon which reflects on products of organization, method of production and policies whilst it is also as an element of organizational behavior and the storage of ability that caused the organization resists to change. It is a kind of state an organization has the tendency to continue on its current path and restrain from having some changes by insight, action and psychologically based inertia also significant change is hard to bring into organization if there is too much that needed to overcome. This study examines the relationship between turnaround and organization performance in SMEs as the organizational inertia will be the mediator in this study. The respondents of this study consisted of owner or manager of the SMEs which is listed in the system. In this study, data collection will be executed in all states in Malaysia. Hence, this paper proposed on the framework of organizational inertia as mediator on the relationship between turnaround and organizational performance.