This paper addresses the foundational aspects of the theory of Gen inertia. We attempt to emphasize the cognitive factors that accounts for learning inertia in organizations, and that which prevents employees from generating and absorbing new knowledge. The novel concept of Gen inertia helps us...

We analyze in an incomplete contracts model whether a supplier should be integrated if in addition to his investment level he chooses the degree of relationship specificity. A basic trade-off arises: While non-integration leads to higher investment incentives, potential synergies are foregone....