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Shackled to the Status Quo: The Inhibiting Effects of Incumbent System Habit, Switching Costs, and Inertia on New System Acceptance
Abstract
Given that adoption of a new system often implies fully or partly replacing an incumbent system, resistance is often manifested as failure of a user to switch from an incumbent technology to a newly introduced one. Thus, a potential source of resistance to adopting a new system lies in the use of an incumbent system. Using the status quo bias and habit literatures as theoretical lenses, the study explains how use of an incumbent system negatively impacts new system perceptions and usage intentions. We argue that habitual use of an incumbent system, rationalization due to perceived transition costs, and psychological commitment due to perceived sunk costs all encourage development of inertia. Inertia in turn fully mediates the impact of these incumbent system constructs on constructs related to acceptance of the new system via psychological commitment based on cognitive consistency and by increasing the importance of normative pressures. Specifically, we hypothesize that inertia leads to decreased perceptions of the ease of use and relative advantage of a newly introduced system and has a negative impact on intentions to use the new system, above and beyond its impact through perceptions. Finally, we hypothesize that inertia moderates the relationship between subjective norm and intention, such that normative pressures to use a new system become more important in the presence of inertia. Empirical results largely support the hypothesized relationships showing the inhibiting effect of incumbent-system habit, transition and sunk costs, and inertia on acceptance of a new system. Our study thus extends theoretical understanding of the role of incumbent system constructs such as habit and inertia in technology acceptance, and lays the foundations for further study of the interplay between perceptions and cognition with respect to the incumbent system and those with respect to a new system.
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“Compared with the decision to retain a premium subscription, the decision to upgrade represents a departure from the users' status quo”
From What drives subscribing to premium in freemium services? A consumer value‐based view of differences between upgrading to and staying with premium (2020) · cites this paper as Polites & Karahanna, 2012
In the citing paper
“While the intention to retain the premium subscription essentially means continuance of an existing behavior, the intention to upgrade from free to the premium subscription means a departure from the user's status quo (Kim & Kankanhalli, 2009;Polites & Karahanna, 2012).”
From What drives subscribing to premium in freemium services? A consumer value‐based view of differences between upgrading to and staying with premium (2020) · cites this paper as Polites & Karahanna, 2012
In the citing paper
“Moreover, inertia can be divided into two distinct measures: first, cognitive inertia and second, affective inertia (Greenfield 2005; Polites and Karahanna 2012).”
From Health insurance policy renewal: an exploration of reputation, performance, and affect to understand customer inertia (2022) · cites this paper as Polites and Karahanna 2012
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“Switching cost is measured by items of transition cost and sunk cost taken from Polites and Karahanna (45) and Bansal et al. (58).”
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“Since customers with stronger usage inertia tend to enjoy using or are affectively attached to the incumbent mobile payment system (Polites & Karahanna, 2012), they are less likely to have a thought of switching to an alternative system.”
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Wilson, E. V., & Lankton, N. K. (2013) · Communications of the Association for Information Systems · doi:10.17705/1cais.03303 · Cited by 23
“This recognition has prompted researchers in IT continuance and other domains to develop independent measures of habit strength and prior behavior [Limayem, Hirt and Cheung, 2007; Verplanken and Orbell, 2003] and to include subjective habit measures in models of IT adoption [Pahnila, Siponen and Zheng, 2011; Polites a…”
MethodFactors impeding buy now, pay later (BNPL) adoption in India: A mixed-method approach
Mukherjee, S. (2025) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2025.104402 · Cited by 23
"Incumbent System Context and Job Outcomes of Effective Enterprise System Use "
Independent Researcher, U., Hornyak, R., Rai, A., & Dong, J. Q. (2020) · Journal of the Association for Information Systems · doi:10.17705/1jais.00605 · Cited by 23
“We employ this focus because an ES is typically implemented to replace an incumbent system (Polites & Karahanna, 2012).”
BackgroundMethodResultInfluentialVerma, B., Schulze, M., Goswami, D., & Upreti, K. (2025) · Frontiers in Artificial Intelligence · doi:10.3389/frai.2025.1623534 · Cited by 23
Metadata
- Authors
- Polites, G. L., & Karahanna, E.
- Affiliations
- Bucknell University (US)
- University of Georgia (US)
- Venue
- MIS Quarterly
- Publisher
- MIS Quarterly
- Published
- 2012-03-01
- Volume
- 36
- Issue
- 1
- Pages
- 21-42
- ISSN
- 0276-7783 (ISSN-L)
- 2162-9730
- OpenAlex
- W4401611614
- Cited by
- 215
- References
- 0
- Citations by year
- 2026: 27 · 2025: 56 · 2024: 27 · 2023: 26 · 2022: 11 · 2021: 16 · 2020: 9 · 2019: 12 · 2018: 10 · 2017: 8 · 2016: 3 · 2015: 3 · 2013: 4 · 2012: 1
- FWCI
- 5.21
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- MIS Quarterly (publishedVersion)
- Journal of the Association for Information Systems (submittedVersion)
- Topics
- Social Sciences › Decision Sciences › Information Systems and Management › Technology Adoption and User Behaviour
- Social Sciences › Business, Management and Accounting › Management Information Systems › Information Systems Theories and Implementation
- Social Sciences › Business, Management and Accounting › Management Information Systems › ERP Systems Implementation and Impact
- Keywords
- technology adoption, status quo bias, habit, inertia, switching costs, sunk costs, resistance to change, technology acceptance, perceived ease of use, relative advantage, intention to use, subjective norms, normative pressure, cognitive consistency, psychological commitment
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