Linking Organizational Inertia, Cynicism and Employee Performance: Evidence from State Owned Enterprises in Pakistan
Abstract
This research observes the effect of organizational inertia on employee performance, where organizational cynicism playing mediating role within State-Owned Enterprises (SOEs) in Pakistan. Quantitative research design was used in this study and data were accumulated from 400 employees who are serving in four main Pakistani SOEs within the duration of September 2025 to December 2025. SEM technique was applied to examine the theorized direct and mediating connections. The outcomes of the study disclose that organizational inertia has a significant negative effect on employee performance and it positively impacts organizational cynicism. Additionally, organizational cynicism meaningfully mediating between organizational inertia and employee performance, which signifying that inertia based organizational practices destabilize employee performance both directly and indirectly through nurturing cynical attitudes between workers. This research strategically contributes organizational behavior literature by revealing the psychological appliance by which organizational inertia upsets employee performance outcomes. Essentially, the findings of the study propose that managers in SOEs should discourage rigid organizational practices and proactively deal cynical opinions to improve employee performance.
Keywords: Organizational inertia, Employee performance, Organizational Cynicism, State-Owned Enterprises, Pakistan.
