An exploratory study on involution and SWOT analysis: for MBA students

An exploratory study on involution and SWOT analysis: for MBA students (information from perplexity.ai)

My question 1: "What is involution all about with reference to corporate SWOT analysis?"

The reply: "In the context of corporate SWOT analysis, involution refers to a phenomenon where a company or organization becomes stuck in a state of ineffective effort and stagnation despite investing more energy and resources. It is characterized by repetitive internal behaviors that do not lead to meaningful growth or innovation, often resulting in internal conflicts, declining motivation, and inefficiency.

More specifically, involution in companies manifests as:

• Growth bottlenecks where neither leaders nor employees can break through current limitations.

• Employees repeating the same tasks without feeling valued or motivated.

• Lack of meaningful external interactions or a sense of powerlessness in collaboration.

• Internal conflicts and departments offsetting each other's efforts.

• Declining trust, inclusiveness, and rising negativity within the workforce.

• Overconfidence in growth plans misaligned with actual company capabilities.

• Reduced teamwork and innovation due to internal competition.

• Workflow complexity and inefficiency from excessive internal controls.

• Negative impacts on talent quality, recruitment, and motivation due to rigid policies and nepotism.

In relation to SWOT analysis, involution can be seen as a weakness or internal threat that hampers a company's ability to leverage its strengths or seize external opportunities effectively. It signals a need for strategic intervention to break the cycle of stagnation and foster innovation and motivation within the organization.

Thus, understanding involution helps companies identify internal barriers during SWOT analysis that prevent sustainable growth and competitive advantage, guiding them to develop strategies that address these internal inefficiencies and cultural issues.

No direct references link involution as a formal part of SWOT analysis itself, but recognizing involution as a corporate internal weakness or threat aligns with the SWOT framework's purpose of identifying internal and external factors affecting business performance."

My question 2: "What are the research gaps on this topic of involution from the perspective of corporate SWOT analysis?"

The reply: "The research gaps on the topic of involution in relation to corporate SWOT analysis can be summarized as follows, based on the broader literature on SWOT and strategic management:

1. Limited Integration of Involution Concept in SWOT Frameworks
   Current SWOT analysis research largely focuses on strengths, weaknesses, opportunities, and threats in a traditional, static manner. There is a gap in explicitly incorporating the concept of involution—internal stagnation and ineffective effort cycles—as a distinct internal weakness or threat within SWOT frameworks. This limits the ability of SWOT to diagnose cultural and motivational issues that cause organizational stagnation and inefficiency.

2. Need for Dynamic and Reflexive SWOT Approaches
   Traditional SWOT analysis is often criticized for being static, subjective, and qualitative, lacking integration with real-time data or dynamic organizational behaviors like involution. Research suggests enhancing SWOT with adaptive, data-driven, and continuous feedback mechanisms to better capture evolving internal challenges such as involution.

3. Lack of Quantitative and Empirical Studies on Involution within SWOT
   Most SWOT studies rely on qualitative insights or case studies without quantitatively measuring phenomena like involution or its impact on corporate performance. This creates a gap in empirical validation and generalizability of how involution affects strategic planning and execution through SWOT.

4. Contextual and Industry-Specific Variations Underexplored
   The manifestation of involution may vary widely across industries and organizational types, but current SWOT research often focuses on single cases or industries without exploring these differences. There is a need for broader, cross-industry studies to understand how involution influences SWOT factors differently in various corporate contexts.

5. Historical and Evolutionary Perspectives Missing
   Research on SWOT’s historical evolution reveals gaps in understanding how internal organizational dynamics like involution have been conceptualized or overlooked over time in strategic management tools. Bridging historical insights with modern challenges could enrich SWOT’s applicability to contemporary organizational issues such as involution.

6. Integration Across Strategic Levels and Implementation
   While SWOT is often used at the formulation stage, there is a gap in research on embedding SWOT analysis—including involution-related insights—across all strategic levels (corporate, business, functional) and throughout implementation processes. This integration is crucial to address involution’s complex, multi-level effects on organizations.

In summary, the key research gaps involve the need to explicitly incorporate involution as a critical internal factor in SWOT analysis, develop dynamic and data-informed SWOT methodologies, conduct empirical and cross-industry studies, and integrate these insights throughout strategic management processes. Addressing these gaps would enhance SWOT’s relevance and effectiveness in diagnosing and overcoming involution-related organizational challenges."

My question 3: "What are the academic theories to study this topic?"

The reply: "To study the topic of involution in relation to corporate SWOT analysis, several academic theories from strategic management and organizational studies are relevant. These theories provide frameworks to understand internal organizational dynamics, strategic decision-making, adaptation, and cultural factors that contribute to involution:

Theory	Relevance to Involution and SWOT
Classical Approach to Strategy	Focuses on rational planning and systematic analysis, useful to identify how rigid, top-down strategies may contribute to involution by limiting adaptability and innovation within SWOT’s internal factors
Evolutionary Perspective	Emphasizes adaptation, flexibility, and learning in dynamic markets. Helps explain how failure to adapt internally (involution) can be a weakness or threat in SWOT analysis
Processual Approach	Highlights emergent strategy from daily organizational interactions and culture. Useful to study involution as arising from informal internal processes and cultural stagnation impacting SWOT analysis
Resource-Based View (RBV)	Focuses on internal resources and capabilities as sources of competitive advantage. Involution can be analyzed as a depletion or mismanagement of these internal resources (a weakness in SWOT)
Dynamic Capabilities Theory	Examines how firms renew competencies to adapt to change. Involution reflects a failure in dynamic capabilities, relevant for SWOT’s internal assessment
Institutional Theory	Studies how organizational norms and culture influence behavior. Helps understand involution as a cultural or institutional inertia limiting strategic change in SWOT analysis
Human Resource-Based Theory	Emphasizes human factors as critical in strategy. Involution often involves employee motivation and internal conflicts, making this theory key to analyzing internal weaknesses in SWOT
Strategic Intent Theory	Focuses on ambitious goals and organizational learning. Lack of strategic intent or misaligned ambitions can cause involution, a weakness to address in SWOT
Evolutionary Social Science (ESS) Paradigm	Provides a multi-level evolutionary view of organizations as adaptive systems involving competition and cooperation. Useful for studying involution as an evolutionary failure or maladaptation within firms

 These theories collectively enable a comprehensive examination of involution from multiple angles: strategic planning, internal capabilities, organizational culture, human resources, and adaptation processes. Integrating them with SWOT analysis helps identify how involution manifests as internal weaknesses or threats and guides strategies to overcome it."

My question 4: "Please provide the references mentioned in a clear Harvard Referencing format."

The reply: "Here are the key academic references related to the theories mentioned for studying involution in corporate SWOT analysis, formatted in Harvard referencing style based on the search results:

Stoelhorst, J.W., 2024. A New Strategy Theory? Strategic Management As an Evolutionary Social Science. [pdf] University of Amsterdam. Available at: https://d30i16bbj53pdg.cloudfront.net/wp-content/uploads/2024/06/A-New-Strategy-Theory-Strategic-Management-As-an-Evolutionary-Social-Science.pdf [Accessed 13 July 2025].

Stoelhorst, J.W., 2014. The future of evolutionary economics is in a vision from the past. Journal of Institutional Economics, 10(4), pp.665-682. Available at: https://ideas.repec.org/a/cup/jinsec/v10y2014i04p665-682_00.html [Accessed 13 July 2025].

Wilson, D.S. and Snower, D.J., 2024. Rethinking the Theoretical Foundation of Economics I: The Multilevel Paradigm. Economics - The Open-Access, Open-Assessment E-Journal, 18(1), p.18. Available at: https://ideas.repec.org/a/bpj/econoa/v18y2024i1p18n1016.html [Accessed 13 July 2025].

Jones, N., et al., 2023. Integrating evolutionary theory and social–ecological systems research to address the sustainability challenges of the Anthropocene. Philosophical Transactions of the Royal Society B: Biological Sciences, 379(1893), 20220262. Available at: https://pmc.ncbi.nlm.nih.gov/articles/PMC10645068/ [Accessed 13 July 2025].

These references cover the Evolutionary Social Science paradigm, multilevel selection theory, generalized Darwinism, and related evolutionary and institutional theories highly relevant for analyzing involution as an internal organizational phenomenon within SWOT analysis frameworks."

My question 5: "What have been the public media-reported issues in PRC (notably in Hong Kong) on this topic over the past 10 years?"

The reply: "Over the past decade, public media reports in the PRC, notably in Hong Kong, have highlighted several issues related to corporate internal challenges that resonate with the concept of involution, although the term itself is not always explicitly used. Key reported issues include:

• Economic and Business Sentiment Fluctuations:
  Surveys and reports from Hong Kong’s Census and Statistics Department reveal fluctuating business sentiment among large enterprises, with increased caution amid external uncertainties such as geopolitical tensions, inflation, and global economic volatility. This environment can exacerbate internal organizational stagnation and inefficiencies, key features of involution as companies struggle to adapt and grow.

• Impact of Digital Transformation and Innovation Pressure:
  The rapid shift toward digital platforms, fintech innovations, and AI adoption in Hong Kong’s financial and technology sectors creates pressure on companies to innovate or risk internal stagnation. Media reports note both opportunities and challenges, including cybersecurity risks and the need for continuous strategic renewal to avoid involution-like internal deadlocks.

• Workforce and Cultural Challenges:
  Public discourse in Hong Kong has touched on issues such as employee motivation, talent retention, and internal conflicts within companies, especially in highly competitive sectors. These challenges reflect involution’s characteristics of repetitive effort without meaningful progress and internal friction.

• Shift in Consumer Behavior and Market Dynamics:
  The entertainment and media industry in Hong Kong has undergone significant transformation, with live events recovering slowly post-pandemic and advertising budgets shifting from traditional to digital formats. Such shifts require companies to break out of old patterns and innovate strategically, or else face involution-like stagnation.

• Policy and Infrastructure Development:
  Government initiatives, such as investments in innovation and technology parks, aim to stimulate economic growth and corporate dynamism. However, media coverage also notes the complexity and uncertainty businesses face in leveraging these opportunities fully, which can contribute to internal organizational inertia if not managed well.

• Rising Financial Crime and Compliance Risks:
  Increasing concerns about financial crime and cybersecurity risks in Hong Kong’s corporate sector add to internal pressures, requiring firms to enhance risk management and compliance capabilities. Failure to do so can lead to operational inefficiencies and internal dysfunction, aspects related to involution.

In summary, while public media in Hong Kong and the PRC over the past 10 years may not explicitly frame these issues as "involution," the reported economic uncertainties, digital transformation challenges, workforce dynamics, and sectoral shifts collectively reflect the internal organizational struggles and stagnation that involution describes. These issues have been widely discussed in business sentiment reports, industry outlooks, government policy releases, and risk assessments.

If you need specific media articles or reports on these themes, I can help locate them based on your focus."

My question 6: "Suggest 4 related research objectives and 2 research questions on this topic in the context of the retail sector in Hong Kong in 2025."

The reply: "Based on the current retail sector context in Hong Kong in 2025 and the concept of involution related to internal organizational stagnation and strategic challenges, here are 4 related research objectives and 2 research questions:

Research Objectives

1. To analyze how involution manifests as internal weaknesses or threats within retail companies in Hong Kong amid economic pressures and intensified cross-border competition.

2. To evaluate the impact of evolving consumer behaviors and digital transformation on the strategic adaptation and organizational dynamics of Hong Kong retail firms.

3. To investigate the role of corporate culture, employee motivation, and internal collaboration in either exacerbating or mitigating involution in the retail sector.

4. To identify strategic opportunities and organizational capabilities that Hong Kong retail businesses can leverage to overcome involution and sustain competitive advantage in a challenging market environment.

Research Questions

1. How does involution influence the internal strategic weaknesses and threats identified in SWOT analyses of retail companies operating in Hong Kong in 2025?

2. What organizational and strategic factors enable Hong Kong retail firms to break free from involution and successfully adapt to the changing market dynamics, including competition from e-commerce giants and shifting consumer preferences?

These objectives and questions align with the current challenges faced by Hong Kong’s retail sector, such as declining sales, competition from mainland e-commerce platforms, shifting consumer patterns, and the need for internal organizational renewal highlighted in recent reports."

My question 7: "What are the academic, practical and originality values of this study?"

The reply: "The study of involution in the retail sector in Hong Kong through the lens of corporate SWOT analysis holds significant academic, practical, and originality values as follows:

Academic Value

• Fills a Research Gap: The study addresses the underexplored integration of involution—a concept describing internal organizational stagnation—within the SWOT framework, particularly in the retail sector. This contributes to strategic management literature by linking cultural and motivational internal dynamics with classical SWOT analysis, which traditionally lacks such depth.

• Advances Retail Innovation and Organizational Theory: By focusing on involution, the research enriches understanding of how retail firms manage innovation, internal collaboration, and employee motivation amid rapid technological and market changes, complementing existing work on retail innovation management and continuous improvement theories.

• Empirical Contribution: The study can provide empirical insights specific to Hong Kong’s retail sector in 2025, a dynamic and evolving market environment, adding to the global academic discourse on retail strategy and organizational behavior.

Practical Value

• Strategic Diagnosis and Intervention: Retail managers can use findings to better identify internal weaknesses and threats caused by involution, enabling more effective SWOT analyses and targeted strategies to overcome stagnation and enhance adaptability.

• Improved Employee Retention and Motivation: Insights into involution’s impact on workforce dynamics can inform HR practices, helping retailers enhance employee retention and performance, which is critical in a sector facing talent challenges.

• Facilitates Innovation and Digital Transformation: Understanding involution helps retailers align innovation management and digital transformation efforts with internal organizational realities, improving the effectiveness of change initiatives.

• Policy and Training Implications: The study’s findings can guide policymakers and industry bodies in designing support programs and training that address involution-related challenges in retail.

Originality Value

• Novel Application of Involution Concept: Applying the sociological and organizational notion of involution to corporate SWOT analysis in the retail context, especially in Hong Kong, is a fresh perspective that bridges social theory and strategic management.

• Context-Specific Focus: The study’s concentration on Hong Kong’s retail sector in 2025 captures unique market, cultural, and economic conditions, offering original insights distinct from existing research predominantly focused on Western or other Asian markets.

• Interdisciplinary Approach: By integrating theories from human capital, institutional, and evolutionary perspectives with SWOT analysis and retail innovation research, the study offers a comprehensive and innovative analytical framework.

• Addressing Contemporary Challenges: The research responds to current issues such as digital disruption, shifting consumer behavior, and workforce dynamics, making it timely and relevant.

In sum, this study promises to contribute original theoretical insights, practical solutions for retail management, and empirical evidence to an emerging and important area of research at the intersection of involution, corporate strategy, and retail innovation."

A collection of blog notes on using chatgpt for research purpose.