In today’s dynamic business landscape, firms grapple with constant shifts in technological, political, economic, and social dimensions, necessitating strategic change for sustained relevance. However, strategic inertia afflicts many firms, hindering adaptation and impeding progress. Existing literature primarily explores industry and organizational antecedents, leaving it unclear how managers, especially CEOs, influence strategic inertia. To fill the void, we turn to the literature on CEO-TMT interface, proposing that CEO humility—a positive personality trait exhibited by CEO—shapes TMT reflexivity, which is a shared cognitive state vital for adaptive decision-making. The findings based on multiple sources and three-wave survey data from 141 firms indicate that CEO humility indirectly affects strategic inertia through TMT reflexivity. Moreover, the relationship is moderated by the CEO-TMT exchange differentiation. Our study offers insights into reducing organizational inertia, elucidating the microfoundations and cognitive dynamics of strategic change. We also advance the understanding of strategic implications of humble CEOs by exploring their interaction with TMT members.
