TY - JOUR

T1 - Theorizing path dependence

T2 - A review of positive feedback mechanisms in technology markets, regional clusters, and organizations

AU - Dobusch, Leonhard

AU - Schüßler, Elke

N1 - Previous versions of this article have been presented at various conferences such as the 23rd EGOS Colloquium 2007 and the VHB-Pfingsttagung 2008 and have been discussed widely in the context of the Pfadkolleg Research Center at Freie Universität Berlin, Germany. We are thankful for all the useful feedback we have received there. We are particularly indebted to Jörg Sydow, Jakob Kapeller, Sigrid Quack, Arndt Sorge, Jan Jacobs, Stefan Kirchner, and Sanneke Kuipers for their detailed comments on previous versions of this manuscript. We also thank several anonymous reviewers who have supported the development of this article. This research as been funded by the German research foundation DFG (Deutsche Forschungsgemeinschaft).

PY - 2013/6

Y1 - 2013/6

N2 - The concept of path dependence has often been criticized as vague and only narrowly applicable. Although we can find some very refined definitions of the concept, we also find a wide range of empirical phenomena being described as path-dependent. We argue that more detailed accounts of the positive feedback mechanisms that form paths can take path dependence beyond this state of being overdetermined, but under-specified. Reviewing three well-described cases of path-dependent dynamics in technology markets, regional clustering, and organizations, we define a core set of positive feedback mechanisms that constitute path dependence at different analysis levels and clarify the relationship between positive feedback and increasing returns. We show that path-dependent processes, that is, processes driven by positive feedback that veer toward rigidity or lock-in, can be (but do not have to be) found under many labels, including structural inertia, coevolution, or institutional persistence. We conclude that a precise definition of path dependence does not need to be at odds with the concept's widespread use in understanding organizational and industrial development processes.

AB - The concept of path dependence has often been criticized as vague and only narrowly applicable. Although we can find some very refined definitions of the concept, we also find a wide range of empirical phenomena being described as path-dependent. We argue that more detailed accounts of the positive feedback mechanisms that form paths can take path dependence beyond this state of being overdetermined, but under-specified. Reviewing three well-described cases of path-dependent dynamics in technology markets, regional clustering, and organizations, we define a core set of positive feedback mechanisms that constitute path dependence at different analysis levels and clarify the relationship between positive feedback and increasing returns. We show that path-dependent processes, that is, processes driven by positive feedback that veer toward rigidity or lock-in, can be (but do not have to be) found under many labels, including structural inertia, coevolution, or institutional persistence. We conclude that a precise definition of path dependence does not need to be at odds with the concept's widespread use in understanding organizational and industrial development processes.

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=84878457864&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/32392054-5a06-3cdb-9021-e527cd50a32b/

U2 - 10.17169/refubium-24478

DO - 10.17169/refubium-24478

M3 - Journal articles

AN - SCOPUS:84878457864

VL - 22

SP - 617

EP - 647

JO - Industrial and Corporate Change

JF - Industrial and Corporate Change

SN - 0960-6491

IS - 3

ER -