IDEAS home Printed from https://ideas.repec.org/a/spr/busres/v13y2020i3d10.1007_s40685-020-00118-w.html
   My bibliography  Save this article

Agency in the face of path dependence: how organizations can regain scope for maneuver

Author

Listed:
  • Johann Fortwengel

    (King’s College London)

  • Arne Keller

    (Johannes Kepler University Linz)

Abstract

This paper tackles a key problem in path dependence research: how can locked-in organizations regain their scope for maneuver? Leveraging insights from two surprising and thus revelatory cases of organizations that have successfully escaped from path dependence, we develop the theoretical argument that regaining scope for maneuver can be achieved by interrupting the logic of a path’s underlying self-reinforcing mechanisms. More specifically, we argue that, through a targeted interruption of the working of these mechanisms, hyper-stable patterns inscribed in an organization can be gradually rewound—and alternative futures become possible. We position our paper within larger debates around the role of agency in path dependence theorizing, and we outline research frontiers to better understand the necessary antecedents of and exact relationship between mechanisms interruption and pattern unwinding.

Suggested Citation

  • Johann Fortwengel & Arne Keller, 2020. "Agency in the face of path dependence: how organizations can regain scope for maneuver," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1169-1201, November.
  • Handle: RePEc:spr:busres:v:13:y:2020:i:3:d:10.1007_s40685-020-00118-w
    DOI: 10.1007/s40685-020-00118-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40685-020-00118-w
    File Function: Abstract
    Download Restriction: no

    File URL: https://libkey.io/10.1007/s40685-020-00118-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
    2. Waldemar Kremser & Georg Schreyögg, 2016. "The Dynamics of Interrelated Routines: Introducing the Cluster Level," Organization Science, INFORMS, vol. 27(3), pages 698-721, June.
    3. Carlo Salvato & Roberto Vassolo, 2018. "The sources of dynamism in dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1728-1752, June.
    4. Haridimos Tsoukas & Robert Chia, 2002. "On Organizational Becoming: Rethinking Organizational Change," Organization Science, INFORMS, vol. 13(5), pages 567-582, October.
    5. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    6. Raghu Garud & Arun Kumaraswamy & Peter Karnøe, 2010. "Path Dependence or Path Creation?," Journal of Management Studies, Wiley Blackwell, vol. 47(4), pages 760-774, June.
    7. Jörg Sydow & Frank Lerch & Udo Staber, 2010. "Planning for Path Dependence? The Case of a Network in the Berlin‐Brandenburg Optics Cluster," Economic Geography, Clark University, vol. 86(2), pages 173-195, April.
    8. Burgelman, Robert A., 2002. "Strategy as Vector and the Inertia of Co-evolutionary Lock-in," Research Papers 1745, Stanford University, Graduate School of Business.
    9. Leonhard Dobusch & Elke Schüßler, 2013. "Theorizing path dependence: a review of positive feedback mechanisms in technology markets, regional clusters, and organizations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(3), pages 617-647, June.
    10. Arne Petermann & Georg Schreyögg & Daniel Fürstenau, 2019. "Can hierarchy hold back the dynamics of self-reinforcing processes? A simulation study on path dependence in hierarchies," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 637-669, December.
    11. Alfred Kieser, 1994. "Why Organization Theory Needs Historical Analyses—And How This Should Be Performed," Organization Science, INFORMS, vol. 5(4), pages 608-620, November.
    12. Rothmann, Wasko & Koch, Jochen, 2014. "Creativity in strategic lock-ins: The newspaper industry and the digital revolution," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 66-83.
    13. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    14. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    15. Thelen,Kathleen, 2004. "How Institutions Evolve," Cambridge Books, Cambridge University Press, number 9780521546744.
    16. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    17. Ron Martin, 2010. "Roepke Lecture in Economic Geography—Rethinking Regional Path Dependence: Beyond Lock-in to Evolution," Economic Geography, Taylor & Francis Journals, vol. 86(1), pages 1-27, January.
    18. Fortwengel, Johann & Jackson, Gregory, 2016. "Legitimizing the apprenticeship practice in a distant environment: Institutional entrepreneurship through inter-organizational networks," Journal of World Business, Elsevier, vol. 51(6), pages 895-909.
    19. Jörg Sydow & Frank Lerch & Udo Staber, 2010. "Planning for Path Dependence? The Case of a Network in the Berlin-Brandenburg Optics Cluster," Economic Geography, Taylor & Francis Journals, vol. 86(2), pages 173-195, April.
    20. Andrew M. Pettigrew, 1990. "Longitudinal Field Research on Change: Theory and Practice," Organization Science, INFORMS, vol. 1(3), pages 267-292, August.
    21. Cusumano, Michael A. & Mylonadis, Yiorgos & Rosenbloom, Richard S., 1992. "Strategic Maneuvering and Mass-Market Dynamics: The Triumph of VHS over Beta," Business History Review, Cambridge University Press, vol. 66(1), pages 51-94, April.
    22. Rodolphe Durand & Jean-Philippe Vergne, 2011. "The Path of Most Persistence: An Evolutionary Perspective on Path Dependence and Dynamic Capabilities," Post-Print hal-00583118, HAL.
    23. Ennen, Edgar & Richter, Ansgar, 2009. "The Whole Is More Than the Sum of Its Parts - Or Is It? A Review of the Empirical Literature on Complementarities in Organizations," MPRA Paper 15666, University Library of Munich, Germany.
    24. Gerald F. Davis & Christopher Marquis, 2005. "Prospects for Organization Theory in the Early Twenty-First Century: Institutional Fields and Mechanisms," Organization Science, INFORMS, vol. 16(4), pages 332-343, August.
    25. Roy Suddaby & Diego Coraiola & Charles Harvey & William Foster, 2020. "History and the micro‐foundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 41(3), pages 530-556, March.
    26. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    27. Jochen Koch, 2008. "Strategic Paths and Media Management – a Path Dependency Analysis of the German Newspaper Branch of High Quality Journalism," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 60(1), pages 50-73, January.
    28. Pierson, Paul, 2000. "Increasing Returns, Path Dependence, and the Study of Politics," American Political Science Review, Cambridge University Press, vol. 94(2), pages 251-267, June.
    29. Michael Gibbert & Winfried Ruigrok & Barbara Wicki, 2008. "What passes as a rigorous case study?," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1465-1474, December.
    30. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    31. Robert A. Burgelman, 2010. "Strategic Consequences of Co-evolutionary Lock-in: Insights from a Longitudinal Process Study," Palgrave Macmillan Books, in: Georg Schreyögg & Jörg Sydow (ed.), The Hidden Dynamics of Path Dependence, chapter 14, pages 233-248, Palgrave Macmillan.
    32. Olivier Berthod & Jörg Sydow, 2013. "Locked in the Iron Cage? When Institutionalization Is (not) a Path-Dependent Process," Palgrave Macmillan Books, in: Jörg Sydow & Georg Schreyögg (ed.), Self-Reinforcing Processes in and among Organizations, chapter 11, pages 204-229, Palgrave Macmillan.
    33. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    34. Thelen,Kathleen, 2004. "How Institutions Evolve," Cambridge Books, Cambridge University Press, number 9780521837682.
    35. Jean‐Philippe Vergne & Rodolphe Durand, 2010. "The Missing Link Between the Theory and Empirics of Path Dependence: Conceptual Clarification, Testability Issue, and Methodological Implications," Journal of Management Studies, Wiley Blackwell, vol. 47(4), pages 736-759, June.
    36. Nils Stieglitz & Klaus Heine, 2007. "Innovations and the role of complementarities in a strategic theory of the firm," Strategic Management Journal, Wiley Blackwell, vol. 28(1), pages 1-15, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin Ron & Sunley Peter, 2022. "Making history matter more in evolutionary economic geography," ZFW – Advances in Economic Geography, De Gruyter, vol. 66(2), pages 65-80, July.
    2. Sydow, Jörg & Schreyögg, Georg & Koch, Jochen, 2020. "Current interest in the theory of organizational path dependence: A short update on the occasion of the 2019 AMR Decade Award," Discussion Papers 2020/12, Free University Berlin, School of Business & Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leonhard Dobusch & Elke Schüßler, 2013. "Theorizing path dependence: a review of positive feedback mechanisms in technology markets, regional clusters, and organizations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(3), pages 617-647, June.
    2. Martin Henning & Erik Stam & Rik Wenting, 2013. "Path Dependence Research in Regional Economic Development: Cacophony or Knowledge Accumulation?," Regional Studies, Taylor & Francis Journals, vol. 47(8), pages 1348-1362, September.
    3. Yaping Liu & Jie Yu, 2022. "Path dependence in pro-poor tourism," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(1), pages 973-993, January.
    4. Sven M. Laudien & Birgit Daxböck, 2016. "Path dependence as a barrier to business model change in manufacturing firms: insights from a multiple-case study," Journal of Business Economics, Springer, vol. 86(6), pages 611-645, August.
    5. Arne Petermann & Georg Schreyögg & Daniel Fürstenau, 2019. "Can hierarchy hold back the dynamics of self-reinforcing processes? A simulation study on path dependence in hierarchies," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 637-669, December.
    6. Joern Hoppmann & Alice Sakhel & Marcel Richert, 2018. "With a little help from a stranger: The impact of external change agents on corporate sustainability investments," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 1052-1066, November.
    7. Rothmann, Wasko & Koch, Jochen, 2014. "Creativity in strategic lock-ins: The newspaper industry and the digital revolution," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 66-83.
    8. Ron Martin, 2010. "Roepke Lecture in Economic Geography—Rethinking Regional Path Dependence: Beyond Lock-in to Evolution," Economic Geography, Taylor & Francis Journals, vol. 86(1), pages 1-27, January.
    9. Law, Florence, 2018. "Breaking the outsourcing path: Backsourcing process and outsourcing lock-in," European Management Journal, Elsevier, vol. 36(3), pages 341-352.
    10. Johann Fortwengel, 2017. "Practice Transfer in Organizations: The Role of Governance Mode for Internal and External Fit," Organization Science, INFORMS, vol. 28(4), pages 690-710, August.
    11. Shengjun Zhu & Canfei He & Yi Zhou, 2015. "How to jump further? Path dependent and path breaking in an uneven industry space," Papers in Evolutionary Economic Geography (PEEG) 1524, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    12. Vissers Geert & Dankbaar Ben, 2013. "Path dependence and path plasticity: textile cities in the Netherlands," ZFW – Advances in Economic Geography, De Gruyter, vol. 57(1-2), pages 83-95, October.
    13. Waldemar Kremser & Georg Schreyögg, 2016. "The Dynamics of Interrelated Routines: Introducing the Cluster Level," Organization Science, INFORMS, vol. 27(3), pages 698-721, June.
    14. Bohnsack, René & Kurtz, Hannes & Hanelt, André, 2021. "Re-examining path dependence in the digital age: The evolution of connected car business models," Research Policy, Elsevier, vol. 50(9).
    15. Garud, Raghu & Gehman, Joel, 2012. "Metatheoretical perspectives on sustainability journeys: Evolutionary, relational and durational," Research Policy, Elsevier, vol. 41(6), pages 980-995.
    16. da Rocha, Angela & Kury, Beatriz & Tomassini, Rodrigo & Velloso, Luciana, 2017. "Strategic Responses to Environmental Turbulence: A Study of Four Brazilian Exporting Clusters," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 39, pages 155-174.
    17. Roberta Capello & Camilla Lenzi, 2018. "The dynamics of regional learning paradigms and trajectories," Journal of Evolutionary Economics, Springer, vol. 28(4), pages 727-748, September.
    18. Schmidt, Tobias S. & Battke, Benedikt & Grosspietsch, David & Hoffmann, Volker H., 2016. "Do deployment policies pick technologies by (not) picking applications?—A simulation of investment decisions in technologies with multiple applications," Research Policy, Elsevier, vol. 45(10), pages 1965-1983.
    19. Verdu-Jover, Antonio J. & Alos-Simo, Lirios & Gomez-Gras, Jose-Maria, 2018. "Adaptive culture and product/service innovation outcomes," European Management Journal, Elsevier, vol. 36(3), pages 330-340.
    20. Miörner, Johan & Trippl, Michaela, 2016. "Paving the way for new regional industrial paths: Actors of change in Scania’s games industry," Papers in Innovation Studies 2016/19, Lund University, CIRCLE - Centre for Innovation Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:busres:v:13:y:2020:i:3:d:10.1007_s40685-020-00118-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.