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Path Dependence, Behavioral Rules, and the Role of Entrepreneurship in Economic Change: The Case of the Automobile Industry

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  • Heffernan, Gail M

Abstract

This paper develops a complementary theory of path dependence based on rigidity resulting from the choice of management system within the firm. Rules-following behavior introduces rigidity which can lead to inefficient path dependence within a firm. Entrepreneurial alertness, in a crisis, can prevent lock-in from occurring since it leads people to alter perceptions and change behavior. An empirical look at the automobile industry explores the idea of rules-following behavior inducing path dependence development and the potential for change despite inefficient path dependent behavior. Copyright 2003 by Kluwer Academic Publishers

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  • Heffernan, Gail M, 2003. "Path Dependence, Behavioral Rules, and the Role of Entrepreneurship in Economic Change: The Case of the Automobile Industry," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 16(1), pages 45-62, March.
    • Handle: RePEc:kap:revaec:v:16:y:2003:i:1:p:45-62
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    Cited by:

    1. Gong, Yiwei & Janssen, Marijn, 2019. "The value of and myths about enterprise architecture," International Journal of Information Management, Elsevier, vol. 46(C), pages 1-9.
    2. Anna Dahlqvist & Patrik S derholm, 2019. "Industrial Energy Use, Management Practices and Price Signals: The Case of Swedish Process Industry," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 30-45.
    3. Wu, Zhanglan & Shao, Qinglong & Su, Yantao & Zhang, Dan, 2021. "A socio-technical transition path for new energy vehicles in China: A multi-level perspective," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    4. Mats Williander, 2007. "Absorptive capacity and interpretation system's impact when ‘going green’: an empirical study of ford, volvo cars and toyota," Business Strategy and the Environment, Wiley Blackwell, vol. 16(3), pages 202-213, March.
    5. Blomberg, Jerry & Henriksson, Eva & Lundmark, Robert, 2012. "Energy efficiency and policy in Swedish pulp and paper mills: A data envelopment analysis approach," Energy Policy, Elsevier, vol. 42(C), pages 569-579.
    6. Wu Zhao & Jizhen Li & Xiaohua Li & Thomas Schøtt, 2020. "Implications of Network Diversity for Venture Growth: The Mediation Effect of Entrepreneurial Alertness," Sustainability, MDPI, vol. 12(22), pages 1-15, November.
    7. Ron Martin & Peter Sunley, 2010. "The Place of Path Dependence in an Evolutionary Perspective on the Economic Landscape," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 3, Edward Elgar Publishing.

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