To enable a better understanding of the underlying logic of path dependence, we set forth a theoretical framework explaining how organizations become path dependent. At its core are the dynamics of self-reinforcing mechanisms, which are likely to lead an organization into a lock-in. By drawing on studies of technological paths, we conceptualize the emergent process of path dependence along three distinct stages. We also use the model to explore breakouts from organizational path dependence and discuss implications for managing and researching organizational paths.

No abstract

An important new stream of thought stressing the importance of organizational fluidity has emerged in recent years. It represents a reaction to the increasing complexity and environmental turbulence that organizations have to master. The solutions proposed are highly flexible and fluid organizational forms, based on relentlessly changing templates, quick improvisation, and ad-hoc responses. This approach is in sharp contrast to other recent organizational research that emphasizes identity, path dependence, economies of specialization, and recursive practices. We juxtapose the idea of organizational fluidity with this latter stream of research. If taken to its final conclusion, then the idea of promoting organizational fluidity would imply losing the very essence of organizing. Nevertheless, achieving organizational flexibility remains imperative in increasingly complex and volatile environments. To deal with this dilemma, an alternative approach is needed. We suggest a conceptualization of this dilemma that emphasizes the complementary dynamics between the two perspectives. We therefore provide an alternative conception that favors the idea of balancing countervailing processes in organizations with respect to the conflicting demands of organizational efficiency and fluidity.

The structuring and behaviour of organizations is increasingly explained with the help of process theories, taking into account that history and sequencing matter. Among them, the notion of path dependence has gained prominence, in particular when an explanation for the rigidification of organizational routines and strategies is at stake. The distinguishing feature of this concept is its emphasis on self-reinforcing mechanisms when explaining the dynamics of narrowing down the scope of alternative actions in and among organizations. After having presented and discussed the theory of organizational path dependence, the paper highlights commonalities and contrasts between related concepts. Thereafter, the papers of this Special Themed Section will be introduced.