Path Creation, Path Dependency, and Alternative Theories of the Firm

  title={Path Creation, Path Dependency, and Alternative Theories of the Firm},
  author={Martin Stack and Myles P Gartland},
  journal={Journal of Economic Issues},
  pages={487 - 494}
During the 1980s, Paul David and Brian Arthur published several papers that are now regarded as the foundation of path dependency (David 1985; Arthur 1989, 1990). The basic assertion in these and related essays is that sub-optimal or inefficient technologies can be become locked in as industry standards, and in instances where there are significant network effects, these inefficiencies may persist for extended periods of time.'1 While we are convinced by the path dependency insight that… 
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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
Strategic path dependence: Introducing the distinction between mechanism and pattern inscription
This paper focuses on the strategic trajectory of incumbent firms coping with path dependence and thus with a diminished range of strategic variety and choice. It is argued that an organization’s
The Effects of Exogenous Shocks on the Development of Regional Innovation Systems
Abstract Drawing on previous studies related to the evolutionary aspects of regional innovation systems (RIS), this paper examines how an exogenous shock reduced organizational thinness,
Path generation in a path dependent industry : the influence from theestablished technology
This thesis studies technological development in multi-technology industries, or industries characterized by co-existence of several technological alternatives that are used in the same or largely
Orphan innovation , or when path-creation goes stale : a design framework to characterize path-dependence in realtime Marine Agogué ( 1 ) and
How can we identify whether innovation processes in an organization, a region or a sector are stagnating? Moreover, how can we assess the degree of innovation stagnation? These are issues at the core
The Effect of Path-Dependence and Uncertainty on the Value of Mature Technologies
This paper examines whether technological advances benefit more from path-dependent or path-creating capabilities. Consistently with recent advances in the literature, we argue that multiple
Orphan innovation, or when path-creation goes stale: a design framework to characterise path-dependence in real time
This work develops a framework to visualise three types of innovation pathways and applies this framework to two case studies to explore its utility as a reference for assessing the degree of innovativeness for a field of innovation.
Exploring the Origins of Organizational Paths: Empirical Evidence From Newly Founded Firms
The notion of path dependence in organizational processes has intrigued scholars for several decades. Yet, while extant studies provide rich insights on the factors that cause persistence in
The repeal of prohibition and the resurgence of the national breweries: Productive efficiency or path creation?
Purpose – This paper, applies the concept of path creation to a historical case. Path creation arose in part as a response to perceived weaknesses regarding the limited role of firm agency in the


Path Dependence, its Critics, and the Quest for ‘Historical Economics’
It is now widely acknowledged that institutions are a crucial factor in economic performance. Major developments have been made in our understanding of the nature and evolution of economic
Positive feedbacks in the economy
An important new theory about how small chance events early in the history of an industry or technology can tilt, forever, its competitive balance Economic theory still rests on century-old notions
Path dependence and creation
Contents: A.P. Brief, J.P. Walsh, Series Editors' Foreword. Preface. R. Garud, P. Karnoe, Path Creation as a Process of Mindful Deviation. Part I:Path Dependence and Beyond. A.P. Bassanini, G. Dosi,
This paper examines the dynamics of allocation under increasing returns within a model where agents choose between technologies competing for adoption and where each technology improves as it gains
Standards, Modularity, and Innovation: The Case of Medical Practice
Most economic analyses of path creation and dependence are stories about how standards create network externalities - and thus potential "lock-in" - in technological systems like personal computers
The Political Economy of Controls: American Sugar
This paper outlines the salient characteristics of competing models of economic regulation and controls. It then examines the evolution of the American sugar program from 1934 to 1987 in the light of
Competing Technologies , Increasing Returns , and Lock-In by Historical Events
Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use
The Emergence of the National Brewing Oligopoly: Competition in the American Market, 1933–1958
  • A. McGahan
  • History, Economics
    Business History Review
  • 1991
In 1966 the Supreme Court expressed a desire to arrest consolidation of the brewing industry “in its incipiency.” This article argues that a national brewing oligopoly had already emerged by that
Local and Regional Breweries in America's Brewing Industry, 1865 to 1920
  • M. Stack
  • History, Economics
    Business History Review
  • 2000
Between the end of the Civil War and the enactment of national Prohibition in 1920, America's brewing industry grew to become one of the nation's leading manufacturing industries. During the first
Sprayed to Death: Path Dependence, Lock-in and Pest Control Strategies
Theoretical literature on the economics of technology has emphasized the effects on technological trajectories of positive feedbacks. In a competition among technologies that all perform a similar