Continuity in Change — Path Dependence and Transformation in Two Swedish Multinationals

Olof Brunninge and Leif Melin

Chapter 6 in The Hidden Dynamics of Path Dependence, 2010, pp 94-109 from Palgrave Macmillan

Abstract: Abstract Stability and change are central concepts in the field of strategic management. While companies are confronted with pressures for change, there are also inertial forces that tie organizations to established patterns. Hence, Melin (1998) describes the strategy process as a struggle between what exists and the possibilities for the future. Since the mid-1980s, a growing body of literature on path dependence has elaborated on the phenomenon of lock-ins during development trajectories (Arthur, 1989; David, 1985). Path-dependent developments are impossible or at least very hard to reverse and may result in inefficiency when necessary changes are prevented. Recently, Garud and Karnøe (2001) launched the alternative concept of path creation. While recognizing the existence of path-dependent developments, they emphasize the ability of entrepreneurs to make mindful deviations from established paths to accomplish change.

Keywords: Path Dependence; Organizational Identity; Dynamic Capability; Strategic Management Journal; Local Branch (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-27407-5_6

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DOI: 10.1057/9780230274075_6

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