Path Creation, Path Dependence and Breaking Away from the Path: Re-Examining the Case of Nokia

Research output: Contribution to journalArticleScientificpeer-review

Researchers

Research units

  • Copenhagen Business School

Abstract

The explanation of how and why firms succeed or fail is a recurrent research challenge. This is particularly important in the context of technological innovations. We focus on the role of historical events and decisions in explaining such success and failure. Using a case study of Nokia, we develop and extend a multi-layer path dependence framework. We identify four layers of path dependence: technical, strategic and leadership, organizational, and external collaboration. We show how path dependence at these four interdependent layers can blindfold the organization from seeing and understanding the importance of intermediate outcomes, which in the case of Nokia was the importance of software ecosystems and adaptable mobile devices. Furthermore, we show how the layers of path dependence mutually reinforce each other and become stronger.

Details

Original languageEnglish
Pages (from-to)16-27
Number of pages12
JournalJOURNAL OF THEORETICAL AND APPLIED ELECTRONIC COMMERCE RESEARCH
Volume11
Issue number2
Publication statusPublished - May 2016
MoE publication typeA1 Journal article-refereed

    Research areas

  • Path creation, Path dependence, Mobile industry, Nokia, Evolutionary theories, DYNAMIC CAPABILITIES, STRATEGIC MANAGEMENT, LOCK-IN, BUSINESS, MODEL, TRANSFORMATION, FIRM, VIEW

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