Developing A New Lens: Introducing Path Dependence Theory to Explore the Facial Stereotype in the Online Outsourcing Market

The online outsourcing market has attracted more and more people to join. However, clients’ facial stereotypes lead to biases in fast-paced hiring. So far, the dominant explanations for online labor market stereotypes have been limited to heuristic theories, lacking a theoretical framework that can systematically cover the complete path of stereotype generation, development, and elimination. This study aims to construct a two-stage conceptual framework of stereotype path dependence in online outsourcing markets (OOM). First, construct a path-dependence trigger mechanism based on the contextual characteristics of the OOM. Second, develop the self-reinforcing cycle of stereotypes by combining the hiring mechanism and characteristics of the OOM. We propose a two-stage intervention approach based on the constructed theoretical framework. Specifically, platforms can control the triggers of stereotype path-dependence by reducing system uncertainty, complexity, and balancing power structures or avoid stereotype reinforcement by recommending freelancers who are contrary to employer preferences.