Increasing returns are the core engine driving path-dependent lock-in.

Evidence

Arthur (1989, 1994) was the first to model a formal theory of path dependence and to expose increasing returns as the major process driver. Later on, this thinking was extended to the economics of institutions (North, 1990). — Jörg Sydow, Georg Schreyögg, and Jochen Koch, Organizational Path Dependence, 15

Categorization

• XREF: Names the theoretical lineage: Arthur on technology, North on institutions — the two pillars this chapter extends to organizations.