Path dependence describes how strategic options narrow into eventual lock-in.

Evidence

The general claim of path-dependence theory is that over time a (strategic) process can, at a final stage, lead to a lock-in situation, where change will be very hard, costly or even impossible (Arthur, 1989; 1994; David, 1985). Taking path-dependence theory as a rigorous perspective, it can be understood as an approach to explaining emerging process-related phenomena, thereby focusing on self-reinforcing mechanisms and forming specific strategic practices (a combination of routines and resources) which can eventually lead to a lock-in situation (Sydow et al., 2009). In other words, path dependence tries to explain how strategic scopes narrow down over time. — Georg Schreyögg and Jörg Sydow, The Hidden Dynamics of Path Dependence, 369

Categorization

  • DEFINE: The cleanest statement of the core term: lock-in is a state where change becomes very hard, costly, or impossible.