Path-dependence in technologies and organizations : a concise guide

Path dependence may be defined over a spectrum of phenomena ranging from mere dependence upon initial conditions to strong dependence upon a specific unfolding of events. It is observable at various layers of the economic system, ranging from the individual up to the aggregate system level. At the technology level, path dependence shows up when there is a persistence and lock-in to particular technological choices. Path dependence is also ubiquitous in the evolution and patterns of decision-making of organizations. The structure and rigidity of organizational memory, as well as the processes of interpretation, information retrieval and action formation of organizations, are fundamental sources of path dependence.