Abstract
In his influential essay, Powell (1991, p. 186) stresses how little we know about the genesis and emergence of institutions. To him, neo-institutional theory consequently fails to look at issues of reproduction adequately. Path dependence, in his opinion, could contribute to these issues, not least due to its endogenous focus on the constitution and distributed reproduction of collective rationalities. And yet, studies in the neo-institutionalism tradition continue to mention the concept of path dependence with little consideration for its theoretical foundations (e.g. Holm, 1995; Thornton, Jones, and Kury, 2005; Modell, Jacobs, and Wiesel, 2007). In fact, and as we will see later, path dependence is more often evoked for rhetorical purposes than for the usage of its analytical tools (for a similar criticism see Sydow, Schreyögg, and Koch, 2009). As a result, the potential of path dependence has not yet really been exploited by institutionalists.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Ansari, S. M., Fiss, P., and Zajac, E., 2010. Made to fit: How practices vary as they diffuse. Academy of Management Review, 35 (1), pp. 67–92.
Argyris, C., 1976. Single-loop and double-loop models in research on decision making. Administrative Science Quarterly, 21, pp. 363–75.
Arthur, W. B., 1989. Competing technologies, increasing returns, and lock-in by historical events. Economic Journal, 99, pp. 116–31.
Arthur, W. B. and Lane, D., 1994. “Information contagion”, in W. B. Arthur (ed.) Increasing Returns and Path Dependence in the Economy. Ann Arbor: University of Michigan Press, pp. 69–97.
Barley, S. R. and Tolbert, P. S., 1997. Institutionalization and structuration: Studying the links between action and institution. Organization Studies, 18 (1), pp. 93–117.
Baron, J. N., Dobbin, F. R., and Jennings, P. D., 1986. War and peace: The evolution of modern personnel administration in US industry. American Journal of Sociology, 92 (2), pp. 350–83.
Barnes, W., Gartland, M. P., and Stack, M., 2004. Old habits die hard: Path dependency and behavioral lock-in. Journal of Economic Issues, 38 (2), pp. 371–77.
Battilana, J., Leca, B., and Boxenbaum, E., 2009. How actors change institutions: Towards a theory of institutional entrepeneurship. Academy of Management Annals, 3 (1), pp. 65–107.
Beck, N. and Walgenbach, P., 2005. Technical efficiency or adaptation to institutionalized expectations? The adoption of ISO 9000 standards in the German mechanical engineering industry. Organization Studies, 26 (6), pp. 841–66.
Berger, P. L. and Luckmann, T., 1966. The Social Construction of Reality, A Treatise in the Sociology of Knowledge. New York: Penguin Social Sciences.
Beyer, J., 2010. The same or not the same: On the variety of mechanisms of path dependence. International Journal of Social Sciences, 5 (1), pp. 1–11.
Blinn, M., 2009. Dubbed or duped? Path dependence in the German film market: An inquiry into the origins, persistence and effects of the dubbing standard in Germany. Doctoral dissertation, Berlin: Freie Universität Berlin.
Bunge, M. A., 2004. How does it work? The search for explanatory mechanisms. Philosophy of the Social Sciences, 34, pp. 182–210.
Colyvas, J. A. and Powell, W. W., 2006. Roads to institutionalization: The remaking of boundaries between public and private science. Research in Organizational Behavior, 27, pp. 305–53.
Dacin, M. T., Goodstein, J., and Scott, W. R., 2002. Institutional theory and institutional change: Introduction to the special research forum. Academy of Management Journal, 45 (1), pp. 45–57.
David, P. A., 1985. Clio and the economics of QWERTY. American Economic Review, 75, pp. 332–37.
David, P. A., 1992. Heroes, herds and hysteresis in technological history: Thomas Edison and “the battle of the systems” reconsidered. Industrial and Corporate Change, 1 (1), pp. 129–79.
David, P. A., 1994. Why are institutions the “carriers of history”? Path dependence and the evolution of conventions, organizations and institutions. Structural Change and Economic Dynamics, 5 (2), pp. 205–20.
David, P. A., 2007. Path dependence: A foundational concept for historical social science. Cliometrica, 1 (2), pp. 91–114.
Deeg, R., 2001. Institutional change and the uses and limits of path dependency: The case of German finance. MPIfG Discussion Paper 01/6. Max-Planck-Insitute for the Study of Society. Cologne, Germany.
DiMaggio, P. J., 1988. “Interest and agency in institutional theory”, in L. G. Zucker (ed.) Institutional Patterns and Organizations: Culture and Environment. Cambridge: Ballinger, pp. 3–22.
DiMaggio, P. J., 1991. “Constructing an organizational field as a professional project: US art museums, 1920–1940”, in W. W. Powell and P. J. DiMaggio (eds) The New Institutionalism in Organizational Analysis. Chicago: University of Chicago Press, pp. 267–92.
DiMaggio, P. J. and Powell, W. W., 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, pp. 147–60.
DiMaggio, P. J. and Powell, W. W., 1991. “Introduction”, in W. W. Powell and P. J. DiMaggio (eds) The New Institutionalism in Organizational Analysis. Chicago: University of Chicago Press, pp. 1–38.
Djelic, M.-L. and Quack, S., 2007. Overcoming path dependency: Path generation in open systems. Theory and Society, 36, pp. 161–86.
Farjoun, M., 2002. The dialectics of institutional development in emerging and turbulent fields: the history of pricing conventions in the on-line database industry. Academy of Management Journal, 45 (5), pp. 848–74.
Fligstein, N., 1985. The spread of the multidivisional form among large firms, 1919–1979. American Sociological Review, 50 (3), pp. 377–91.
Friedland, R. and Alford, R., 1991. “Bringing society back in: Symbols, practices and institutional contradictions”, in W. W. Powell and P. J. DiMaggio (eds) The New Institutionalism in Organizational Analysis. Chicago: University of Chicago Press, pp. 232–63.
Garud, R. and Karnøe, P., 2001. Path Dependence and Creation. Mahwah: LEA.
Garud, R., Jain, S., and Kumaraswamy, A., 2002. Institutional entrepreneurship in the sponsorship of common technological standards: The case of SUN Microsystems and Java. Academy of Management Journal, 45 (1), pp. 196–214.
Giddens, A., 1984. The Constitution of Society: Outline of the Theory of Structuration. Berkeley: University of California Press.
Granovetter, M. S. and McGuire, P., 1998. “The making of an industry: Electricity in the United States”, in M. Callon (ed.) The Law of Markets. Oxford: Blackwell, pp. 147–73.
Greenwood, R. and Hinings, C. R., 1996. Understanding radical organizational change: Bringing together the old and the new institutionalism. Academy of Management Review, 21 (4), pp. 1022–54.
Greenwood, R., Oliver, C., Sahlin-Andersson, K., and Suddaby, R., 2008. “Introduction”, in R. Greenwood, C. Oliver, R. Suddaby, and K. Sahlin-Andersson (eds) The Sage Handbook of Organizational Institutionalism. Thousand Oaks: Sage Publishing, pp. 1–46.
Greenwood, R., Raynard, M., Kodeih, F., Micelotta, E., and Lounsbury, M., 2011. Institutional complexity and organizational responses. Academy of Management Annals, 5 (1), pp. 317–71.
Hall, P. A. and Taylor, R. C. R., 1996. Political science and the three institutionalisms. Political Science, 44, pp. 936–57.
Hannan, M. T. and Freeman, J., 1984. Structural inertia and organizational change. American Sociological Review, 49, pp. 149–64.
Hannan, M. T., Plos, L., and Carroll, G. R., 2004. The evolution of inertia. Industrial and Corporate Change, 13, pp. 213–42.
Hargadon, A. B. and Douglas, Y., 2001. When innovations meet institutions: Edison and the design of the electric light. Administrative Science Quarterly, 46, pp. 476–501.
Hirsch, P. M. and Gillespie, J. J., 2001. “Unpacking path dependence: Differential valuations accorded history across disciplines”, in R. Garud and P. Karnøe (eds) Path Dependence and Creation. Mahwah: LEA, pp. 69–90.
Hirsch, P. M. and Lounsbury, M., 1997. Ending the family quarrel. Toward a reconciliation of “old” and “new” institutionalisms. American Behavioral Scientist, 40 (4), pp. 406–18.
Hoffman, A. J., 1999. Institutional evolution and change: Environmentalism and the US chemical industry. Academy of Management Journal, 42 (4), pp. 351–71.
Holm, P., 1995. The dynamics of institutionalization: Transformation processes in Norwegian fisheries. Administrative Science Quarterly, 40, pp. 398–422.
Jepperson, R. L., 1991. “Institutions, institutional effects, and institutionalism”, in W. W. Powell and P. J. DiMaggio (eds) The new institutionalism in organizational analysis. Chicago: The University of Chicago Press, pp. 143–63.
Johnson, V., 2007. What is organizational imprinting? Cultural entrepreneurship in the founding of the Paris Opera. American Journal of Sociology, 113 (1), pp. 97–127.
Koch, J., 2011. Inscribed strategies: Exploring the organizational nature of strategic lock-in. Organization Studies, 32 (3), pp. 337–63.
Krugman, P., 1991. History and industry location: The case of the manufacturing belt. American Economic Review, 81 (2), pp. 80–83.
Lawrence, T. B., Suddaby, R. and Leca, B., 2011. Institutional work: Refocusing institutional studies of organization. Journal of Management Inquiry, 20 (1), pp. 52–8.
Lawrence, T. B., Winn, M. I. and Devereaux-Jennings, P., 2001. The temporal dynamics of institutionalization. Academy of Management Review, 26 (4), pp. 624–44.
Leblebici, H., Salancik, G. R., Copay, A. and King, T., 1991. Institutional change and the transformation of interorganizational fields: An organizational history of the US radio broadcasting industry. Administrative Science Quarterly, 36, pp. 333–63.
Lounsbury, M. and Crumley, E. T., 2007. New practice creation: An institutional perspective on innovation. Organization Studies, 28 (7), pp. 993–1012.
Lounsbury, M., Ventresca, M. J. and Hirsch, P. M., 2003. Social movements, field frames and industry emergence: A cultural-political perspective on US recycling. Socio-Economic Review, 1, pp. 71–104.
Mahoney, J., 2000. Path dependence in historical sociology. Theory & Society, 29, pp. 507–48.
Mayntz, R., 2004. Mechanisms in the analysis of social macro-phenomena. Philosophy of the Social Sciences, 34 (2), pp. 237–59.
Merton, R. K., 1936. The unanticipated consequences of purposive social action. American Sociological Review, 1 (6), pp. 894–904.
Meyer, J. W. and Rowan, B., 1977. Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83 (2), pp. 340–63.
Modell, S., Jacobs, K., and Wiesel, F., 2007. A process (re)turn? Path dependencies, institutions and performance management in Swedish central government. Management Accounting Research, 18, pp. 453–75.
Munir, K. A. and Phillips, N., 2005. The birth of the “Kodak moment”: institutional entrepreneurship and the adoption of new technologies. Organization Studies, 26 (11), pp. 1665–87.
North, D. C., 1990. Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.
Orlikowski, W. J., 1992. The duality of technology: Rethinking the concept of technology in organizations. Organization Science, 3 (3), pp. 398–427.
Pache, A.-C. and Santos, F. M., 2010. When worlds collide: The internal dynamics of organizational responses to conflicting institutional demands. Academy of Management Review, 35 (3), pp. 455–76.
Powell, W. W., 1991. “Expanding the scope of institutional analysis”, in W. W. Powell and P. J. DiMaggio (eds) The New Institutionalism in Organizational Analysis. Chicago: University of Chicago Press, pp. 183–203.
Powell, W. W., Packalen, K., and Whittington, K. (forthcoming). “Organizational and institutional genesis: The emergence of high-tech clusters in the life sciences”, in J. Padgett and W. W. Powell (eds) The Emergence of Organizations and Markets (Chapter 13). Princeton: Princeton University Press.
Sastry, A., 1998. Archetypal self-reinforcing structures in organizations: A system dynamics perspective of cognitive, social, and institutional processes. Paper presented at the 16th International Conference of the System Dynamics Society. Quebec City, Canada.
Schneiberg, M., 2007. What’s on the path? Path dependence, organizational diversity and the problem of institutional change in the US economy. Socio-Economic Review, 5, pp. 47–80.
Schreyögg, G. and Kliesch-Eberl, M., 2007. How dynamic can organizational capabilities be? Towards a dual-process model of capability dynamization. Strategic Management Journal, 28 (9), pp. 913–33.
Schreyögg, G., Sydow, J. and Holtmann, P., 2011. How history matters in organizations: The case of path dependence. Management & Organizational History, 6 (1), pp. 81–100.
Scott, W. R., 1991. “Unpacking institutional arguments”, in W. W. Powell and P. J. DiMaggio (eds) The New Institutionalism in Organizational Analysis. Chicago: University of Chicago Press, pp. 164–82.
Scott, W. R., 2008. Institutions and Organizations, Ideas and Interests. 3rd edn Thousand Oaks: Sage Publishing.
Seo, M.-G. and Creed, D. W. E., 2002. Institutional contradictions, praxis, and institutional change: A dialectical perspective. Academy of Management Review, 27 (2), pp. 222–47.
Stinchcombe, A. L., 1965. “Social structures and organizations”, in J. G. March (ed.) Handbook of Organizations. Chicago: Rand McNally, pp. 142–93.
Suddaby, R., 2010. Editor’s comments: Construct clarity in theories of management and organization. Academy of Management Review, 35 (3), pp. 346–57.
Suddaby, R., Hardy, C., and Huy, G. N., 2011. Where are the new theories of organization? Academy of Management Review, 36 (2), pp. 236–46.
Sydow, J., Schreyögg, G., and Koch, J., 2009. Organizational path dependence: Opening the black box. Academy of Management Review, 34 (4), pp. 689–709.
Thelen, K., 1999. Historical institutionalism and comparative politics. Annual Review of Political Science, 2, pp. 369–404.
Thornton, P. H., Jones, C., and Kury, K., 2005. Institutional logics and institutional change in organizations: Transformation in accounting, architecture, and publishing. Research in the Sociology of Organizations, 23, pp. 125–70.
Thornton, P. H. and Ocasio, W., 2008. “Institutional logics”, in R. Greenwood, C. Oliver, R. Suddaby, and K. Sahlin-Andersson (eds) The Sage Handbook of Organizational Institutionalism. Thousand Oaks: Sage Publishing, pp. 99–129.
Tolbert, P. S., 1985. Institutional environments and resource dependence: Sources of administrative structure in institutions of higher education. Administrative Science Quarterly, 30 (1), pp. 1–13.
Van Nieuwaal, K., 2010. “Institutional path dependence: A resistance to controversies”, in Schreyögg, G. and Sydow, J. (eds) The Hidden Dynamics of Path Dependence. London: Palgrave Macmillan, pp. 217–30.
Vergne, J.-P. and Durand, R., 2010. The missing link between the theory and empirics of path dependence: Conceptual clarification, testability issue, and methodological implications. Journal of Management Studies, 47 (4), pp. 736–59.
Whetten, D. A., Felin, T., and King, B. G., 2009. The practice of theory borrowing in organizational studies: Current issues and future directions. Journal of Management, 35 (3), pp. 537–63.
Woiceshyn, J., 2000. Technology adoption: Organizational learning in oil firms. Organization Studies, 21 (6), pp. 1095–118.
Zucker, L. G., 1977. The role of institutionalization in cultural persistence. American Sociological Review, 42 (5), pp. 726–43.
Zukowski, R., 2004. Historical path dependence, institutional persistence, and transition to market economy: The case of Poland. International Journal of Social Economics, 31 (10), pp. 955–73.
Editor information
Editors and Affiliations
Copyright information
© 2013 Olivier Berthod and Jörg Sydow
About this chapter
Cite this chapter
Berthod, O., Sydow, J. (2013). Locked in the Iron Cage? When Institutionalization Is (not) a Path-Dependent Process. In: Sydow, J., Schreyögg, G. (eds) Self-Reinforcing Processes in and among Organizations. Palgrave Macmillan, London. https://doi.org/10.1057/9780230392830_11
Download citation
DOI: https://doi.org/10.1057/9780230392830_11
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-35207-4
Online ISBN: 978-0-230-39283-0
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)