Strategic Choice, Managerial Cognition and the Forming & Breaking of Path Dependence: A Combined Perspective of Action and Cognition

Abstract

Path dependence involves many factors at different levels. However, there lacks still a comprehensive perspectives to link both micro level dynamic change and related macro organizational evolution. By distinguishing the types of path dependence into action level and cognition level, this paper illustrates the forming of path dependence from the perspectives of strategic choice and managerial cognition, which has an interactive influence to reinforce path dependence. The case of TKS offers valuable inspirations for the forming and breaking of path dependence, illustrates further the interactive role of managerial cognition and strategic choice in forming and breaking path dependence. In rapid changing nonlinear environment, it will be really a challenge to explore the micro dynamic and the evolution of organization structure and function at macro level. A combined perspective of cognition and action could be a possible choice for the related research.

Key words: Strategic choice; Cognitive freezing; Path dependence