Abstract
Path dependence occurs as dominant action patterns emerge within organizations, driven by self-reinforcing mechanisms. Whilst scholars agree that positive feedback and increasing returns are essential in this process, it is unclear what role negative feedback might play in subsequently undoing dependence. This paper addresses this gap by presented a critical review of this literature organised around the temporal and structural dimensions of path dependence. Drawing on the metaphor of inertia, it explores ways in which path dependence is undone over time, pointing to the sustained nature of decreasing returns alongside the decoupling of supporting structures. The review therefore adds to our understanding of the process of path dependence and the driving role played by self-reinforcing mechanisms.Path dependence occurs as dominant action patterns emerge within organizations, driven by self-reinforcing mechanisms. Whilst scholars agree that positive feedback and increasing returns are essential in this process, it is unclear what role negative feedback might play in subsequently undoing dependence. This paper addresses this gap by presented a critical review of this literature organised around the temporal and structural dimensions of path dependence. Drawing on the metaphor of inertia, it explores ways in which path dependence is undone over time, pointing to the sustained nature of decreasing returns alongside the decoupling of supporting structures. The review therefore adds to our understanding of the process of path dependence and the driving role played by self-reinforcing mechanisms.