Inscribed Strategies: Exploring the Organizational Nature of Strategic Lock-in

Abstract

An organization's ability to act strategically under conditions of path dependence relies not only on the particular form of a strategic path but also on how this path is inscribed in an organization. To achieve a better understanding of this process, we shall introduce the concept of strategic path inscription and distinguish between mechanism inscription and pattern inscription. By referring to power, and formal and informal structures, the paper explores dimensions of the organizational context and its relation to strategic path inscription. The paper draws on an empirical study contrasting two established newspaper publishing organizations based in Germany. The comparative analysis of these cases reveals that in both organizations there are different forms of strategic pattern inscription but very similar forms of mechanism inscription. It is argued that the analysis of pattern inscription reveals much about the organizational nature of strategic lock-ins and, consequently, the range of variety that remains available to an organization after a specific path has emerged.

Path dependence and the stabilization of strategic premises: how the funeral industry buries itself

“…Based on these works, management scholars have come to understand path dependence predominantly as a process that explains the reduction of managerial scope over time (Dobusch and Kapeller 2013). Path dependence provides powerful answers to both how and why strategic patterns-the selected combination of organizational routines and resources-are reproduced (Koch 2008(Koch , 2011Vergne and Durand 2011). Although certain conceptual details remain subject to further debate, Dobusch and Kapeller (2013) identified a theoretical consolidation of path Fig.…”

“…Recent contributions to the literature on incumbents' rigidities and path dependence emphasize that both resource-based and routine-based reasons for the stability of strategic patterns can largely be traced back to organizations' unchanged strategic premises (Benner and Tripsas 2012;Gilbert 2005Gilbert , 2006Koch 2011;Rothmann and Koch 2014;Tripsas and Gavetti 2000). Strategic premises are the basic assumptions on which strategic patterns are based and consist of a system's self-understanding and its perception of the environment (Albert and Whetten 1985;.…”

“…While strategic premises generally guide strategic choice, they may become particularly problematic in lock-ins (Tripsas 2009). Because strategic premises constitute an essential part of the organizational context in which the strategic path is engraved, they tightly constrain strategic activities in lock-ins due to constrained perceptions or normative rejections of strategic alternatives and the contraction of resource investments (Koch 2011;Miller and Chen 1994;Rothmann 2013;Sydow et al 2009;Tripsas and Gavetti 2000). Therefore, the literature on incumbents' rigidities and path dependence regards the update of potentially obsolete strategic premises in lock-ins as a necessary pre-condition for strategic change in lock-ins (Rothmann and Koch 2014;Tripsas 2009;Tripsas and Gavetti 2000).…”

“…Path dependence refers to a successdriven process that may lead organizations into a state of persistence in which they continuously reproduce a strategic pattern (Sydow et al 2009;Vergne and Durand 2010). While previous literature has traditionally focused on exploring resourcebased and routine-based reasons for such persistence, recent works bring the underlying strategic premises of paths into focus to induce a better understanding of this phenomenon (Gilbert 2005;Koch 2011;Miller and Chen 1994;Rothmann 2013;Tripsas 2009). Strategic premises tightly narrow the scope of action for the selection of strategic alternatives to the extent that paths seem to be reproduced as long as the underlying strategic premises remain unchanged (Rothmann and Koch 2014;Tripsas and Gavetti 2000).…”

“…The negative feedback that organizational crises generate is deemed sufficient to challenge the status quo and begin a process of reflection on, and revision of, strategic premises (Schreyögg and Kliesch-Eberl 2007). Along with the adjustment of strategic premises, such shocks would rebroaden the scope for off-path activities (Koch 2011;Sydow et al 2009;Vergne and Durand 2010).…”