Nokia Rise and Fall

Journal of Theoretical and Applied Electronic Commerce Research

ISSN 0718–1876 Electronic Version

VOL 11 / ISSUE 2 / MAY 2016 / 16-27

© 2016 Universidad de Talca - Chile

This paper is available online at

www.jtaer.com

DOI: 10.4067/S0718-18762016000200003

Path Creation, Path Dependence and Breaking Away from

the Path: Re-Examining the Case of Nokia

Jens Wang1, Jonas Hedman2 and Virpi Kristiina Tuunainen3

Copenhagen Business School, Department of IT Management, Copenhagen, Denmark,

1

jensfwang@gmail.com, 2 jh.itm@cbs.dk

3

Aalto University, School of Business, Helsinki, Finland, virpi.tuunainen@aalto.fi

Received 5 November 2014; received in revised form 9 September 2015; accepted 6 November 2015

Abstract

The explanation of how and why firms succeed or fail is a recurrent research challenge. This is particularly

important in the context of technological innovations. We focus on the role of historical events and decisions in

explaining such success and failure. Using a case study of Nokia, we develop and extend a multi-layer path

dependence framework. We identify four layers of path dependence: technical, strategic and leadership,

organizational, and external collaboration. We show how path dependence at these four interdependent layers

can blindfold the organization from seeing and understanding the importance of intermediate outcomes, which

in the case of Nokia was the importance of software ecosystems and adaptable mobile devices. Furthermore,

we show how the layers of path dependence mutually reinforce each other and become stronger.

Keywords: Path creation, Path dependence, Mobile industry, Nokia, Evolutionary theories

16

Path Creation, Path Dependence and Breaking Away from the Path: Re-Examining

the Case of Nokia

Jens Wang

Jonas Hedman

Virpi Kristiina Tuunainen

Journal of Theoretical and Applied Electronic Commerce Research

ISSN 0718–1876 Electronic Version

VOL 11 / ISSUE 2 / MAY 2016 / 16-27

© 2016 Universidad...