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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
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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...